After a crash that lasted several months, cryptocurrency finally seems to be getting back on its feet.
Bitcoin’s price went above $8,000 USD this week, more than doubling what it was worth in December of last year. Ethereum’s value has also gone on a steady incline, going up nearly $100 in the last fortnight. Ripple’s XRP, EOS, litecoin and Bitcoin Cash have also benefited from the surge.
Cryptocurrency appears to be regaining its value, despite popular scepticism. In spite of cryptocurrency’s decline, however, blockchain has been making a name for itself in 2019 and proving its survivability without crypto.
Cryptocurrency may be thriving now, but blockchain has been quietly doing so for months.
Blockchain’s worth no longer relies upon cryptocurrency
Blockchain’s true value is becoming recognised more and more. It’s decentralised, permanent, and secure. It’s ideal for data. And cryptocurrency is only a very small part of its repertoire.
This was emphasised at Davos 2019, where leaders recognised blockchain’s potential beyond blockchain, while at times also openly condemning cryptocurrency.
The rise in crypto’s value is good news to many people. However, in 2019, it means very little to blockchain’s worth. As time progresses, and the industry matures, they are becoming realised as two separate entities. Cryptocurrency may use the blockchain, but blockchain’s reputation is no longer reliant on its success.
Big companies who deal with large amounts of data, such as banks, auditing firms and manufacturing companies are beginning to investigate the potentials of blockchain. It is no longer sensationalist to suggest that blockchain could be everywhere in a few years.
In popular spaces, cryptocurrency still has a long way to go. Most shops, online or physical, do not accept cryptocurrency. However, with these spikes in value, if the increase stays consistent, crypto may become more widely adopted in the wider spheres.
In the meantime, blockchain will be powering ahead, without many of the constraints that cryptocurrency faces.
Is it one or the other?
While we want to emphasise that blockchain and cryptocurrency aren’t the same thing, that doesn’t mean both cannot flourish independently.
In fact, both have their own individual value. Merely, blockchain technology has far more potential for every industry, while cryptocurrency only applies to financial exchange.
Blockchain has potential to secure data management, trace supply chains, eliminate fraud, and even provide methods of identification to those who can’t access other methods. Its uses span far beyond this, but it’s already been trialled in government. Some countries are already planning ‘smart cities’.