In 1995, Newsweek Famously Predicted “Why the Internet will Fail”. It’s Deja Vu All Over Again
The year was 1995. The Internet was a mess and total confinement, with no Google, no Amazon, no Facebook, no method in all the madness. NBC’s Today Show asked, “What is the Internet Anyway?”
The answer was, “It is a massive computer network that’s becoming really big now, like a computer billboard… An information superhighway that will replace the yellow pages we know today.”
Some guests on the Today Show had their doubts, and even referred to the internet as a “group therapy chat room of the 1990s”, while others said they were so “inundated with information all the time that they didn’t want more.”
It was hard to see back then the potential of such a powerful technology as the internet.
Others, like Bill Gates, tried to convince people of the value of the internet, saying, “It’s very hip to be on the internet right now, and it’s wild what’s going on!”
Kind of sounds like the confusion around blockchain in the world today, doesn’t it?
When David Letterman pointed out that people don’t need the internet to listen to a baseball game on a computer having the radio, they were laughing. Maybe you’re laughing in that same way about cryptocurrencies and blockchain.
Most people didn’t know what the internet was in 1995. So if you don’t know what blockchain is, don’t worry – you’re in good company.
The early adopters of blockchain cryptocurrency technology have become fanatical around it. While the internet was about giving access to information, anywhere, anytime, Blockchain is about being a value possible to use anywhere, anytime.
What cryptocurrency means for you?
Each day, you get up and go to work and get paid for your hard work. If you want to use, spend, send, invest or even give your money to charity, your money must first pass through multiple intermediaries, each of which takes a cut. Besides, it takes time to transfer funds, and by the end of the day, these are the monolithic financial institutions making billions by “handling” YOUR hard-earned money.
After the financial crisis of 2008, when the banks revealed their true nature, visionaries like Satoshi Nakamoto were ready to call bullshit and helped create a system that lets people exchange value from person to person without big financial intermediaries, taking hundreds of billions by being in the middle. In 2009, Nakamoto came up with the organizing theory for blockchain and Bitcoin, and the rest is the history.
Let’s fast forward to 2017, when cryptocurrencies and underlying blockchain technology went BOOM! Millions of people realized the power of blockchain and jumped on the bandwagon, buying crypto, trading, and living it. No surprise that Bank of America admitted that cryptocurrencies are a threat to its business model.
Just like the internet, which had its share of Alta Vista and MySpace, first generation Blockchain technologies were clunky and hard to use. The currencies driving blockchain adoption were on top, and they were extremely volatile. One of the first Bitcoin purchases was a pizza, for BTC 10,000, which in today’s dollars is about $20 million.
Similar to the gold-based currencies of the past and fiat currencies of today, Bitcoin had its share of scandals with Silk Road and Mt. Gox, and also had a wild ride up to $20,000 in 2017, before falling sharply back down to $10,000 in March 2018. But like any new technology, it takes time to find its footing. Remember: the internet took more than 10 years before the general public understood the true potential of the internet.
The early adopters of this new technology were the die hards, driving 45 minutes just to be able to spend their bitcoin at a local pizza place. Who cared if the pizza was any good? It was all about being able to spend this new shiny virtual currency.
Startups flooded the market, much like the companies of the late 1990s, realizing the potential of such a massive disruptive force of nature. Some survived and many did not in those wild days, but the world we live in today did not “fail,” as the technophobes predicted. In fact, it changed our lives, and blockchain will do the same.
Who you can trust
Companies like Coinbase and BitPay believe that cryptocurrency is the next massive paradigm shift. Besides a few brands out there, can you name any other household names in the cryptocurrency space?
While the cryptocurrency market is going through its growing pains, much like the dot com craze in the late 1990s, there is no central hub or App Store for cryptocurrency applications, where you can search for apps that will transform your life like the internet did 20 years ago.
Cryptanite will be the next App Store of blockchain technologies. This young and ambitious company carries a vision to build the next lifestyle solution around cryptocurrencies and blockchain technologies to fuel a cryptocurrency lifestyle for the next generation.
“I cannot emphasize the importance of this phenomenon enough. Blockchain is the next great revolution that will allow people to access a more efficient, more secure, and more humane marketplace that unlocks new value for the entire ecosystem,” says John Eagleton, Co-Founder of Cryptanite.
In 2016, Eagleton was first introduced to blockchain while reading “Blockchain Revolution” by Don Tapscott. Two years later, he emerged from Boulder, Colorado on the front range (for those who don’t know, the front range is the Rocky Mountain version of Silicon Valley).
Cryptanite Blockchain Technologies Corp (CSE: NITE) believes that cryptocurrencies and the blockchain will become a new lifestyle in the decades to come.
The company is pioneering the model of “apps within an app” that allows developers to join a growing community of cryptocurrency and blockchain enthusiasts to make the world a better place. Cryptanite’s market is the growing community of cryptocurrency users willing to transact within a cryptocurrency world to facilitate thousands of transaction types, from paying for coffee to chatting with experts in the community and working with hundreds of startups to figure out new ways of disrupting the financial Goliaths that dominate our fiat economy.
One of the companies they are working with to include their app on the Cryptanite platform is a charity fundraising application, making it easy to donate directly to organizations you support, just a few cents of your pocket change.
Innovations are going on
For now, Cryptanite supports half dozen applications within its app and is working with multiple startups though its Blockchain Garage program, helping them to build applications and participate in this massive paradigm shift.
To give an example, one of the Cryptanite’s platform apps is a QuickPay solution, similar to the one used by more than 800 million people in Asia by companies such as WeChat and Alipay. By implementing a new Payment rails, an alternative to Visa and MasterCard, merchants are no longer beholden by the financial giants, and can accept payment peer-to-peer at much lower cost, saving billions in fees which can be passed back to the consumer in the form of reward points, cash back or even cash forward, another concept being developed by Cryptanite. The more places accepting such payments, the more users will jump on board. It goes both ways, offline and online, benefiting everyone all around.
While a few large merchants like Overstock have accepted bitcoin, the smaller merchants cannot run the risk of accepting such a volatile coin, losing an ability to pay their overheads, such as rent, if the price goes down. That is where companies like Cryptanite are bridging the gap between the fiat world that we live in and the new emerging cryptocurrency world, making it easy for merchants to get paid in fiat currency, but making it easy for cryptocurrency users to pay in crypto.
Can fears ruin expectations?
As the price of bitcoin skyrocketed in 2017, users seem to be more interested in holding bitcoin to make money rather than spending it on goods or services that could be purchased in other fiat currencies. And when they try to spend it, the transaction fees are high, which eliminates the utility for micropayments under $20 USD. It can also take a long time to complete the transaction, another pain point for consumers.
As the market is still in the early stages, the lack of demand by consumers does not motivate merchants to invest in the infrastructure required to accept cryptocurrencies. Even, when merchants see some demand, they don’t want to take the risks. Today it’s still a very small share of overall merchant volume like in the case of Overstock’s last year, it represented only 0.0002% of their revenues.
There are still quirks in the system and adoption is still in its infancy, but blockchain skeptics should think once again. Let’s have this conversation one more time in 5 years.
Like any new technological shift it takes time, and Cryptanite is helping to solve these problems, building a new infrastructure for the new crypto economy.
To sum up
It’s a regular thing, both for consumers and merchants, to have doubts about blockchain and cryptocurrency invention, as it is still poorly adapted into a day to day life, but according to society’s rising interest to this new massive infrastructure, crypto predictions seem quite promising.
Luckily, there are such innovators as Cryptanite who are guiding newbies on blockchain use and assisting experienced traders to manage their cryptocurrencies of any types.
It’s only a matter of time until blockchain conquers the financial world and set everyone free from paying high transaction fees. And when that happens, Cryptanite will be there to support you.