With success comes a distortion of survival – The logical mistake of focusing on the people or things who passed a selection process and overlooking those who didn’t – and possibly a deeply ingrained complex of superiority in those who survived.
This has led to a preponderance of financial products in crypto based on your previous successes, but a lack of products and markets for real trade. Blockchain entrepreneurs do not serve the supposedly most common class of users, and those who do often bring products to market that cannot be marketed.
Blockchain and the financial sector
In the era of cryptocurrency startups in 2016-2017, many companies were formed that promised blockchain-based products: Blockchain social media, phones, logistics, legal technology, e-commerce technology and many, many more. Most of these projects failed for general reasons, such as the product’s mismatch with the market or the lack of a network effect that drives the product forward..
The winners of the first era of blockchain products were mostly financialwho found his clients among the many seeking wealth growth through currency exchange. They were also the only products that offered interfaces that didn’t force the user to interact directly with the chain until they needed to withdraw, and they also caused millions of people to store their assets on exchanges instead of using native ones Protect wallets.
Actually, The blockchain’s focus on financial economics was so disproportionate that we kind of gave up on a real economy. Most crypto products target the same finance-minded user. When you look at practically every well-funded product in this area, it focuses in one way or another on providing solutions for speculators. Most of the industry is competing for the exact same amount of attention.
We see before our eyes the growth and maturation of decentralized finance – for example, the introduction of non-fungible tokens and the growth of decentralized exchanges. From a product perspective, it is very important to follow the development of the sector as a whole. Crypto needs to evolve into an efficient market where cryptocurrencies can easily be used to buy services and products; that means using them as a means of payment for a diverse range of easy-to-use and intuitive products and services, not just for financial speculation.
Until we make cryptocurrencies available for non-investment purposes, there is a risk that market growth will stall.. The market is currently saturated with products aimed at the same user group. If we want the category and the market to grow, We need to start putting cryptocurrencies in the hands of people who are not investors or speculators.
For more than a decade, blockchain-based products have been developing at a rapid pace, but the most successful companies in the industry and their products focus almost entirely on boosting the financial economy. The biggest opportunities that remain in this area are those that point out the use of cryptocurrencies as a medium of exchange and place them in the hands of non-tech people who want to do business with currencies that are not issued by the government.. El Salvador, for example, is at the forefront of this approach.
Today’s winners, companies processing trillions of dollars every day, are the result of the “era of financial products,” and it is up to us engineers and entrepreneurs to build the next generation of companies and products. Survival bias can dictate that the best and brightest minds in this industry should work on the next generation of CeFi and DeFi platforms. Strictly speaking, Now is the time to start introducing the products that use cryptocurrencies and blockchain-powered assets and deploy them as they were designed: as peer-to-peer currencies that drive the exchange of goods and services ..
This is because, as the survival bias suggests, the most discerning minds and product designers in the blockchain space have focused on what has proven itself: financial products.. This opens up a great opportunity in areas where people do not focus their attention to develop a different range of products to solve a different problem.
This article does not provide investment advice or recommendations. All investing and trading involves risk and readers should do their own research when making a decision.
The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect the views and opinions of Cointelegraph.
Anderson McCutcheon is the founder and CEO of Chains, an operating system for the cryptocurrency industry. Anderson is building the full development of a crypto economy consisting of a marketplace, a freelance platform, and a cryptocurrency exchange. He is also an investor and entrepreneur with an interdisciplinary marketing and technology background and a long history in the cryptocurrency space. A pioneer in the blockchain industry and alumnus of Unit 8200, he founded Unicoin, Synereo (later HyperSpace) and currently runs Chains.com and the Nemesis Capital Litigation Fund.