Two mental steps towards cryptoasset diffusion
I see diffusion of cryptoassets as a two-step process where we move from one mental model to the other. These models are:
- Acceptance of cryptoassets in general: Initially, people must accept the concept of cryptoassets per se.
- Acceptance of one particular cryptoasset. Secondly, once people understand cryptoassets and believe they are better than whatever they replace, people must accept that one particular coin for that one particular use case.
Currently, we are at step one. Today’s cryptos are thus confronted with two tasks; convince people that their general idea makes sense and convince people that their particular implementation (i.e. their crypto) makes sense. For both, especially the first, a lot of resilience is required and many won’t have that. More importantly, however, is that once we have crossed step one newcomers could come in with their new implementation and successfully process step two based on the work of the previous generation.