Programming the Economy
With Facebook’s new cryptocurrency backed by a host of established companies and set to be officially announced next week (stay tuned for that write-up!), the blockchain hype is still present, perhaps more than ever as distributed-ledger technology (DLT) finds its footing in the digital economy.
The mania phase that we witnessed in 2017 blurred people’s understanding of the technology. Numerous studies show blockchain and DLT having huge long-term capacity in the coming decades, with projected market capital sizes possibly in the trillions of dollars.
Digital ecosystems could help power a programmable economy, democratizing technology services and automating business. This will likely evolve as scalable solutions are found and enhanced towards 2030 and beyond.
Despite the potential, most studies also highlighted that the bulk of current blockchain-driven projects will not survive. This isn’t a bad thing, though, as the small minority that do emerge will set a standard for the industry, similar to the rise of Google, Cisco, Apple, and Amazon after the Dotcom bubble.
Hundreds of companies and online services, such as Pets.com, MSN Messenger, and Myspace are now nostalgic memories that gave way to what we now use every day. Similar to the recent ICO boom and bust of 2017 and 2018, it was a huge learning curve for the entire industry.
Central Banks Will Evolve or Get Left Behind in Their Arrogance!
The financial landscape could also change. Central banks will need to evolve and change their approach in order to retain their dominance in an open and automated economy. Stablecoins give us a preview of how fiat can very easily operate on DLT. Could we witness shares of a company represented through cryptography?
JPMorgan and Facebook are just some of the companies pathing out a future where banking could be changed forever, further complementing digital assets such as Bitcoin along the way. Despite the noise in the blockchain space, the underlying potential is VERY real.
This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.