The market capitalization of cryptocurrencies is five times what it was a year ago. The future is digital, mobile, distributed, almost trustworthy, but unchangeable. The Covid-19 pandemic has accelerated the transitions!
Here are three common myths people have when they first hear about crypto: Cryptocurrencies are anonymous (and therefore more likely to be used by criminals); There is no real use case (other than speculation). This crypto is just a matter of currency. a16z manages $ 865 million across two funds and invests in crypto companies and protocols. This is one of the venture capital funds that has been investing in this area since 2013 and has produced a 10 year old white paper on the subject. 2021 heralds the digital, mobile, distributed, at this point downplayed and permanent future of crypto.
The fast and inexpensive transfer of real value without third parties, as we currently transfer data such as emails or photos, will shortly be technologically possible on a large scale. Bloomberg announced yesterday that Bitcoin rose to $ 40,000 for the first time, doubling its value in less than a month, and bringing the total market value of cryptocurrencies to over $ 1,000 billion. Discover the practical guide if you want to start the Bitcoin buying adventure of our colleagues at Begeek.fr
Cryptocurrencies have hit the mark after a five-fold increase in market value last year, according to CoinGecko. Analysts cited demand from retailers, trending funds, wealthy and even institutional investors as the reasons for the increase. As investors and policymakers face the changing dynamics of developed countries’ monetary responses to the crisis. In addition to accelerating technological change, giant financial companies like PayPal have made crypto accessible to all consumers. For example, 26 million merchants in the PayPal network accept cryptocurrencies.
Coinbase’s exchange, custody and trading platform for crypto startups now has more user accounts than financial giants like Charles Schwab, TD Ameritrade, E * Trade and Interactive Brokers combined. The Chicago Mercantile Exchange has become the world’s largest and most active Bitcoin trading market, previously dominated by unregulated, resident platform operators. The central banks have announced that they will create their own digital currencies. FinTech companies / startups should prepare to participate in regulatory instruments while diversifying their products and services. Especially since the Office of the Currency Auditor (OCC) has come to the conclusion that banks chartered nationwide can provide services for crypto currencies.
Despite some loud industry voices shouting scandals, 2020 regulatory activity laid the foundation for the future success of crypto and related companies in the US. In France, a forum of the Deputy Director General of the CA on this subject is no longer appropriate! The number of hacks and frauds has increased rapidly, which is preventing existing and potential users from participating in this market. What have banks done since 2008 to advance and secure this new industry? Crypto remains a delicate and volatile prospect for traders. The hope is that the industry will enter a more mature phase and be less prone to hype and speculation (and crime).
We’re turning a corner and the pandemic has accelerated:
Payment blockchains pick up where Bitcoin left off, solving currency volatility and delays in settlement transactions. Unlike services like Venmo or PayPal, which send a digital IOU instead of real money, here the recipient has real value with no third-party dependencies as soon as you hit « Send ». Cryptocurrencies are like cash in this way: bits and bytes are themselves the carrier. Unlike legacy systems, which require both the sender and recipient to have a banking infrastructure for billing, payment blockchains do not require a bank account, opening financial services to more than two billion people without a bank account in the world. the world.
When you turn money into bare pieces, software developers can also creatively design new services around money, as they did with photos and text. Payment blockchains could ultimately do to banks what emails did to the post office and VoIP services to long-distance carriers.
Today, the video game industry is at the forefront of this trend, experimenting with things like digital goods that can be traded in secondary markets and transferred between games. a16z predicts that crypto monetization models will be applied to other creative activities including writing, music, podcasting, programming, design, and more.
The Asia-Pacific region ahead
Many countries in Asia are ahead, with China leading the way and very early on using the mobile phone QRCode for payments, including by courier. China is the most representative representative of East Asia. This region is responsible for most of the domestic transfers of value and is the largest crypto market in the world. About 31% of the transferred value comes from China.
Regulation across the region is taking shape, which is also helping usher in the massive adoption of crypto.
According to the recent Vietnam Fintech Report 2020, the strong development of fintech in Vietnam has been driven by the rapid growth of e-commerce platforms and the government’s efforts to accelerate digital transformation and cashless payments to cope with the impact. from Covid-19. Statistics show that electronic payments in Vietnam have increased 76%, with the total value of transactions in the first quarter of 2020 increasing 124% over the same period in 2019.
Singapore is emerging as the world leader in crypto. The city-state is developing blockchain technology for payment systems and improving government processes. The regulation and licensing provide an advanced framework that governs the payments and services of the token system for digital payments in Singapore and allows certain cryptocurrency companies to continue operating in the country. At the end of 2020, there were 234 blockchain companies operating in Singapore!