Crypto and the Technology hype cycle

Writing this just a day before the US presidential elections and reflecting on Y Combinator’s latest Request for Startups (RFS) document, I find myself contemplating the technology hype cycle and the ever-evolving landscapes of AI and crypto.

As an entrepreneur and crypto enthusiast, I’ve had the privilege of witnessing these technologies’ evolution over time. Currently, it seems to me that AI is at or perhaps close to the pinnacle of its hype cycle. Everywhere I look, AI-powered solutions are being heralded as groundbreaking innovations—not just in tech circles but also in mainstream media, among investors, and even by friends outside the tech sphere. The real work that remains to be done seems to be going to be taking AI to many of the traditional business workflows of the past and enhancing worker productivity on mundane tasks.

While I’m genuinely excited about AI’s potential to drive innovation and address real-world challenges, I’m also mindful of how the hype cycle can be a double-edged sword. It can attract vital attention and investment but also foster unrealistic expectations that may lead to disappointment if unmet.

Conversely, crypto appears to be at a low point in its hype cycle. I recall when Bitcoin and other cryptocurrencies were all anyone could talk about—prices soared as everyone rushed to join in. Now though, interest has cooled considerably. This year it seems that for some reason, even with investments from major firms like BlackRock, the market is still quite cooled and giving no signs of life outside of the market leader bitcoin. Which seems weird for many reasons. Even search trends for crypto on google trends are looking terrible compared to the last few years.

Having followed crypto for some time now, I’m somewhat disheartened to see its current state. Despite this downturn in enthusiasm, I still firmly believe blockchain technology holds transformative potential regarding our understanding of money transactions, especially for helping the people without access to stable financial products and building a trust-less financial system for global commerce.

I usually refrain from making predictions, but perhaps we might witness such a resurgence for crypto in the near future. One factor that could potentially influence its trajectory is the outcome of the upcoming US presidential election (Donald Trump announcing his support for bitcoin?), but I caution against speculating too much on this front.

Regardless of the hype cycles, I encourage all engineers and developers to keep building. The true test of a technology’s worth lies in its ability to solve real problems and create tangible value for users.