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There is one question that we all desperately want to know, what is the future of crypto-currency and will it survive? The Coin Telegraph is here to try and answer this question.
There is one question that we all desperately want to know, what is the future of crypto-currency and will it survive? We all love them, their potential and their profit but is it enough to make them a viable form of payment? The Coin Telegraph decided to take a look into the future to see whether crypto-currencies are the future of money.Models of successCrypto-evangelists are fond of saying that crypto-currencies will do to banking what the internet did to information. Virtual currencies are indeed a natural extension of internet trends. Using this metaphor it is fair to ask what made the internet so successful and what do crypto-currencies share that with the internet? This can act as a guide to predict the success or failure of virtual money.Another guide to the future of crypto-currencies are trends in technology take-up and acceptance? What rules govern whether a new technology is broadly accepted or ends up in the metaphorical trashcan of failed proto-types and good ideas that never came good?A third guide to take with us into the future of crypto-currencies is brand research. What characteristics does a brand have in order to be successful?The internet modelPlug in a few search strings into Google to see what research has been done on these three searches and the results are scary. If you can believe the results – no one has really researched why the internet has become so successful – one might say that it is self evident, the internet is so useful and convenient, why do we need to research it? Because the internet has become such a critical part of our lives it makes sense to understand and to break down what exactly makes the internet so useful so that we can use it as a model for new technologies that can potentially revolutionize our lives.The internet is a forum for the exchange of information. It is not free – establishing communication networks costs substantial sums of money but its usefulness and accessibility means that everyone can use it (and it has now reached the point that everyone has to use it) and so the costs of these networks are spread over a large proportion of the population and this makes the costs acceptable given the value of information within the network.So what are the key elements of the internet? One of the key elements of the internet is its speed: communication can now be almost instantaneous, and even in the old-days an email exchange could take minutes as opposed to weeks using traditional mail. This means information can be found quickly and conveniently – there is no need to spend a day visiting a library or specialist consultants to get information necessary to make decisions, you can sit at home and do the job a lot faster, giving you more time to do the things you want, or be more productive.As a natural result of this speed of communication there is access to goods and services and furthermore it opens up an international marketplace. If I want to buy a new table I am no longer limited to what the local timber supplier imports, I can order direct from overseas. If I want a rare book, I can find it within a couple of minutes online and order it, whereas before the internet I may have had to travel overseas and spent months looking in old bookshops trying to find it. These are significant benefits and they are possible because a large number of people use the internet. It has acceptance and accessibility. The other important element of the internet is that it is decentralised and perceived to be relatively.Comparing Crypto-currencies with the internetComparing crypto-currencies with the internet may be disingenuous, after all, we wouldn’t have them if it weren’t for the internet. However, with the growth of internet commerce, it should hardly be surprising if an internet currency appeared. Crypto-currencies provide for almost instantaneous transactions, they are anonymous and they are decentralised. These are three critical elements which they share with the internet. However, they do not have broad acceptance – at the moment it is much easier for the general public to pay for a product online with a credit card than to establish a Bitcoin wallet and pay with Bitcoin, after all, everyone accepts credit cards, even if there is a cost attached, the convenience overrides the cost. The general public will use what is most convenient, while business will use what guarantees greatest profit – while crypto-currencies remain unstable and not widely accepted, the majority of businesses will stick with more traditional payment methods, adopting a wait a see approach. The advantages of using crypto-currencies in the western world currently do not exceed the convenience and certainties provided by regular banking services.In countries that have less stable economies and currencies that depend largely on remittances the advantages of crypto-currencies are significantly greater. While evangelists have talked about the advantages of crypto-currencies in places like Africa, it may be that countries located in South America, which already have developed infrastructure but are facing economic difficulties will be the first to really adopt crypto-currencies and by the popularity of the currency in Mexico, Argentina and Brazil, this looks like it is already beginning to happen.What successful brands doScouring the internet for information on the factors that determine technological take-up and adoption, you could be forgiven for thinking that there is no research on what makes for a successful tech product. Although, there are a number of sociological models such as technology adoption lifecycle, normalization process theory and Diffusion of innovations, there seem to be no guidelines and no rules for what elements technology needs to have to ensure success. It seems that our tech-savvy society blunders from one accidental invention to another without any real guide as to what will work. Incredible though this seems, given some of the weird inventions that have been made and tested in the market place, this might actually be the case, so let’s move onto a more reliable predictor for success. Let’s see what successful technology companies do and what makes their products world leaders.AppleThere seems little doubt about Apple’s place as a tech leader producing successful hi-tech consumer devices. So what is that Apple does, and how do crypto-currencies match the Apple model? Tim Bajarin (techland.time.com/author/tpbajarin/) from Time lists six things that make Apple a world leader.These are:
Crypto-currencies compared with Apple
Looking into the crystal ballIf you compare crypto-currencies to Amazon, Amazon also has its eyes clearly focused on the future. This means that the future of crypto-currency goes beyond the short lifespans of rip-off and run companies looking for a quick buck. It is important to note that PayPal when first established underwent similar regulatory problems and was even banned in several territories of the United States. But when it comes to comparing the rise of crypto-currencies with the adoption of the internet and Apple’s success it is important to note that the technology adoption curve is similar. Apple, which was a superior system to Microsoft’s DOS and Windows never achieved overwhelming success until their changed their business model and started following the principles stated above. The internet, did not take off while it consisted largely of typing prompt commands to get responses – it wasn’t until internet speeds increased and internet browsers were created that the internet gained popularity.A similar pattern will doubtless emerge with crypto-currencies. When the advantages outweigh using the current bank transfer system and when it becomes easy to adopt the currency, people will start doing so. In the meantime as long as crypto-currencies can survive and evolve there can be little doubt that their long term prospects are looking promising.
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