How can technology giants and social networks distort the crypt market?
These companies have the largest user communities on the planet. They have the money, the talent and the ambition to take everything. It's not the old banks. They are not the archaic governments. Like Bitcoin, they are daughters of the Internet. They control our information and now they go for our money. Totalitarianism or progress? Future or dystopia? Will it be the end of cryptocurrencies? Well, not everything is as it seems.
It is one thing to swim against the current and compete with a terrestrial turtle. But another very different is to face the sharks in their waters. Banks and governments still live in a world before the arrival of the Internet. In this sea, the crypts have their advantages. Simply, they are a better adapted species for the digital world of today. However, giants such as Facebook, Twitter, Telegram, Google, Apple and Amazon are a very different story. They dominate this kingdom and occupy the top of the food chain. Underestimating them would be a blunder. Arrogance is not a good counselor here.
A cryptocurrency like Bitcoin rests mainly on two pillars. One is the code. The other is your community. Now, here we have several points for meditation. First, remember that the code is open. Therefore, copiable. Anyone can take the code for himself. You can change it and even improve it. This technology belongs to everyone and nobody. That is, it is not exclusive to traditional cryptocurrencies. Any of these technological giants can appropriate the code and take advantage of many of its advantages.
Second, the theme of the community. According to the blockchain statistics website CoinMetrics, Bitcoin (BTC) reached one million active daily addresses on June 14. Certainly, this number represents a great achievement and an important advance in terms of growth. It is well known that the vitality of a cryptocurrency depends very much on the size of your community. It must become a movement in constant expansion to succeed.
However, we must remember that the social network Facebook has more than 2,100 million users. Instagram exceeds 1,000 million users. Whatsapp has more than 1,500 million. And, of course, Google is the most used search engine on the Web. Get hundreds of millions of queries every day. Their communities are the largest on the planet. They are the undisputed kings of the network and the great powers in the field of technology. Code and community. There are the two pillars.
The Telegram instant messaging service announced the launch of its cryptocurrency for the third semester of 2019. The Telegram Open Network (TON) project has aroused much expectation, because it is one of the first companies of its kind to immerse itself in the crypt market . Lately, however, the big news has been Facebook's new cryptocurrency. The controversial Libra project has arrived, and has generated a great commotion. Creating a wave of comments, among critics and supporters, Libra can go through everything, except unnoticed. Apparently, Libra would be stepping on the street in early 2020. The Apple firm has not yet launched its own crypto, but it has taken a small step. With the presentation of its "Cryptokit", Apple opens its doors and offers the support to use Blockchain and process cryptocurrencies in their devices. Jack Dorsey, the founder of Twitter and the Square payment provider, has formed a team dedicated to improving the crypt industry in Square. Its aspiration is to create a global and frictionless payment infrastructure. Now, it's only a matter of time before Google and Amazon join the club and launch similar initiatives. The giants are on the attack, Sancho!
We are all wondering if these projects are good or bad for the crypt market. Are they a real competition? In any market, the diversity of options stimulates growth. The competition is healthy and necessary. Simply, it gives life and dynamism to the system. In general terms, it is a very positive element. As more products are offered, there will be more color in the air. Monopolies are gray and harmful. And the good is born of variety.
Of course there are skeptics, inside and outside the crypto community. It is normal. We are all inclined to jealously protect our territory. Intruders, rarely, are welcome. However, it is inevitable. The others always want their share of cake. In this heated debate, the issue of decentralization appears with recurrence. Some prefer orange juice. And others prefer Coca-Cola. But everyone wants the freedom to choose. In freedom, everything seems sweeter.
Now, is it possible to live together within diversity? Well, I'm afraid we will not have another option. Each of these projects will be useful for some people. Surely, the future will be multicolored. And, in the end, the fittest will survive. The most useful projects will pass the tests. And the weakest, probably, will die on the way.
Possibly, a single cryptocurrency will not have the power to change the world. Bitcoin could be established as a store of value, the "digital gold" of this new stage. However, cryptocurrencies such as Libra could have their uses. Especially in the online retail trade, it would have its utility. This future that we so much anticipate, perhaps, will be a mixed one. And users would choose the solution that suits them best in each situation. The degree of privacy will be an important variable in certain cases, surely. But other variables will arise. Undoubtedly, the same market will look for its own ways. The competition is not bad. On the contrary, it has great benefits. This is just beginning.