If you’ve paid attention to the news recently, there seems to be a battle brewing between those who believe in cryptocurrency and those who don’t. Investing legends Warren Buffett and Charlie Munger have most recently stated their case against cryptocurrency—Munger went to the extreme by calling Bitcoin “disgusting and contrary to the interests of civilization.” Whoa… scary stuff.
But then you have the other side of the argument; those that believe that cryptocurrency is an inevitability and part of a valuable evolution of decentralized technology—Elon Musk and Mark Cuban have grabbed the most headlines recently.
Oh, and you don’t have to look hard to find a lot of folks changing their minds. Below are a few of the before and after headlines.
And it’s the latter that has inspired my interest the most. Most major companies that have taken a stand against cryptocurrency, and then change their minds a few years later is eye-opening. It means that there is demand (and profits) in the pipeline.
So why’s it such a hot topic? Let’s take a second a look back at other major technological evolutions.
I think it was Henry Ford that said, “If I asked people what they wanted, they’d ask for faster horses.” To a certain extent, whether its personal computers, the internet, or cars, there seems to be this familiar path to adoption. There is something called the Rogers Adoption Curve that explains this quite well (see below).
Where are we now when it comes to cryptocurrency. I think we’re in the beginning of the second stage listed above. It’s during this phase that new business are formed and new ideas cultivated—it’s also the time when risk takers begin to adopt the technology. This almost always creates a divide. But, scroll back up and take a look at those headlines again… and tell me which way were headed.
Keep eye out for my next post that begins to take a look at specific cryptocurrencies, and why some have (massive) utility over others.