Is there more to the current blockchain hype than there was to the Bitcoin hype of the past? 7 myths debunked. 7 reasons to be skeptical.
Two years ago, Bitcoin was at the peak of its hype cycle. The digital currency’s value skyrocketed. Increasing tenfold in 4 months, it passed the $1,200 mark, the price of an ounce of gold at the time.
Then, after a couple of security breaches and scandals such as the collapse of the largest exchange Mt. Gox in 2014, Bitcoin’s value fell down to $200. The speculation frenzy came to a halt. So did the VC’s enthusiasm for Bitcoin-based business models.
In 2015, the hype machine started humming again. The new hype revolves around the idea that Bitcoin may not be viable as a currency, but the blockchain, the distributed ledger technology that records bitcoin transactions would have a formidable potential on its own. As research reported on by Coindesk shows:
“On the question of whether “the blockchain can thrive without bitcoin”, 73% of the 55 respondents asked this question said they believe it can.”
The dream is that of an open self-administered transaction network in which multiple processors are forced