Was 2017 REALLY the Year of Crypto?

2017 was, according to many, the year of blockchain technology and cryptocurrency. New platforms and currencies have sprung up all over the globe to feed the hungry beast that is the crypto industry, with ICO’s like Tezos, and Bancor raising simply stunning sums. Now over 1,300 cryptocurrencies are available and the Bitcoin rollercoaster has taken us all on a wild ride. In addition, with a greater-than 700B market cap produced by these cryptocurrencies, the last 12 months have in many respects far exceeded expectations.
But how about the year ahead? Is the party over or can we expect even greater success for the worlds of blockchain and cryptocurrency? To answer that question, we need to look at the ways in which 2017 laid the groundwork for future industry growth but also in some ways failed to meet our expectations.
For example, a major conversation starter for many a crypto-geek over the past year has been the looming specter of regulatory investigation from bodies such as the SEC, and FINMA, and the FCA.
Action has to be taken by industry players, to prevent the industry being taken over by scammers, forcing the hand of the regulators. In fact it is essential to self-regulate in order to keep regulators at bay and boost transparency and trust in in the industry, for the sake of future growth. However, 2017 saw little significant forward motion on this front.
Even so, some modest progress has been made in the last year. Projects have been initiated to promote self-regulation from bodies like the Crypto Valley Association and the Waves Platform, which is setting new codes of conduct for ICO’s with the participation of Deloitte CIS, the ICO Governance Foundation and the Ethereum Competencies Centre. This could be the way forward for setting established industry standards in 2018.
2017 was also the year many of us hoped to see inter-chain operability, with the realization of the dream of multiple connected blockchain networks in parallelized chains. Polkadot has led the charge but we aren’t quite there yet. Still exciting progress has been made and the eventual implications for the industry are incalculable.
Another area in which progress was arguably limited is with enterprises from multiple verticals implementing blockchain technology. 2017 did not see the level of blockchain adoption by major players across various industries that many of us were hoping to see.
A number of factors may have contributed to this, not least of which is that more traditional industries may be less inclined to invest in “unproven”, emerging technologies that can’t scale.
Bitcoin and the buzz around ICO’s as profoundly distruptive and revolutionary, in addition to the uncertainty with regard to regulation has deterred many in more conservative enterprises, for whom “if it ain’t broke, don’t fix it”.
Many also simply don’t yet really understand how blockchain technology works as the broader market isn’t yet educated enough. They hear blockchain, and think cryptocurrency, with all the volatility and uncertainty that the association entails. Connotations of fast cash and wild speculation have so far proven hard to shake.
This however is rapidly changing as efforts are being stepped up by heavy hitters cross the industry to explain the difference and show the breadth of applications for blockchain technology.
2018 could well also see a great deal more clarity in terms of regulation, particularly as the token sale fever dies down and enterprises see that blockchain and cryptocurrencies are here to stay.
Without a doubt, 2017 took a number of important steps in the right direction to promote the growth of the crypto industry, but until we have more regulatory certainty and a better educated market there is definitely more work to be done in the year ahead.