We often hear that crypto will only gain massive adoption when a so called killer app is made. It seems like everybody nowadays is talking about a killer app, not just in the cryptosphere but in gaming, in management, in fintech, in relation to FaceBook (which is considered as THE killer app of the internet). Everybody is guessing which will be the next big success story, and most developers are dreaming they will build it.It is understandable, after all a platform like FaceBook brings a fortune in revenue and world wide fame to the developer. But for all the talk about it what actually is a “killer app”?
In a simplified definition, a killer application is one which users like so much that they are willing to surmount great financial or time requirements in order to gain access to that app. This app and the adoption it causes often triggers major changes and developments in its sector and in the adjacent industries.
Brief history take-away
For gaming consoles such apps are blockbuster games, for Apple it was VisiCalc (for those whose memory does not reach so far back, VisiCalc was like a primitive MS Excel), for the PC we could say it was the internet, etc.The most important part is that the killer app almost always brings something disruptive, something new to the market - directly or indirectly. It usually happens when a breakthrough has been made - a significant problem has been solved.
But it would be wrong to think that the killer app is a new phenomenon that began with the dot-com boom. It might have not been know under this name in the past (and of course it was about hardware not software), but we can trace it far back through the centuries. Remember, this phenomenon happens when a significant problem is solved and it affects the wider industry.History buffs and engineer scan recall many such events- invention of a transistor, invention of a telegraph, discovery of simpler iron production, etc. Such events go far back, end each time they transform our civilization and society.
In this regard, one could say that inventing the blockchain (and bitcoin as its first application) was akin to the discovery and first use of iron. The app which will bring crypto to the masses will be akin to discovery of simpler iron production.The letter is nowadays an almost forgotten event, however it opened the floodgates to industrialization - massive weapons production, use of iron in civil construction which enabled us to build skyscrapers and thus build megacities, and ultimately it paved the way to modern steels which enabled us to own a car, fly and land on the moon.
At first glance the two events may not look too similar, but let us break them down:
- Technology exists but is too complex to use for everyday things
The single breakthrough that crypto needs to make is to bridge the gap between suppliers (vendors) and users (consumers), as currently it focuses on one at the expense of the other. The catch is that the solution must be so simple to use that there is virtually no learning curve.An app that manages to do the above should eventually become the killer app, however we must also take into account that inventions are now popping up faster than they have 30 years ago and certainly much faster than they have in 1700’s (when cheap iron production was invented). That is why a to-be blockchain killer app must carry an especially enticing incentive for its use, otherwise it will fade away before it reaches a critical mass of users.All sectors are ripe but some are sweeter
Since cryptocurrencies were conceived for replacing banks, it was initially postulated that their killer app will be for the financial industry. However knowing how slow governments and institutions are to adopt new things, many turned their eyes towards the gaming industry. Afterall it has been known to drive adoption of new hardware and to always strive for novelty. But despite numerous attempts there have, thus far, been no significant results. In our view blockchain in the gaming industry does not solve a real need, it solves a “want”. Solutions to “wants” are usually harder to sell - and thus gain adoption - then solutions to actual needs are. Thus the gaming industry might not be the first to produce a killer blockchain app.
When looking for the next big thing it often helps to turn attention to the industries that have not seen a major “upgrade” in a long time. The advent of the internet disrupted and changed almost every industry, however a few have adapted to it without massive changes. These industries are the prime candidates for a blockchain based transformation.
One such industry is tourism, in which the internet only changed the way hospitality services providers market themselves, but it has not changed how they conduct business, nor has it changed the tourists’ vacationing experience. In fact we could say the latter two remain largely unchanged since the golden years of the ancient Roman empire. Yes transportation has changed, and we gained air-conditioning, but our desired activities and hoteliers’ duties and responsibilities (and the way they carry them out) stayed largely stagnant.
When we inject blockchain into the tourism industry, we obtain new potential that can change not just tourism but our entire civilisation. Just like injecting oxygen into molten iron (to obtain quality steel) did 180 years ago.The future of the $1.8 trillion tourism sector
The first effect is that travel expenses can decrease by 25%, even 30% in some cases; due to nullifying OTAs’ fees. Such a high discount opens travel to tens of millions of new people and enables tourists to travel further, thus experiencing new cultures, meeting new people. In general this has highly positive effects on achieving global peace and prosperity.Further, cryptocurrencies allow anyone to book any hotel anywhere in the world, without restrictions, without currency conversion fees and without risk of diverted transactions. With this even hoteliers from poorly represented countries or from countries without external marketing and payment infrastructure have an equal opportunity to do business as mega-corp hotel chains.
Since all transactions are public and permanent on the blockchain, a tourist booking through a blockchain app has an indisputable proof about the ordered services and payments for them. Thus the tourist carries no risk of losing the booking or being defrauded. For the same reason hoteliers carry no risk of being illegitimately sued or extorted by a customer who claims it paid for a higher/different service.Stemming from the above, since all payments are on the blockchain, both the tourist and the vendor need nothing but an app to access all related data, validate them, provide proof of purchase to a third party, and even satisfy all the tax requirements. Vendors thus save a fortune in time and lower legal risks, and tourists are spared the paperwork, headaches with lost or forgotten documents, etc. It is a win-win situation for all. In time this system could be extended to also encompass the industries adjacent to tourism.
This is a big opportunity for the cryptosphere as tourism sector alone is worth ~$1.8 trillion in yearly revenues, and together with adjacent industries it totals to ~$5 trillion. This is even larger than the gaming industry and this sector has a far more tangible effect on our daily lives than gaming. While the conventionally-oriented competition will certainly not give up their profits easily, the sector has great potential for crypto, and could really hold the key to its mass adoption.
Like bitcoin was the first mover in crypto, XRP was the first mover in banking and GAME was the first mover in gaming, the first mover in tourism is Tryvium (TYM). The main entity behind it is Tryvium Company LTD and so far it is also the only cryptocurrency and company in this large sector. For all who are interested in more about the tourism sector and blockchain, their Whitpaper covers the topic in more detail than we can in this article.
We hope you enjoyed the article and feel encouraged, that for tourism, just like for the financial industry and gaming it is just a matter of time before a killer app is created. But no matter which industry is the first, the whole world will reap the rewards, not just crypto enthusiasts. Until then, every developer, proponent and investor does his/her part in bringing our beautiful crypto vision to life.
It is common knowledge that the cryptocurrencies on the cryptocurrency exchange are volatile and can fluctuate at any given period of time. The world most famous cryptocurrency, Bitcoin, has demonstrated this volatility in recent time.
Not too long ago, sometimes in December of the year 2017, the bitcoin was reportedly valued at about $20,000, and its value has plummeted to as low as $4,950 in November of 2018. It has somehow climbed back to some figures above $5,000.
How Bitcoin Price will Fluctuate
Famous Bitcoin investor, Tom Lee, still holds true to his beliefs of the world most popular cryptocurrency, Bitcoin, climbing to it predicted value of about $25,000 in before the end of 2018. He also predicted that the price of Bitcoin would be as high as $125000 come 2022. Yeah, he actually predicted those bullish figures, and he did back up his claim with a number of reasons. Amongst these reasons, one reason, in particular, stood out and that is the cost of mining the Bitcoin.
Asides from Tom Lee, there has been a number of other predictions and calculated projections on how much the Bitcoin will be valued at as time goes on. As expected, these predictions by the experienced and seasoned figures in the business of Bitcoin seem to be at different ends of the spectrum.
Aligned with Tom Lee, John McAfee strongly believes the Bitcoin will be valued at $1 million in 2020. After his initial prediction of $7000 was surpassed last year, he raised his projection to $1 million.
Jeet Singh, the famous cryptocurrency portfolio manager, has affirmed in his own rights that the Bitcoin still has the potential of reaching $50,000 before the end of 2018. He, however, warned of the volatility of the market and possible fluctuation could still occur.
The other end of the spectrum totally disagrees with these predictions. Kenneth Rogoff, A Harvard professor, and Ex IMF chief holds strong to his belief that the Bitcoin will not be valued not more than $100 in the times to come. Although his prediction is for about ten years from now, he strongly believes that the government will clamp down on the anonymous virtual currencies that are available.
Kristjan Deikleva, a Swiss-based financial hedge expert, believes that stability for Bitcoin will only be recorded just after ten years from now. Tough call, but he attributed his inference on the acceptance of Bitcoin in the Asian market.
There are many more predictions and trends as it concerns Bitcoin but recently, the sharp rise and fall of this digital currency only point at one thing we know, that is, the digital currency is just as volatile as it was always predicted to be.
Reasons For The Protracted Stagnation
The protracted stagnation of the Bitcoin and the other major cryptocurrencies and digital currencies on the internet can be strongly attributed to a number of things.
One of the major reasons for this stagnation is the different governmental stagnation that has plagued the cryptocurrency market for so long. The different government of most countries still haven’t seen Bitcoin and the other cryptocurrencies as a viable currency thus still viewing them as a commodity or product that could be bought or sold. For this sole reason, there has been a lot of restrictions to the growth and development of the cryptocurrency market.
Also, you know how some cars and other goods are banned in certain countries but can be used in others? Well, this is the case for the cryptos. Some countries are the hub of cryptocurrencies, and they are pushing for the acceptance of this decentralized system by the other countries.
Another major reason that has caused the protracted stagnation can also be linked to the list of dead Cryptocurrencies that didn’t scale and died off. This, of course, reduces the amount of investment in developing this market and the scaring away of other investors from the market.
Major Causes of the Sharp Drop in Bitcoin
The general cryptocurrency market has seen a handful of volatile movement in 2018. Following the announcement by Google earlier this year on its banning of all cryptocurrency ads, the price of cryptocurrencies dropped including Bitcoin.
Also, Bitcoin is a product that is traded for other services. This automatically makes its value dependent on the services that are being demanded. The demand and supply of bitcoin on the cryptocurrency exchange could also cause the sharp drop in the price of bitcoin.
This major crash may also be attributed to the panic sell-off from top bitcoin holders which triggered a lot of sellout in the exchange.
The recent volatility of the cryptocurrency market and the Bitcoin especially can be attributed to a number of factors which are but not limited to:
1. The fluctuation of prices
2. Standards and policies for virtual currencies
3. Value of bitcoin on the exchange market as compare to other cryptocurrencies