What Will Push Blockchain and Crypto Over The Top?

I've written about how similar this 4th Revolution is to the Digital Revolution, but now we need to look at what will happen next. First let me repeat the mantra I find myself saying pretty much every day when I try to explain this revolution to those who are not a part of it.

Crypto IS NOT the Block Chain

The Block Chain is FAR More Than Just Crypto

The blockchain is where things happen. New dApps are built on top of it, new ways of doing things in every industry you can think of, in every corner of the globe. The blockchain is very difficult to control for governments or political entities and very secure. It often uses a global alternate currency - Crypto - to fund development of these programs. Crypto can also be used as an investment tool, similar to how all currencies in the world are traded and valued. The two work together, but make no mistake - it's the apps built on the blockchain that help give crypto "value", not the other way around.

Let's look at the problems many of the blockchain devs are facing. Just like the early years of both PC's and the Internet, the blockchain space is being flooded with programs that can change the world, for both good and bad. Some are better than others, some are truly astounding in their scope and implementation. But make no mistake - at this point in time - ALL are startups, facing the problems all startups face.

While many of these startups have radical ideas and may know the tech inside and out, very few of them have the business experience to bring their products to a widespread audience. The person who you want as the leader of a startup is far different than the person you need once that product is off the drawing board and into circulation.

You see the same mistakes being repeated that lead up to the "dot com bubble". Lots of "hey look at this thing - isn't it slick? We're gonna change the world as we know it and make a ton of cash while we do it!" Payrolls become a burden as more and more people are added because after all - this thing is gonna take off and we'll all cash out and buy Ferraris!

Just like the early days of the net, the burn rate of capital investment becomes a watch word. "I burned through 2.7 mill last quarter. But John burned through 12 mill! Wow! He's really doing good!" Sooner or later they find that the money pot is NOT bottomless, and those 75 techs they have in the beautiful glass walled office space are eating money that isn't being replaced with product sale revenue.

For startups, the following holds true.

Burning through investment cash is NOT a mark of success.

The number of employees on the payroll is NOT a mark of success.

Fancy, high-priced office space is NOT a mark of success.

Product acceptance and sales IS a mark of success.

The ONLY number that counts is the one on your bank deposit slip.

In the past, the only way to get money for development was through traditional investment - certain banks, maybe angel investors, or investment groups who specialize in your area of involvement. With the advent of the blockchain and cryptocurrency, this step was changed. Now you could do your own coin token and get people to invest in your ICO (Initial Coin Offering). Not only could this fund your project, but the investors could make money passively if that coin value went up in the marketplace.

But welcome to the real world. The crypto market has (and arguably is still) going through it's own dot com bubble burst - the crypto winter. Literally thousands of ICO's have crashed and burned. Headlines are screaming about massive layoffs - Steem, Inc, ConsenSys, ETCDev and many more. For those of us who have been through the PC shakeup and the dot com bubble, this is expected and a good sign for the future.

The hype and rampant profit taking are meeting the reality of business. And that is a good thing! Now the market can begin to mature and grow as the weak leadership, ideas and outright scams fade from the marketplace and those who are left are forced to face the reality of the business world - you have to make a product that can actually sell and bring in more money. Now the fledgling companies who are left will be able to grow into the Apples and MicroSofts and Amazons of tomorrow.

They may need to take a crash course in business, or bring in seasoned management. They will have to take the painful steps of cost cutting and learn to run lean and mean. Many won't be be able to do that, but the ones who can, will not only survive, but thrive. And because crypto and the blockchain are at this step, I don't see what we are facing as Crypto Winter, but rather the start of a glorious Crypto Spring.

All images courtesy of Pixabay