Ever wonder what the driver is behind the growth and value increases in the crypto-currency world. Over the last couple of years, it has been an explosive growth toward the upside. I think this structural movement underneath the market has significant meaning which most people are down-playing.
Below is an indication of how many users have created wallets on the blockchain over the course of roughly three years. I say three years because the wallet technology really didn’t hit the public until January of 2014. The years following showed exponential growth with more investors plowing into crypto-currencies like Bitcoin and Ethereum.
Blockchain Wallet Growth
Some people may say that the chart above is a lie or deceiving. The number of wallets that aren’t being used could skew the data they may argue. However, the exponential curvature that has happened in such a short time frame kind of defeats the other sides argument. Most people will get skin into the crypto currency game when it is already too late and the major gains have already been made. The exchanges making Bitcoin and Ethereum more accessible are helping these gains. For example, Coinbase went from roughly 2 million users at the beginning of 2015 to over 6 million in 2017 already.
Why Facebook is Similar?
In the early phases of Facebook, it started off with a similar kind of S-curve trend. When a new technology is set to explode it generally starts an exponential curve rather than a slow and steady wins the race curve.
Now the key to any growing technology is the need to be in it. For Facebook, everyone wanted to connect with the world so it changed the game of social. It allowed people to tap into everything other people were doing along with finding entertainment on the wall daily. The blockchain technology is similar because people have the same habits as with Facebook which is known as FOMS (fear of missing out). When I told my family I bought Ethereum at $89 and one week later it was at $125 they took notice. Each of them put money into an account because they wanted to be in on the technology.
Conclusion: A small amount of money can go a long way if you pick investments that will boom over time. Blockchain technology will eventually change the future and it will incorporate artificial intelligence to handle the transactions. Maybe it is too early to judge but the key to every great idea is to be the first mover.