Maturity Problems
Every project aims for maturity, nothing bad about that as it is one of the ways to measure growth. In short, without reaching some form maturity it makes the entire project become deterring. Maybe you thought I was going to center this topic on 'human maturity', no, it's going to delve into the world of finance. To dig further, it's more about crypto and even centering much on Bitcoin. Nevertheless, we can still make references to humans in order to sum up tangible facts. Before going any further, keep this question in mind, 'can maturity be a problem?'.
Just as said, in the instance of a human who has to grow from a baby to a full grown man. These stages are very important and if any is missed, there are likely to be some consequences of malfunctioning. Yet when this child grows to be a man, there are likelihood of maturity problems. Take for instance, he will be making decisions for himself. It seems a good thing right? What if he sides with negative decisions that affect things and people around him? He ends up disrupting the ecosystem and people become victims of it. We can see here that at some point, maturity brings incorporations that may harm a system.
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Let's get back to the world of blockchain technology, cryptocurrency and investing. The oracle of Omaha (Warren Buffet) once said he will only invest in what he knows. Yet behind this strong saying, there is a backup plan of getting out of an over stretched or over priced stock. To be more expandable, he goes out of stocks that he feels has reached its maturity level; or to some extent he moves to sell a huge chunk of that stock and takes the capital elsewhere most appropriate new projects that he feels has a future. Mr Warren and his firm was known to hold 30% of their assets in Apple stocks yet over 49% percent of Apple stocks have been sold out so that they could venture into new waters. Maybe a larger article for another day.
We've seen the rise of cryptocurrency and to be much precise, the pathfinder coin; bitcoin. From a snubbed crypto projects to a must need by even institutional investors as we speak. It has indeed been a testimony of how technology can disrupt. It has grown into new borders, can this be a problem? We have seen the prices of bitcoin swinging and swindling these days and if one would ask me what's the major issue; maturity problems. What birthed bitcoin was the pursuit of a borderless, fast and decentralized means of financial transactions. So has it lived up to these expectations? Well, let's do some analysis.
Is bitcoin both borderless? Of course, how about speed? I can say that layers 2 and 3 blockchains are working on that. How about the area of decentralization? This is where the maturity of bitcoin is incepting a big problem. With institutional investors playing the 'bitcoin ETF game', one needs to admit we are dealing with a 'centralized decentralization'. We never saw this coming, how these big names affect the prices of bitcoin from the outside is posing a big threat and risk to small investors and crypto enthusiasts. Bitcoin has outgrown many hands courtesy of maturity. It is already becoming a problem beyond repairs as we see, where is the future of decentralization heading to?
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The liquidations of bitcoin is getting higher and higher. We know the market undergoes a ziz-zag routine yet it seems there is a high manipulation of the bitcoin market since the inception of ETF. In general, it is affecting the entire cryptoverse, the Ethereum ETF was promising yet we also have to look through this lenses, are we selling out the cryptocurrency market just to ascertain the needed maturity? How does this affect the future of this entire ecosystem. It has been dissapointment upon dissapointment for bitcoin holders. This has nothing to do with a bearish season, we saw bitcoin bounce back from an unexpected low, one that seems was going to fold up this industry. The bounce back was because there were people that strongly believed in decentralization.
Do institutional investors have such believe; truth be told, this guys are mostly here to milk this virtual gold or make it a strong save haven for their assets and the cost will be by taking it from medium hands. There is a bitcoin colonization going on for a while NOW. As of the time of writing bitcoin is selling at $58,600 dollars, a price we wouldn't be expecting after that combos that took front-page of bitcoin even hitting $200,000 dollars. I feel there has been a price stretch at some point courtesy of big names and in return it is introducing an inevitable weekly liquidation to compensate this foreign invertors.
To conclude, let me add, they've been a control on top of a decentralized system like bitcoin. Was this what Satoshi bargained for from inception? The maturity of bitcoin has not promoted the features we so longed for. Looking at the entire cryptoverse, there continue to be market bleeding. Putting much concerns on price shifts has shifted the future of cryptocurrency and I wish it can be salvaged or is it too late already? Let's hope we don't lose it ALL.
Posted Using InLeo Alpha