As the world has come to realize, where cryptocurrencies are concerned, past events cannot determine future circumstances, but one idea Cowen holds dear is that a price collapse does not necessarily mean the “end of a technology or its relevance.”
This year has been filled with negatives for cryptocurrencies, or at least cryptocurrency investors. Trading at insane prices towards the tail end of 2017, crypto values have fallen closer to earth, with a large majority shedding as much as 80 percent of their value.
While cryptocurrencies have a lot of use cases, including trans border payments and the creation of dApps, some neutrals still see it for its drawbacks — of which money laundering and drug trade stand at the top. Cowen, however, believes the slump in prices has led to more discussions on how to make cryptocurrencies more relevant while protecting investor funds.
Stating some of the solutions cryptocurrencies have created due to these meaningful discussions, Cowen explained:
“We’re at the point where crypto finally has to prove its social worth. But what might that mean? Imagine using crypto as a medium of micropayments to pay for media on the internet. Or perhaps you’ll use the blockchain to verify your identity, rather than telling some stranger on the phone the last four digits of your Social Security number.
This has led to quite a bit crisis talk, with some commentators prophesying an imminent crypto crash. Economist Tyler Cowen, though, isn’t sounding the alarm yet.