@rorobyte is a web3 builder (@epist.xyz), tech investor, and dog parent who studied Business @StanfordGSB and Computer Science @UWaterloo
Ever since the invention of Bitcoin and Ethereum, the crypto community has been contemplating different applications of the blockchain technology, from real estate and healthcare all the way to energy and sustainability. The promise of this revolutionary technology seemed far reaching (to the enthusiasts, at least).
However, at the time of this blog entry (early 2022), most of those visions remain just that, visions. Despite the advances in blockchain infrastructure over recent years, significant challenges (e.g. usability and scalability) must be overcome before mainstream adoption is possible. Therefore, the use cases discussed below are largely popular within the crypto community only.
As with any new technology, there’s just as many critics as proponents of crypto and blockchain. While some criticism is valid, others are not. Below I offer my views on some common criticisms we hear in the media today. My thinking also evolves as I learn, so please don’t be surprised if I change my tune in the future. Also, nothing below is investment advice.
“Bitcoin [or any other cryptocurrency] is just made up and shouldn’t have any value”
❌ Sure, Bitcoin is made up, but so are the US Dollar and other fiat currencies. The US dollar has value because everyone believes it has value, and thus uses it as a medium of exchange and store of value. While cryptocurrencies may be overvalued at a given moment, it doesn’t mean they have zero value.
“Blockchain is too slow / expensive / hard-to-use to be useful”
🟡 Yes, agreed; however, the world’s first computer was a huge mainframe machine that was slow, expensive, and hard-to-use. I wouldn’t dismiss a technology based on what it is today.
“NFTs are just JPEGs and have no utility (thus worth nothing)”
❌ Image-based NFTs (incl. 2D, 3D, animated) derive utilities from two sources: basic artistic value (it’s pleasurable to look at pretty things) and status symbols premiums (owning a Bored Ape makes one appear cool to friends / social media followers). Note some NFTs give owners in-real-life rights such as access to concerts or museums, which clearly have utility.
“But I can just copy and paste those NFT pictures… ”
🟡 Yes, you can! You can also print off Mona Lisa, but your printout is not nearly as valuable as the original. It’s all a social mind game...
“There’s a lot of hype and bubbles in crypto / NFT / DAO etc.”
✅ Agreed. While the technology is promising, it’s still early. Not all of it is hype and bubble, but a lot of it is. Tread carefully.
Two of my classmates and I have been doing independent research into crypto entrepreneurship, under the guidance of a professor at the Stanford Graduate School of Business. We’ll explore the similarities and differences in entrepreneurship journeys between crypto startups and other tech startups in the next few entries.