With success comes survivor bias, the logical mistake of focusing on individuals or things that passed a selection process while disregarding those who did not, as well as, perhaps, a superiority complex imprinted in those who survived.
As a result of their success thus far, there are a plethora of financial goods in crypto. But a scarcity of real-world products and markets. Entrepreneurs in the blockchain field do not cater to what was intended to be the most frequent type of customer. And those who do typically produce solutions that do not succeed commercially.
Financial economy and blockchain
Many businesses promised blockchain-powered goods during the 2016-2017 period of crypto startups. Including blockchain social networks, phones, logistics, legal tech, e-commerce tech, and a slew of others. The majority of these initiatives failed due to common issues such as a lack of product-market fit or a lack of network effect driving product traction.
Financial goods, which found their clients among the many seeking asset appreciation as they changed currencies, were the early winners of the blockchain product era. Millions of people store their assets on exchanges rather than using native wallets. Since these were the only solutions that provided interfaces that didn’t compel the user to deal with the chain directly until they wanted to make a withdrawal.
In fact, blockchain’s concentration on the financial sector has been so excessive that we’ve effectively abandoned a genuine economy. The majority of cryptocurrency products aiming the same type of investor. Almost every well-funded product in the area is focusing on offering answers for speculators in some form. The majority of the industry is vying for the same amount of attention.
The advent of NFTs and the rise of decentralised exchanges, for example, are examples of how decentralised finance is growing and maturing before our eyes. It’s critical to keep track of how the industry as a whole evolves from the standpoint of a product. Cryptocurrency must grow into an efficient marketplace where users can easily acquire services and products using cryptocurrency. That is, it must be used as a method of payment for a broad range of easy-to-use and intuitive products and services. Rather than merely for financial speculation.
Again and again
The market’s growth is at risk of stalling until we make bitcoin available to individuals for non-investment uses. Currently, items aimed at the same demographic have overburdened the market. We need to start placing cryptocurrencies in the hands of individuals who aren’t investors or speculators. If we want to develop the category and the market.
Blockchain-enabled goods have been rapidly developing for well over a decade. However, the industry’s most successful firms and their products are nearly completely focusing on enhancing the financial system. The most promising possibilities in this sector are those that attempt to increase the use of cryptocurrencies as a medium of exchange by placing it in the hands of non-technical individuals who want to do business using non-government-issued currencies. For example, El Salvador is a leader in this field.
The “financial product age” has produced today’s winners. Which process trillions of dollars in daily transactions. And it’s up to us, the engineers and entrepreneurs, to create the next generation of businesses and products. The finest and brightest brains in the business may be working on future generation CeFi and DeFi systems due to Survivor Bias. In truth, now is the moment to begin deploying solutions. That will take cryptocurrencies and blockchain-powered assets and put them to work as peer-to-peer currencies. That enable the exchange of goods and services, as intended.
Because, as survivorship bias predicts, the most intelligent brains and product designers in the blockchain field have been focusing on what has proved to succeed in the past “financial goods”. This offers up a huge potential to create a separate set of goods. In order to tackle a different problem in places where people aren’t paying attention.