Imminent global technological, social and economic disruptions enabled and caused by blockchain technology: Part 1 - Background

I have a background in innovation policy and a keen interest in the disruptive power of blockchain technology.
This is Part 1 of the series I introduced in my earlier post at https://steemit.com/blockchain/@drwom/immanent-global-technological-social-and-economic-disruptions-enabled-and-caused-by-blockchain-technology-introduction

This series is my attempt to combine my knowledge of the field of innovation (from a government and business perspective) with my observations about the current blockchain phenomena. Please refer to the introduction (linked above) for further information.

Note, I am not a financial adviser, and am not providing financial advice.

Part 1: The Cryptocraze

• Bitcoin. It all comes from Bitcoin (or BTC). Bitcoin is the proven test case for blockchains, demonstrating since its release as open source software in 2009 how a decentralised, peer to peer payment system can work in the real world. While in its early days it was valued at less than USD $1 since 2013 it has been trading at over $100 and in early 2017 was valued at $800. As I write, Bitcoin is being traded at $16,947.60 for 1 bitcoin. Bitcoin has seen a spectacular rise, which hasn't gone unnoticed. People are getting rich. Speculators, regulators and businesses are all starting to take notice. So are other IT professionals, looking at Bitcoin not just as a way to create wealth, but as merely the opening chapter of the blockchain story.

• Altcoins (so named because they are alternatives to Bitcoin). Since approximately 2013 a number of other blockchains have been developed, with a variety of purposes and potential functions. It's important to note here that most of the established top 50 altcoins (by market capitalisation - see coinmarketcap - https://coinmarketcap.com/all/views/all/) and many others have been in the pipeline long before ICOs became a thing (an ICO is an initial coin offering: a mechanism to raise funds for further work. I will write about this in a coming paper) and Bitcoin hit the sort of prices which make cheap copies and rorts attractive to scheisters. While crypto moves quickly, at the moment altcoins have been graced a level of trust by the crypto-community based upon the community's own level trust for Bitcoin. I have written about this here: https://steemit.com/cryptocurrency/@drwom/bitcoin-v-altcoins. Why is this important? Well because the whole crypto market is rising due to the confidence placed in Bitcoin alone. As I wrote in the above piece, there will come a day - sooner rather than later - when a few cryptos break from the pack to receive their own trust-capital from the crypto community. Indeed, it is probably happening already, although it is too early for me to name it/them. Another important thing to note about altcoins is that many of them have a clear disruption motive. They are aimed at "business as usual" models, and many of them will probably succeed over the coming months and years, turning existing business practices on their heads.

• A speculative bubble?

In light of the above, is anyone still asking whether the current levels of investment into cryptocurrencies is merely a speculative bubble? Probably. Some are probably still convinced that it is.

The following papers in this series will continue to provide arguments to the contrary. Please keep an eye on my steemit blog https://steemit.com/@drwom for the latest instalment:

1. What's really going on?

Geopolitics
Disrupting established business models and practices:
** Finance
** Innovation: start-ups, angel investing and venture capital
** Technology

Thanks for reading, sharing and commenting.

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@drwom has an extensive background in innovation, especially working with businesses and sector leaders to formulate and roll-out innovation policy on a state-wide government level.

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