It has now been over a year since the great bitcoin bull run and crash. So where do we stand now in terms of crypto currencies?
There has certainly been movement over the last year, despite the large downturn in crypto prices. However it is not all doom and gloom. The bull run of 2017 was certainly good for some things, including building attention around the blockchain technology, and what it can provide us.
I think that neo banking may be where we see the development of a more ‘currency’ like application for the blockchain. We are starting to see neo banks pop up all around the world. Neo banks are essentially banks that are building everything from the ground up, to better fit into the new digital world. That means everything from payment clearing to internal data management. It is likely that block chain technology will be adopted for this purpose, which could see some innovation in the space.
JPMorgan a few weeks ago announced that they will be launching their own cryptocurrency based payment management service called JPM coin. Notably, this is not a bank issued cryptocurrency, but rather a way for JPMorgan to handle large payments between large institutional clients. It will be redeemable 1:1 with the US Dollar.
Some people are predicting that we will see more listing of traditional derivative assets on exchanges that are tied to crypto assets. This may begin driving institutional money into cryptocurrencies which could begin to see them becoming more accepted.
Actually using cryptocurrencies?
Japan is an interesting case for the adoption of cryptocurrencies as a main payment method. In Japan, most of the payments take place using physical cash. However, next year the world will descend on Japan for the Olympic Games. The problem they are facing is that neither the physical or digital payment systems in Japan are up to the task of the millions that will be spent. There is a compelling case for the rapid transition onto a blockchain based payments system that will be capable of handling the load.
What happened to Bitcoin?
Bitcoin was synonymous with blockchain and cryptocurrencies at the end of 2017. But there has been a definite separation between the two. Part of this is the adoption of blockchain technology in other applications, which has made more clear the differences. However, there has also been movement in the cryptocurrency space since then. Ripple is really the new star of the show for crypto speculators, as common wisdom is that the trading of bitcoin futures will cap the gains that can be made in bitcoin due to the heavy trading pressure.
Want to learn more?
There is no doubt that the block chain is going to become a very large part of the economy in the future, so learning about it may be the best investment you can make. Luckily, the books on cryptocurrencies and blockchain are very inexpensive, so you can’t go wrong dropping a couple bucks on the below books and getting some knowledge on the subject.