Cryptocurrencies and the blockchain technologies growing up alongside them are certainly something that hold huge potential – potential that is already being realized in many sectors. 2017 and 2018 both saw big rises in the adoption of blockchain technology in sectors like logistics and HR, as well as the growth in interest in cryptocurrencies like Bitcoin and Ethereum. Naturally, this also means that there are lots of new projects, ventures and businesses looking to gain funding for crypto and blockchain projects at this point in time. This crypto press release site is a good place to stay informed about new ICOs and projects within crypto.
Being part of the blockchain movement does indeed give companies a chance to innovate, and some of the projects coming together now do of course have the potential to make big waves. However, there are several problems that anyone looking to emerge as a crypto-entrepreneur will encounter, and these are, at present, not small challenges. Here, we take a look at some of the biggest challenges crypto-related start-ups are facing in 2018:
A Lot of Hyped Projects That Fail
Crypto and blockchain are buzzwords that can make it easy to make a fairly nebulous concept sound exciting. However, because the technology and market are so immature right now, it is genuinely hard to predict which cool-sounding ventures will actually deliver anything, let alone how successful they will be when put to the ‘reality’ test. There is also, of course, the issue of scammers. People entering the market with crypto-related ICOs this year are having to rely on regulatory bodies to remove these from operation, and also on respected platforms like Bittrex not to list them. However, even the regulators are often dealing with uncharted waters when it comes to identifying businesses or operations that are not legitimate in this sphere, and so naturally some slip through the net. These factors combined can make both investors and the public as a whole somewhat wary of bold, important-sounding crypto projects, even when the entrepreneurs behind them are acting in good faith.
Blockchains Are Not Yet Mature Technology
Projects that rely on existing blockchain technologies, or promised ones, are working with technology that hasn’t yet reached a state of maturity ‘in the wild’. As with any technology, it takes a few years to be able to see the unexpected effects of its introduction, and to iron out kinks in its implementation. There are lots of blockchains out there – in some ways making it even harder to design projects that incorporate them – but many are still somewhat theoretical, and may not stand up to the real-world applications they were designed for. This is a natural stage in the emergence of anything new in tech, however it does present something of a gamble to people who want to get in before the technology is seen as stable and mature. Entrepreneurs have to choose the right balance between being innovative and reducing risk. There is no right or wrong approach to this, however, it does mean that many projects currently proposed or started will fail, and this may have the knock-on effect of encouraging a bearish market.
Just as the technologies themselves are still in the early stages of becoming a major part of life, the regulations that concern them are also having to evolve to keep up – something that can make operating in the crypto-market a bit unpredictable. Different countries have different policies too, making location and keeping tabs on global regulations another challenge for people operating in the cryptocurrency sphere.
These challenges do not stop blockchain from being a great current breeding ground for innovation, but they certainly mean that it is far from the golden goose some would-be entrepreneurs may be seeing it as, as it continues to rise in interest.