In simple terms, Cryptocurrencies are digital currencies, which is decentralized and private. Bitcoin is the most popular among them , which might be heard by most of the people as compared to other common cryptos like Ethereum, Tether or Monero, which comes as one of the top 10 cryptocurrencies in the world, but not as popular as Bitcoin.
So, what drives popularity? Obviously, Users! Did many people know about Bitcoin in 2009 or rather 2010, when it was created? No, not as many as today. Similarly, there are other cryptocurrencies like Ethereum and Ripple, which sets their position alongside Bitcoin, which are eminent members of the ball game, which are slowly but surely increasing their real-usage cases.
Let’s look at an extravagant analogy!
Uber Technologies Inc, was founded in 2010 when people were very skeptical to avail of the cab service. But, now after eight years, Uber has gathered around 17 million users in the world. At least, one out of three people in the US has Uber installed on their phone. People are always non-supportive about transformations, but when they get the feel of what a transformation can do, how it makes their lives easier, they are the ones who get habituated by the change. The point is – is cryptocurrency really the future?
Similarly, since the evolution of the Internet in 1991, it has disrupted the beings and now, kid you not, nobody can imagine living a day without internet as it has become the oxygen to sustain one’s livelihood. Cryptocurrency also started with nothing, but now there are around 21 million users or more. As people are getting to know the technology behind it, i.e., blockchain and the pros, that is driving them towards using virtual currencies. OnChain Transactions are increasing at a high rate for BTC and ETH, which shows the increase in the adoption rate.
Recently, Adena Friedman, the CEO of NASDAQ said that “cryptocurrency deserves an opportunity to find a sustainable future in our economy”. She believes there can be two outcomes, considering the current scenario.
- Either there would be more use cases in the coming days, with sustainable commercial progress, like the internet.
- Or, it fails in getting adopted, like the Segway
Vitalik Buterin’s Pessimistic Statement As a Result Of Ethereum’s Downfall?
Recently Vitalik Buterin, the creator of Ethereum- the world’s second-largest cryptocurrency has created abuzz in a show, by stating that the Blockchain industry was about to hit a “ceiling.” He added.
He later clarified his statements in a twitter post that by saying “no room for growth”, he meant that there is no room for a 1000X price hike. The current Crypto market is lesser than $200 Billion which would mean that by 1000X growth the market cap should be $200 Trillion, which would mean that 70% of the world’s wealth will move to Crypto assets.
Reactions immediately began labeling Buterin as a doom-monger and pessimist, who thought the halcyon days of the entire cryptocurrency industry had come and gone.
He further tweeted that:
“If you speak to the average educated person at this point, they probably might have heard of blockchain at least once. There is no opportunity for yet another 1,000 times growth in anything in the space anymore.”
The State Of Frenzy In the Crypto World
Vitalik added thinly-veiled criticism of TRON founder Justin Sun, who subsequently committed to his cryptocurrency growth forecast.
Vitalik’s statement drove the crypto space crazy as everybody started refuting this statement, especially Justin Sun- TRON’s creator.
Justin Sun was rather quick to respond to Vitalik’s taunt on his nature of hyping up Tron every now and then. Sun responded suggesting he firmly believes that the Cryptocurrency market will hit $10 Trillion market cap before Apple or Amazon -which already has hit a Trillion Dollar valuation recently.
Binance CEO Changpeng Zhao’s Confident Comeback
Changpeng Zhao is not the only industry leader to have refuted Vitalik Buterin on the issue of the future growth trajectory of crypto. Joseph Lubin, who co-created Ethereum along with Buterin, also went on record saying that he doesn’t agree with his ex-colleague.
“I still disagree with this. I will say ‘crypto will absolutely grow 1000x and more!’ Just reaching US Dollar market cap will give it closer to 1000x, (which is just one currency with severe restricted use case), and the derivatives market is very much bigger.”
Cryptocurrencies: Yet Another Disruption
Is Cryptocurrency the real future? Well, the adaptive forces surely lead to optimism.
Let’s have a look at some of the predictions given by the market traders or enthusiasts:
- Venture capital investor- Tim Draper has predicted that the total cryptocurrency market capitalization will hit $80 trillion in the next 15 years. (Cryptocurrency Future value)
- JP Morgan CIO Lori Beer enunciated at a press conference in Buenos Aires that blockchain will “replace existing technology” in the upcoming years, he said that JP Morgan uses blockchain technology to simplify the payment process and store customers’ information related to KYC (Know Your Customer) policy.
- Kim Dotcom, an entrepreneur, and MegaUpload creator repeated his belief in Bitcoin over fiat currency, telling fans directly to “buy cryptocurrency”, and advises to avoid dollar as it is going to become worthless.
- Robert Kiyosaki- the author of the best-selling finance book “Rich Dad, Poor Dad”, expressed his concerns about the fact that cryptocurrencies will eventually replace US dollars. (Cryptocurrency future of money)
- The CEO of the world’s largest stock exchange- NYSE claims that bitcoin has the potential to be the world’s “first worldwide currency,” and he’s throwing his firm’s weight behind an ambitious plan to make that a reality.
Now, let’s take a look at the use cases and how the institutions are adopting cryptocurrencies: Cryptocurrency Future Worldwide
- IBM, Citi, CLS, Barclays formed a partnership to launch blockchain app stores for banks. LedgerConnect- a Distributed Ledger Technology (DLT) platform is the result of a cooperation between foreign exchange settlement provider CLS, enterprise software giant IBM, and nine financial institutions, including big names such as Citigroup and Barclays.
- A Singapore based blockchain startup – CyClean is launching a fleet of blockchain-enabled electric vehicles that would mine crypto as users travel. The company intends to minimize the carbon emissions and to reward people for doing so.
- Samsung SDS, the IT part of Samsung Group, recently announced that it would use its Nexledger blockchain platform to build an export customs clearance system for Korea Customs Service, actively.
- Iran has announced that they will start treating cryptocurrency mining as an industry. This regulation comes after increased pressure on the country enforced by a change in economic sanctions imposed by the United States.
- Tech giants Alibaba and IBM are vying for the top spot on a new list that ranks global entities by the number of blockchain-related patents filed to date. China’s Alibaba only just seals first place, having filed a total of 90 blockchain-related patent applications, whereas IBM has to date filed a total of 89. In third place is Mastercard — with 80 filings, followed by Bank of America, with 53.
- The new Builderium project, based in Switzerland is developing a global platform for making deals and assessing parties to bring the benefits of the digital economy to the growing construction market. The company expects the US construction market will reach $773 billion in the near future as the platform is global, hence the customer is not limited to regional or national markets.
- The Australian government has granted A$2.25 million ($1.7 million) to the Sustainable Sugar Project, led by the Queensland Cane Growers Organization, used to track the provenance of sugar supplies to Australia- the initiative known as Smart Cane Best Management Practice (BMP).
- The New York-based medical school founded by Mount Sinai Hospital has launched a new research center focused on blockchain applications in healthcare which researches the application of artificial intelligence, robotics, genomic sequencing, sensors and wearable devices in medicine. (Cryptocurrency future in the United States).
- Thailand’s biggest movie theater chain, Major Cineplex, is reportedly integrating payments in crypto which allows customers to pay for its products and services with crypto, including tickets and popcorn. Even, the Thai Securities and Exchange Commission started accepting license applications from the crypto operators.
- Kaliningrad, one of the cities who has hosted the FIFA world cup, is now offering cryptocurrency payments for hotel rooms. (Cryptocurrency future in Russia)
These use cases and predictions speaks a lot about the future of cryptocurrencies in 2020 and even after that. The blockchain (the technology behind cryptocurrencies) space is growing faster than ever. As these organizations and technologies mature, their real-world use cases will increase manifold, more than what we see today, reducing some speculative market elements to ground it in the actual performance, utility, form, and function of the next-generation of the internet. We have managed to add on some of the use cases, but there are many more.