Isn’t crypto over? Wasn’t there a crash? Isn’t blockchain old news?
In December 2017, the market capitalization of cryptocurrencies surged to around $800 billion. In the next year, as we all know, crypto declined precipitously. About 12 months later in November 2018, that figure had sunk as low as $182 billion. But it’s notable that, even after this decline, prices would have still been on an upward trajectory year over year had it not been for the wave of speculation in late 2017.
However, it’s important to decouple cryptocurrency from blockchain when thinking about long-term investments. Cryptocurrencies may be subject to speculation, but blockchain technology and decentralization are more grounded. When we think about blockchain technologies and where they are heading, we pay the most attention to the actual decentralized apps (dApps) that are coming out.
The core of blockchain technology is that it allows us to build such applications, which are not centralized the way normal applications are. You might think of dApps as consumer-facing only, but enterprise and government applications of blockchain also fall under this umbrella. Looking at the state of dApps, there are at least 6 major reasons why we think blockchain is just getting started:
- Better use cases & UX
- Increasing resources and talent
- Rise of private blockchains
- Normalized funding
- Maturing blockchain ecosystem
- Friendlier regulation
Because of these trends, we are bullish on top teams in this space in the mid- to long term.