Were it not for the power of irrationality, cryptocurrencies would likely be an obscure asset class circling the extreme fringes of the financial world and anarchist chat rooms. But thanks to early adopters willing to gamble on the unknown and newcomers ignoring the risk of a market bubble, no conversation about the future of finance -- and well, anything-- is complete without mentioning cryptocurrencies and their underlying distributed ledger technologies (DLT), such as blockchain.
DLT and the human creative power driving Web 3.0 could radically transform economies and societies, provided there’s mass uptake. But the bubbles and bad behavior that feed on irrational behavior could undermine faith in DLT and crush its promise. Karma Insider Chris White, the CEO of ViableMkts, which provides strategic guidance for building financial market technology, had some thoughts on what’s been driving that dynamic. “What the market’s really looking for en masse holistically is how do we properly apply this technology in such a way that it can be additive to the growth process around the global economy.” He adds, “The mania, I would call it more of the irrationality, it's more of a testing phase. And you know what happens when you're testing something? Some people are going to get hurt. There are going to be some mistakes. But I think we're learning as we go.”