Crytpocurrency Lessons from Cats – Harpia Mining
In honor of International Cat Day, it’s prudent to learn the lessons of the game that crashed the Ethereum network in late 2017/early 2018: CryptoKitties! Just what are CryptoKitties? According to https://www.cryptokitties.co: “CryptoKitties is a game centered around breedable, collectible, and oh-so-adorable creatures we call CryptoKitties! Each cat is one-of-a-kind and 100% owned by you; it cannot be replicated, taken away, or destroyed.” In their heyday the rarest of CryptoKitties could be sold for five-figure sums in ETH with the highest ever CryptoKitty being sold for $117,000. This was back in the height of the 2017 bull market where price speculation reigned supreme and all anyone could see was a continuation, pushing higher and higher prices. It got to the point where transactions were increased 6x on the network due primarily to CryptoKitties. What lessons can we learn from this fad?
Above is the daily active users chart for Crypto-kitties. As you can see, the game is dead except for the most hardcore of users. The first lesson to learn is that digital stores of value need to have real meaning or they will cease to have long-term viability. Cats, while cute, don’t have the long term stopping power necessary to become a real store of value. The next lesson to learn is that even the most trivial of items can cause a frenzy in this industry, and unless you’re early on the hype train you could end up losing a fair share of money chasing after that hype.
Another key lesson to learn is that the failure of the network to scale with popularity of, for example, CryptoKitties is responsible for second-layer solutions such as the lightning network or Sharding. There is no reason to have a normal transaction with fees running into the double figures anymore, let alone $100 per transaction. Transactions that do not require top-level security can be pushed off the main chain into networks that aggregate thousands or millions of transactions into one combined transactions that does require high level security. CryptoKitties exposed to the layman a fundamental flaw in the way the Ethereum network worked, and the crypto world is better off for building a solution.
For more information on all things cryptocurrency, check out our website at www.harpiamining.com
Published at Thu, 08 Aug 2019 19:02:41 +0000
Bitcoin Pic Of The Moment
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By trendingtopics on 2019-03-28 09:13:45
