The closure of Bitconnect certainly made news around the world. The mainstream media was all over it with glee. Anything that helps their agenda of showing how cryptocurrencies are a scam is welcomed by them.
That said, this was a great event for the cryptoworld. It was also wonderful news for STEEM.
This might sound a bit counter-intuitive but it is absolutely necessary. The cryptocurrency industry is in the early stages. It is not going to be a straight path to success. Some of the greatest successes in the world come as a result of failure. It is through adversity which an industry gets stronger.
Many are trying to draw a parallel between the cryptocurrency market and the Internet bubble. Obviously, they are trying to correlate the pricing action of each. Whether this is true or not in the long run remains to be seen.
What is similar is the path to success that each was and is going through. The Internet age also had its share of failures. There were legal actions which made headlines. At one time Netscape and Dogs.com were big names only to end up in the toilet.
None of the failures that took place during that period stopped the progress of the Internet. The same is going to be true with cryptocurrencies. The failure of Bitconnect is nothing more than a bump in the road. This will not derail the industry. The FUD is mostly created by the media so it is best to ignore it.
Even the bursting of the dot.com bubble did not stop the progression of the Internet. Withing a few years of that, Facebook was moving the world into the social media realm. By that time, the early days of the Internet and the struggles that went along with it were but a distant memory.
Bitconnect woke some people up. Things are not all rosy in this industry. While there are tremendous opportunities to make money in this sector, not everything is an opportunity to make money. Some things are best left untouched. Those of us who are around a while understand there are a lot of garbage tokens out there. We are going to see more headline of failures which will be to our benefit. Unfortunately, like the Internet with dog.com, we need to clear out some of the trash.
Moving to the other end of the spectrum, we have STEEM. In my view, this is the antithesis of trash. Steem is the top blockchain at the moment focusing upon a sector that should ensure incredible growth. "Tokenizing the Internet" opens up a lot of doors. There are billions of websites out there which can implement the content/reward system that exists on STEEM. It is going to be fun to watch all the applications that are created on this blockchain.
A situation like Bitconnect only makes a project like STEEM stand out even more. When you see something that crashes, the contrast of quality is further emphasized. The steem blockchain is on fire right now. Unlike many other cryptocurrencies, I do not believe the price action of the token has got ahead of itself. In fact, I think it fair to say that STEEM is under priced. This is one token that did not experience a bubble (if one existed).
While the entire cryptocurrency world is unbelievable to many since it is revolutionary, the bottom line is that STEEM is not some pie-in-the-sky thing tossed out there. We already have real world applications that are used by tens of thousands of users each day. The upcoming Hard Fork is going to bring in more people by automating the sign-up process. Add in Smart Media Tokens and you have a recipe for enormous success.
It is easy to mentally turn a temporary situation into something permanent. Nevertheless, when it comes to the world of cryptocurrencies, even though it was a difficult month and a half, the future is very bright. While situations like Bitconnect get the headlines, projects like STEEM are forging ahead with answers to existing problems. I often mention how STEEM is going to change the world and this is one of the reason it will. Development is consistently moving forward providing answers that humanity needs.
Bitconnect is not the last failure we are going to witness. As an industry, we need these events to move forward.
And through it all, STEEM will keep forging ahead.
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