The Crypto Mania: WHY PRICES ARE NOT DRIVEN BY USAGE.

Within the last month we've witnessed crazyness all over the cryptomarket:
Prices jumped to all time highs and dropped by 50% in the blink of an eye.

Let me write down for you guys this awesome quote from @louisthomas 's latest video:
"Bitcoin is a tool for freeing humanity from oligarchs and tyrants dressed up as a get-rich-quick scheme"

Yes, this market has been infested by whales and speculators not many of which are even interested in cryptos and blockchain technology. They are in it just for the money.
Remember, whales go where money are and where money can be made.

Yet this is not a treath to cryptocurrencies: whether people are in it just for the money or not, they are taking part of this revolution.
As Cedric Dahl said, there is a correlation between speculators and technology adoption and in this case, in the case of cryptos, we are seeing a much more dramatic speculative mania just because the market is accessible by anyone that has an internet connection.

50% of World's population can be categorized as Internet users.
Less than 1% of these internet users, uses internet money (cryptocurrencies).

So although we've seen people dive in the market just to make some money, we haven't seen anything yet!

To put this into a nerdy persepctive, here's a classical adoption curve.

I've seen this all over my university books (I'm a Marketing student other than a cryptonerd investor and analyst) and there is nothing better to explain how adoption works.

The first 15% are the ultra early innovators and early adopters, giving birth indeed to the Early Market

1. Innovators:
   

2. Early Adopters:
   

Then we encounter the so called chasm: It’s the point between the early adopter stage and the early majority stage.
Crossing the chasm means breaking into the mainstream market. As you could expect, the most challenging of the adoption curve stages.

One reason why crossing the chasm is difficult is that as a product, or in this case, a technology ages, people tend to have higher expectations.

In the cryptomarket we already see signs of high expectations. However, these expectations are slowly beeing fullfilled.
Look at Lightning Network and Segwit:

Growth of number of channels on the lightning network enche more speed:

Decrease of transaction fees:

Anyway, since internet money users aren't even 1% of the internet users, we aren't even close to passing the chasm enche we aren't even close to being mainstream.

2018 will be a very curious year for blockchain technology.

So, what do you guys think? Let me know in the comments!

Also, please consider upvoting and resteeming this post if you found this content valuable.

Till next post, as always...
Happy trading, stay safe!

~ Steven

PS: Check out @louisthomas (@dtube and YouTube) and Cedric Dahl (YouTube). They are among the best crypto content creators out there.

Imgs credits: crazyegg.com ; Armin van Bitcoin (twitter)

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