‘Bitcoin is a bubble’, it’s the phrase that seems to hit more crypto-headlines than anything else and is usually followed by a tepid report regarding some vague tech-expert who is no doubt trying to spread a bit of FUD, in order to look informed, in tune and in order to make a big of money through publicity.
This latest statement from Apple Founder, Steve Wozniak, seems to be a little more serious, which is why we want to look in to it.
In essence, Wozniak is alleged to be calling blockchain technology a bubble, stating that Bitcoin is just a small part of it and on the whole, blockchain will collapse.
Just as a reminder, here’s a quick ‘definition’ of a Bubble, by Investopedia:
“Bubbles form in economies, securities, stock markets and business sectors because of a change in investor behaviour. This can be a real change — as seen in the bubble economy of Japan in the 1980s when banks were partially deregulated, or a paradigm shift — which took place during the dot-com boom in the late 1990s and early 2000s. During the boom, people bought tech stocks at high prices, believing they could sell them at a higher price until confidence was lost and a large market correction, or crash, occurred. Bubbles in equities markets and economies cause resources to be transferred to areas of rapid growth. At the end of a bubble, resources are moved again, causing prices to deflate.”
See more for yourself, here- https://www.investopedia.com/terms/b/bubble.asp
In essence, a bubble grows and grows until it reaches capacity, then – ‘pop!’
According to Albawaba.com, Wozniak has said that whilst he believes blockchain technology does have real potential to grow, he worries that decentralisation makes it untrustworthy, meaning a bubble effect could occur. According to Albawaba.com, Wozniak says:
“It [the internet] was a bubble, and I feel that way about blockchain. If you look now you say all that internet stuff happened, we got it, it just took a while. It doesn’t change in a day, a lot of the blockchain ideas that are really good by coming out early they can burn themselves out by not being prepared to be stable in the long run.”
See the full report for yourself, here-
Okay, so Wozniak doesn’t want the blockchain to be a bubble and he believes blockchain technology does have a great future, however, he airs some major fears that due to the mystery surrounding blockchain technology, society may not catch up with blockchain technology fast enough. The supply of blockchain may outweigh its demand and thus, when that happens, the need for blockchain may burst, making the technology redundant.
This is a very specialist outlook, but I suppose what Wozniak is saying does ring true. He does however fail to discuss how blockchain technology is adapting to the real world and is becoming more user friendly and accessible. Granted, it will take a few more technological innovations before blockchain is taught as a subject in standard schools, but, movements are being made to make sure this does happen eventually. Wozniak no doubt believes time is against us, but the blockchain should hopefully be one step ahead of the game at this point.
Featured Image Original Source: Wikipedia Commons