Tag: 2021

$250,000 BTC: Kraken Survey Shows Investors are Bullish on Bitcoin, Altcoins and DeFi in 2021

The latest Kraken VIP sentiment survey reflects how professionals and investors are thinking about how the cryptocurrency sector might evolve in the year ahead. Bitcoin price sentiment is at an all-time high with some projecting the BTC price as high as $250,000.

In the Kraken Intelligence 2H2020 Crypto Sentiment Survey released on Dec. 1, the research arm of the US-based crypto exchange Kraken focuses on its VIPS—a diverse mix of brokers, custodians, family offices, hedge funds, market makers, miners and traders—sharing their insight into the state of the crypto market heading into 2021 for any investor seeking an edge.

While there has been a slew of prominent funds and investors like Microstrategy’s Michael Saylor and billionaire investor Paul Tudor Jones making big bets on Bitcoin this year—the Kraken intelligence report indicates that the bullish sentiment has spread to its VIPs and extends to altcoins and the DeFi space.

Bitcoin and Ethereum Price Sentiment

The respondents to Kraken’s sentiment survey offer a bullish forecast for the Bitcoin and Ethereum price in 2021. The high-end estimates for the BTC price appreciation tops at $250,000 while Eth price tops at $15,010. Respondents are optimistic that next year both cryptocurrencies will provide at least 175% returns from October prices.

With the intent of gauging market optimism, particularly in light of what has been a 6-month crypto rally following unforeseen circumstances in the COVID-19 economic disruption from March 2020, Kraken Intelligence asked survey takers for their 2020 Bitcoin (BTC) and ether (ETH) price targets, in addition to 2021 to compare survey-over-survey summary statistics to identify changes.

According to the Bitcoin price targets for 2020 fell in the last half of the year. The Kraken findings show:

“The average Bitcoin price target among 309 responses fell -35% survey over-survey to $14,866, well below February’s average of $22,866. The median price target also retraced -28% from $19,424 to $14,000, and the most commonly cited price target was $15,000, down -25% from $20,000.”

For crypto’s number two—Ethereum—price sentiment was also down in the latter half of the year. The survey reads:

“With respect to ether (ETH), the average price target among 289 responses was $549, off -32% from the previous survey’s average of $810. The median price target was unchanged at $500 and the most frequently cited price target was $500, up +66% from $300. With only 3 months left in the year, we anticipated less optimistic summary statistics and lower standard deviations for both Bitcoin and ether price targets.”

The responses from participants on their 2021 Bitcoin and Ether price targets indicate that the market believes the latest crypto rally has serious legs and will continue into 2021.

The Kraken findings show:

“The average 2021 price target for Bitcoin came in at $36,602. The median price target is $25,000, and the most commonly submitted target is $20,000. Approximately, 8% of respondents provided a price target greater-than-or-equal-to $100,000, roughly 20% of respondents reported a price target greater-than-or-equal-to $50,000.”

Regarding Ethereum, Kraken’s survey participants appear to be even more optimistic of ETH performance next year with close to 59% believe that ether will, at least, hit $800. Additionally, 22% of respondents see ETH surpassing its previous all-time high of $1,595 set in early January 2018 and just under 92% see ether, at the very least, trading higher than current prices in 2021.

Altcoin and DeFi Sentiment

Altcoin and DeFi will not be left behind by investors in 2021, if Kraken’s findings are any indication. Despite tendencies to be highly volatile, altcoins remain front and center for many market participants despite collectively underperforming to Bitcoin.

Respondents were asked which altcoins were their favorite(s) and why. Participants were told to provide no more than 5 altcoins and those with fewer than 10 votes were excluded from the analysis. Approximately 105 unique altcoins were mentioned across 466 entries, with respondents providing an average of 2.5 altcoins.

Polkadot, Chainlink and Monero led the charge after Ethereum as the most popular alternative cryptocurrencies. A big factor for Kraken’s respondents in selection altcoin projects was cited as “community strength.”

Regarding the decentralized finance (DeFi ) space—the popularity of Ethereum, Polkadot and Chainlink reflected the rise of DeFi. Kraken’s respondents are investing in the belief that decentralized finance and reimagined financial products may disrupt the traditional industry. DeFi is also being credited for the increased adoption of stablecoins.

Optimism Ahead

In conclusion, the findings of Kraken’s report show that institutional adoption is driving bullish sentiment in the Bitcoin and crypto space. Almost 70% of survey respondents believe we are now in a bull market and believe that innovation, improvements, and positive regulation will boost their investments in 2021.

Crypto Going Public in 2021—Three Crypto Giants Set to Take On Wall Street

With the effects of the COVID-19 pandemic economic meltdown further fueling the rise of Bitcoin and cryptocurrency as an investible asset class, three giants of the crypto industry have announced plans to go public in 2021 and take Wall Street by storm.

The crypto industry is finally making the leap to mainstream investment on Wall Street. In 2020, major financial service and payments companies like JPMorgan, PayPal and Mastercard have been creating new avenues for public exposure to Bitcoin and crypto.

Major institutional investors and enterprises such as Microstrategy and MassMutual Insurance have also been allocating serious amounts of capital to Bitcoin and crypto, mainly as a hedge against the weakening dollar and impending inflation due to stimulus payments and unprecedented relief spending of governments around the world.

As cryptocurrency and Bitcoin surge into public and institutional consciousness, three large companies in the crypto space have announced or hinted that they are planning to launch an initial public offerings (IPO) to raise money on public markets.

As the United States Federal Reserve and central banks like the ECB continue to hold interest rates at record lows, the inflation narrative is gaining strength and going public in 2021 could be the tipping point for these crypto firms seeking public listing.

Ripple

In January this year, Ripple CEO Brad Garlinghouse predicted that initial public offerings (IPOs) will become more prevalent in the cryptocurrency and blockchain space in 2020.

While speaking at the World Economic Forum in Davos on, Jan. 23, Garlinghouse went as far as to hint that Ripple would itself be one of those firms to seek a public flotation. Garlinghouse said at the time:

“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.”

Unless you have been living under a rock in the crypto-sphere, it goes without saying that Ripple’s plans are currently up in the air with the ongoing Securities and Exchange Commission (SEC) lawsuit against the sale of XRP tokens as unregistered securities.

Unclear regulation towards altcoins like XRP along with its current regulation battle would make it incredibly difficult at this point to gain public confidence for investment into a Ripple IPO.

Coinbase

The most well-publicized and likely planned IPO for 2021 comes from major United States crypto exchange Coinbase.

The long-anticipated Coinbase Initial Public Offering (IPO) was finally filed on Dec.18 and now awaits the review and approval of the Securities and Exchange Commission (SEC) before the filing will be made public.

Coinbase is looking to go public in the coming months and submitted a draft registration (S1) form to the Securities and Exchange Commission (SEC), which read:

“Coinbase Global, Inc. today announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).

The Coinbase public offering is causing a stir in the markets and Coinbase (CBSE) pre-IPO contracts for the leading United States cryptocurrency exchange is currently trading at a projected valuation of nearly $70 billion dollars on FTX trading—a figure that is equal to three times the total value of the booming decentralized finance (DeFi) market and eclipses the entire marketcap of Ethereum.

Digital Currency Group

Digital Currency Group (DCG)—a conglomerate that owns Grayscale Investments, over-the-counter desk and lender Genesis Global and leading crypto news site Coindesk—is projected to launch its own IPO in 2021.

According to a report from Messari in November this year, a third party that might also soon throw their hat into the crypto firm IPO mix is Digital Currency Group.

While discussions over an IPO have not been raised publicly from DCG’s end, the report crunched down some numbers, which indicated that DCG would present a strong case for a successful IPO.

Owning firms like Grayscale Investments and Genesis Global, Digital Currency Group has built up not only an extremely profitable business but also a good reputation amongst institutional players. This reputation could make an easy sell to raise capital for an IPO in the public markets—but DCG is already a giant and may not even need public funding to succeed.

Messari projects that DCG could be worth over $4 billion should they go public in 2021.

Switzerland’s New Regulations for Blockchain And DLT Trading Facilities Usher In A New Era Of Clearer And Lighter Regulatory Regimes

Switzerland’s reputation as the most business-friendly country for blockchain and distributed ledger technology (DLT) ventures has cemented its role in fostering the development of global applications for tokenized economies – and global companies such as Dfinity and Diem have flocked to its borders and now call it home.

Known for its bottom-up, decentralized economic and political environment, Switzerland offers the ideal ecosystem for disruptive technologies. It has led the way with cryptocurrencies by creating the first regulatory body in the world to establish clear guidelines for ICOs and classifications for tokens, in addition to many other landmark legislative moves to ensure the success of cryptocurrency and DLT companies.

In January 2021 Switzerland will introduce a new license type for trading venues focusing on digital assets (DLT Trading Facilities), creating a clearer and lighter regulatory regime. A DLT Trading Facility is a new form of license for security tokens and other forms of digital assets. This legislation also provides a new license for “Uncertified Registered Securities” to stabilize the uncertainty surrounding civil law treatment of security tokens.

The Swiss regulatory bodies also recognized that to meet the expected needs of fintech start-ups and larger players alike, the DLT Trading Facility License can be applied for in two versions: A smaller, leaner license with lower requirements as well as a more comprehensive license type for higher transaction volumes.

[Source: MME Legal | Tax | Compliance]

The country’s clearly defined tax schemes for blockchain and DLT companies, access to an established ecosystem of service providers with expertise in the blockchain industry, such as law firms, banks, and tax regulation experts, create a supportive business environment. Switzerland’s long tradition in the fintech and the financial sector – and with its thriving “Crypto Valley” – will continue to be the choice of both startups and established global players building new applications for a tokenized economy.

As the global headquarters of the newly renamed Diem Association – formerly known as Facebook’s Libra – Switzerland will see the birth of the stablecoin Diem Dollar as soon as regulatory approval is granted by the Swiss Financial Market Supervisory Authority (FINMA), it is expected to be approved sometime in January.

Switzerland ranked number one of the ten most blockchain-friendly countries in Europe [Source: BlockShow Europe 2019].

An unparalleled brain trust: crypto-friendly research and educational institutions

One of the reasons both U.S. and global crypto and DLT companies flock to Switzerland is due to the unparalleled access to an educated and diverse talent pool made possible by the country’s federal institutes of learning and a two-tiered educational system.

The first university professorship in blockchain was created at the University of Basel in 2018 and the two federal science and technology institutes in Lausanne and Zurich have been recognized as global leaders in crypto education [Source: Coinbase, 2019].

World-renowned institutes committed to DLT and blockchain advances assure access to a highly educated and skilled workforce prepared for the explosive growth in cryptocurrency, DeFi, and blockchain in the 2020s.

The Blockchain Center at the University of Zurich has become the most active academic cluster in Switzerland. It is led by 22 professors who work to investigate blockchain topics from a multidisciplinary perspective.

The remarkable body of research institutions and educational programs devoted to DLT and blockchain technologies are unmatched in the world and make Switzerland an attractive choice for EMEA headquarters and research facilities for crypto companies.

An innovation-friendly regulatory network by design

FINMA’s introduction of unsupervised sandbox regimes in 2017 allowed young fintech startups to grow by not requiring a banking license to accept deposits from the public if certain criteria are met. Rather than stifling innovation, young companies have the freedom to explore and develop before they become regulated.

With clear metrics and guidelines once they approach “bank-like” status, these promising start-ups then apply and are integrated into the regulatory structure. Since 2019, companies who obtain a fintech license have been able to accept public deposits of up to 100 million Swiss francs, greatly simplifying blockchain and crypto companies’ access to the Swiss market.

The innovative sandbox regime introduced only three years ago has had a dramatic effect on the number of fintech and crypto startups that flock to Switzerland. To date, Switzerland boasts:

●  The first regulated crypto banks, SEBA and Sygnum

●  842 blockchain-related companies

●  These companies employ over 4,400 employees

●  This environment has birthed five unicorns: Ethereum, Dfinity, Polkadot, Bitmain, and Diem, with more anticipated. 

[Source: CV VC Top 50 Report H2/2019]

A legacy of firsts in the cryptocurrency ecosystem

The city of Zug was the first state authority in the world to accept Bitcoin as an official means of payment, thus the birth of Switzerland’s “Crypto Valley.” Zug also saw the creation of Ethereum, an open-source platform for decentralized applications resulting in the second most significant cryptocurrency next to Bitcoin.

The success of Ethereum helped create a global ecosystem that stretches from German speaking Zurich, Basel, Lucerne and Bern to French speaking Geneva, Neuchatel and Lausanne as well as Ticino, Switzerland’s Italian speaking region, each with its own approach and expertise in the cryptocurrency ecosystem.

In 2018, Switzerland’s regulatory body, FINMA, became the first regulator in the world to publish clear guidelines on ICOs and classifications for tokens. Later that year, the Geneva cantonal authorities released the very first guide dedicated to supporting ICO project promoters.

A favorable legislative and tax system for the decade of crypto and blockchain

In June 2020, Swiss authorities passed a legislative package impacting around a dozen financial laws which brought favorable changes to the blockchain and DLT sector while at the same time, leaving untouched, the respective tax laws which were already seen as highly favorable to this emerging sector.

In 2019, funding of the top 50 Crypto Valley companies totaled US$7.8 billion, and US$3.7 billion for H12020 [Source: CVVC Insights]. As Swiss companies thrive, U.S. companies such as 21Shares, IBM (whose R&D lab was established in Zurich in 1956), and the aforementioned unicorns Dfinity and Diem, reap the benefits of this crypto sandbox.

Switzerland’s newest kid on the block, Diem, plans to develop policies for sanctions compliance and to fight money laundering and terrorist financing, all of huge concern to regulators and Western governments [Source: VentureBeat, 2020].

Crypto and DLT companies looking to put their growth trajectory into hyperdrive should consider the market access advantages Switzerland offers as the 2020s become the decade of cryptocurrencies and blockchain technologies.

Christoph Besmer is the Trade Commissioner for Switzerland and Head of Investment of the Swiss Business Hub USA. For more information visit Blockchain Hub Switzerland or contact christoph.besmer@eda.admin.ch.

Greater Bay Area Blockchain Week 2021 to Bring Global Attention to Blockchain Innovation

A nearly week-long event of the GBA Blockchain Week 2021 will convene thousands of online viewers to the brightest spot on today’s global financial map. The event, including the core 2-day Virtual Summit, will be broadcasted globally and in China, showcasing cutting-edge technologies and its most exciting case studies.

Conference agenda will revolve around a series of keynotes, fireside chats and interactive live panel discussions led by over 100 industry experts. Over 2000 participants from 50+ countries are expected to attend the GBA Blockchain Week.

Key industries affected by technologies like blockchain and AI will be explored during sessions dedicated to development of smart regulation, DeFi, NFT’s, public blockchain networks, investment strategies, blockchain governance, as well as fintech bridges from GBA to EMEA regions.

China’s own Greater Bay Area such as Hong Kong and Macau as well as cities within the Southern Guangdong province, is home to almost 70 million people. The area consists of unique city clusters: the financial and legal centre for APAC, Hong Kong as well as Macau, enjoying the world highest GDP per capita. To top it off, China’s own Silicon Valley, Shenzhen. These counteract with other prominent bay area’s such as San Francisco or Tokyo. The area is a test ground for urban infrastructure innovations and financial tech, and is expected to see accelerated growth of capital and talent in the next few years.

Speakers and high-profile experts from all over the world will converge to GBA Blockchain Week 2021 to discuss major opportunities and prospects of China’s heavily discussed project of DCEP. The digital yuan has been already launched for several batches of testing in GBA. Participants will also assess legal frameworks and results of operation of virtual banks’ ecosystems in the region.

Themes mentioned on the event agenda will cover the brightest momentum for digital assets: the Bitcoin Bull-run has certainly boosted further interest, particularly from a vast number of professional investors within the Cryptocurrency believers club. Institutional investors definitely drive the attention to mass adoption, bringing together the big industry players and international regulators to create a safe and progressive environment.

Juwan Lee, Chairman of NexChange: “Greater Bay Area Blockchain Week brings a unique chance for the world to learn how technology changes the way so many industries operate in one of the most tech-advanced places on earth.”

About NexChange: NexChange Group is a venture builder and media platform specializing in Blockchain, FinTech, HealthTech, AI, and Smart Cities. NexChange is known for hosting annual Hong Kong Blockchain Week, a premiere blockchain event organised in closed collaboration with local governments.

For more information on the speakers, agenda, side events and partnerships, please visit https://www.gbablockchainweek.net or contact: info@nexchange.com

Image source: GBA Media

Forum Blockchain Life 2021

Sixth biggest offline event on blockchain, cryptocurrencies and mining – Blockchain Life 2021  – taking place on April 21-22 in Moscow.

Every year the event gathers 4000 participants at the innovative venue Music Media Dome.

For more information: https://blockchain-life.com/europe/ru/

Among the participants and exhibitors of the forum: the leading global companies of the industry, investors and funds, business owners, startups, miners, government officials and other special guests who are interested in the development of one of the most promising areas nowadays.

Blockchain Life 2021 brings together performances by world industry speakers, more than 3 000 m² of exhibition area, productive digital networking that begins days before the event, and various other unique formats of interaction between participants at the venue.

Quantity of tickets is limited.

The price starts at 29$Buy a ticket for the best price: https://blockchain-life.com/europe/ru/#tickets-row.

Image source: Blockchain Life 2021 Media

Greater Bay Area Blockchain Week 2021 to Showcase International Technological Bridges

A nearly week-long premiere virtual event will feature industry leaders discussing the most exciting use cases of blockchain application in fintech, healthtech, investment banking, supply chain etc., as well as strengthen links between China’s own Greater Bay Area and other countries.

 

GBA Blockchain Week 2021 will kick off on March 29th, with core Virtual Summit happening on the 30th and 31st. Exclusive content will be streamed globally and in China.

With Bitcoin price hitting all-time highs, one of the main points on the agenda is a high renewed crypto market interest, especially from institutions. During lively discussions, experts will also explore smart regulation, DeFi, NFT’s, public blockchain networks, investment strategies, blockchain governance, as well as fintech bridges from GBA to various regions, connecting the East and the West.

Names featured on the agenda throughout the week include:

●    Justin Sun, Founder, TRON & CEO, BitTorrent

●    Mance Harmon, Co-Founder & CEO, Hedera

●    Brian Behlendorf, Executive Director, Hyperledger, The Linux Foundation

●    Roger Ver, Founder, Bitcoin.com

●    Prof. Wei-Tek Tsai, Professor, Beihang University

●    Tom Trowbridge, Co-Founder, Fluence Labs & Former President, Hedera

●    Alex Mashinsky, Founder & CEO, Celsius Network

●    Albert Isola, Minister for Digital and Financial Services, Government of Gibraltar

●    Henri Arslanian, Global Crypto Leader, PWC

●    David Lee, Professor of Blockchain, Singapore University of Social Sciences

●    Dr. Ben Goertzel, Founder & CEO, Singularitynet & Ex-Chief Scientist, Hanson Robotics

●    Miko Matsumura, General Partner, Gumi Ventures & Co-Founder, Evercoin Exchange

●    Sheila Warren, Head of Data, Blockchain & Digital Assets

●    Perianne Boring, Founder & President, Chamber of Digital Commerce

●    Emmanuelle Ganne, Senior Analyst, Economic Research & Statistics Division, WTO

China’s own Greater Bay Area such as Hong Kong, Macau, and cities within the Southern Guangdong province, is home to almost 70 million people. The area is a test ground for one of the world’s first central bank digital currency, Digital Cash Electronic Payment (DCEP) by the

PBoC. With its urban infrastructure innovations and sophisticated financial tech solutions, GBA is expected to see accelerated growth of capital and talent in the next few years.

About NexChange: NexChange Group is a venture builder and media platform specializing in Blockchain, FinTech, HealthTech, AI, and Smart Cities. NexChange is known for hosting annual Hong Kong Blockchain Week, a premiere blockchain event organised in closed collaboration with local governments.

For more information on the speakers, agenda, side events and partnerships, please visit https://www.gbablockchainweek.net or contact: info@nexchange.com

Image source: GBA Media

Consider These 6 Factors When Trading Crypto In 2021

What do trading audiences expect with high-quality, modern exchange and aggregator services? It has a lot to do with the context of the industry – what people are doing with their assets, and the choices that they have to navigate within the greater fintech ecosystem. 

Here are some of the things that contribute to superior platform services for cryptocurrency and defi exchanges that want to move the ball forward in the realm of decentralized assets.

 1.Low Fees and Capable Throughput

 One thing that cryptocurrency brought to the world of finance is the types of frictionless and easily verified transactions that lower the cost of providing services. The best exchanges and associated platforms pass this on to users in the form of low trading fees. The scalability and design of these systems means that administrators can take advantage of core efficiencies that empower their users.

 2.Regulatory Problems

 Many of us have heard about what happened at BitMex and OKEx and Kraken and Ripple…  and the list goes on – the cryptocurrency sector is rife with conflict between regulators and the parties being regulated. Exchanges that are proactive in compliance will often outperform those who aren’t, and deliver more in terms of investor confidence.

Think about these aspects of crypto exchange and interface design.Atani is a major aggregator performing with attention to the above pillars of quality, with thousands of pairs, low trading fees, and much more. Get the security and access of a well-designed sandbox for cryptocurrency transactions.

3.Liquidity Aggregators

The best platforms are able to bring a lot of siloed activity together from places like Coinbase, Kraken, Bitfinex, and other areas of the cryptocurrency world, to offer traders a bigger menu at their fingertips. This is more than just an academic exercise – having more than one exchange platform in a particular interface gives users access to more in real time as they plan their portfolio strategies.

4.Portfolio Tracking, Event Notification and More

Of course, it’s important for end users to be aware of what’s happening during a given market session. A good trading terminal will accomplish this through offering different kinds of transparency resources. Traders may be involved in complex positions. They should be able to see these at a glance. They should also be able to understand whether any big volatility events are going on. All of this drives more informed trading sessions and it’s a must for new exchanges to think about how they offer these features.

5.Uptime and Availability

One of the worst situations for traders is when they can’t access their assets and trade them in real time.

Sadly, crypto exchanges are not always immune from unplanned downtime, and that can create problems in various ways. The best exchanges will use redundant zones of availability to maintain service, even through peak trading or various kinds of emergencies.

6.Secure Wallet Profiles

Exchanges also work to put traders’ minds at rest in terms of cybersecurity. With a combination of proper safeguards and non-custodial brokerage frameworks, end users can be confident about trading without the threat of internal hacking affecting their wallets or what goes into and out of those wallets on a regular basis.

Image source: Atani

Blockchain Finance Forum: Europe 2021

Wisdom announces its upcoming not-to-be-missed Blockchain event

Through a series of top-level presentations, interactive panel discussions, and solution-based case studies the Blockchain Finance Forum: Europe 2021 will explore the effects that this new disruptive technology has on the European financial sector, and at the same time showcase the best practices and models to recognize and seize the opportunities to generate new revenue, deliver process efficiency, improve end-user experience and reduce risk in business operations that come with it.

The Forum will count on 30+ expert speakers from well-known organisations like the European Commission, Swiss National Bank, European Banking Federation, the British Blockchain Association, European Blockchain Partnership, Deutsche Bank, Aviva and many more

Benefits of joining – Participants will meet the market leading companies, and listen to their best-practice examples and case studies on blockchain technology supporting the financial sector – Engaging speakers: blockchain experts, cryptocurrency leaders, solution providers and startup founders who think outside of the box and can offer exciting new ideas – To learn how companies with the help of blockchain can enable faster and more transparent payments, reduce the KYC and onboarding costs, improve operational efficiency and achieve automated regulatory compliance – To uncover new products and technology and explore new market opportunities – To gain a competitive advantage in a rapidly changing business environment – Participants will join a unique platform to share know-how among industry peers and grow their professional network

Key topics – Tokenisation of digital assets – Reduce KYC and onboarding costs with the use of DLT – Blockchain to enable faster and more transparent payments – Stablecoins and CBDCs changing the landscape – Crypto ecosystem business opportunities – how to ensure true interoperability – Blockchain platforms revolutionizing the insurance industry

The Blockchain Finance Forum: Europe 2021 will be delivered through an advanced networking tool.www.blockchainfinanceforum.comSpecial 10% Discount Code: BlockchainNews10

Image source: BFF Media

The End of Bitcoin: Which Cryptocurrencies will survive a future crash?

During the Covid crisis, casual investors started to swap stocks and shares and even golf for investment in cryptocurrency, with Bitcoin and other altcoins like Ethereum proving to be hugely popular.

Elon Musk continues to endorse cryptocurrencies on Twitter, and his company Tesla has invested $1.5 billion into Bitcoin, amounting to a huge 7.7% of its gross cash position. Proving that some of the major stock market players believe Bitcoin has a huge future. But what will happen ten years from now?

CoinList invited a team of experts to explore the future of cryptocurrency in a wide-ranging interview. The Pareto Principle, better known as the 80:20 ratio, is the idea that 80% of the market will be monopolised by 20% of the competition.

With thousands of different coins all vying for a market share and as many as 1,700 of them already “deceased”, is the crypto market headed for a modern-day Dot-com bubble? If so, which altcoins will be left standing in the event of a future crash? 

The panel also considered the future of cryptocurrencies, with general agreement that they would revolutionise the financial system, as well as predictions that the recent current bull run would gather pace again in the second half of this year.

The experts also discussed the here and now, giving their price predictions for the end of June, which ranged from $25,000 to $500,000!

The panel consists of:

·   Jean-Yves Sireau – Founder and CEO of trading platform Deriv

·   Paul Sokolov – CEO of custody-free crypto wallet Guarda

·   Anna Chertoc – CEO of cryptocurrency exchange aggregator Swapzone

·   Lennart Clausen – Head of Trading at Scandinavian Forex and CFD broker Skilling

·   Pavel Matveev – Co-founder and CEO of blockchain-based payments platform Wirex

You can read the panel’s answers in the full article here.

Why is everyone going crazy over NFT?

Author: Dmytro Volkov, CTO of the international cryptocurrency exchange CEX.IO

NFT stands for “non-fungible token” – meaning that each one of these is unique and one of a kind. One token can’t be replaced with another, which is what makes NFT different from, say, straightforward BTC coins.

NFTs are used to tokenize digital goods for the purpose of monetizing them. This means creating a digital certificate of ownership over an object, which can then be freely sold or bought.

The uniqueness stems from the fact that each piece of content is linked to a single NFT token and stored in a smart contract – for example, on Ethereum blockchain. This way, while someone else may have copies of the same content, only one person can own the specific token that proves ownership of the original piece.

Considering their unique nature, the demand for NFTs will depend less on the cryptocurrency market and more on the demand for virtual creations. IoT (Internet of Things) may also become an additional source of demand here. Given that we live in an age when the influence of virtual reality is constantly growing, it is only to be expected that NFTs stand to gain in popularity the further we go. 

NFT first got their recognition in the field of gaming – in particular, thanks to CryptoKitties blockchain game. But now they are steadily expanding into other areas, as well. It is my belief that non-fungible tokens will get further usage in the field of art: music, paintings, etc. 

At the beginning of 2020, the market capitalization of non-fungible tokens was at $141 million. In 2020, it increased by $196M, reaching the mark of $338 million by the end of the year. The main demand, which stimulated the growth of this market, came from the metaverse – the fusion of the physical world, augmented and virtual reality -, the world of art, and online gaming. Metaverse accounted for 25% of deals worth over $1,000, art objects accounted for 24% of such deals, and items from online games – 23%.

But at the same time, it has to be admitted that the NFT technology has not yet received sufficient enough reach. This is why it’s too early to talk seriously about what kind of impact it could have on the world. The main demand will likely come later. 

As with any new product, there is uncertainty about how NFTs should be regulated or how to even bind their value to existing objects. So far, the costs of artworks differ so much that it is hard to consider what an “average” cost of an NFT would be. A token’s value is equivalent to the value of the item the ownership of which it represents, which means that the cost of both is equal. 

The most expensive NFT in history – the “Dragon” collectible from CryptoKitties, was sold at the end of 2020 for 600 ETH (about $270,000 at the time of sale). In March 2021 the art piece “Everydays: The First 5,000 Days” by artist Beeple was sold for over $69 million. 

According to CoinGecko, the capitalization of the NFT market in March 2021 exceeded $8 billion, which is a clear evidence of the rapidly growing demand for non-fungible tokens and the digital assets they mainly represent.

Considering all this, it is safe to say that, while NFTs are still a relatively new and somewhat confusing field, its growing popularity is indisputable. Non-fungible tokens could be a basis for very beneficial relationships between creators of content and buyers. The prospects for this market are quite looking quite nice.

Image source: CEX.IO Media

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