Make room for blockchain and say goodbye to financial systems as we know them.
Experts are predicting the end of traditional cash, financial institutions, stock market trading, and even governments as the digital currency and blockchain take over the reins and claim total sovereignty over the financial world and ultimately the ruling bodies governing it.
The party is over.
Victims of digital currencies
John McAfee, developer of the first contemporary antivirus software predicts that “corrupt” centralized exchanges will cease to exist within five years. That’s 2023.
In their place will be Crytpo-centralized exchanges (Or decentralized exchanges, DEX), independent of a middleman, to play a similar role to stock market exchanges such as Nasdaq, and NYSE.
“Such a development will mark the end of any potential control by governments and precipitate ‘the largest economic boom in human history’,” McAfee said, as reported by the Bitcoinist.
“Then, DEXs involving millions of wallets residing in smartphones and other devices, distributed around the world, will bring an end to ‘the war governments’, which will not be able to shut down the crypto market,” said McAfee adding, “The blockchain is an absolute record of truth.”
Before the advent of the blockchain, we never had the truth before, according to McAfee.
Crypto market cap projections
Silicon billionaire Tim Draper, an early investor in Tesla, Hotmail, and Skype, predicts that the market capitalization of cryptos, what he calls “the best development ever, and a revolution bigger than the internet”, will increase by four hundred times to $80 Trillion In 15 Years.
“Despite its current volatility, Bitcoin could be regarded as one of the most secure places to store your money and one of the top placements for investors,” he said, as reported by Toshi Times.
Bitcoin (BTC) trading at $6255 at publishing time, but Draper is known to have predicted it will be worth around $250,000 in 2022, as fiat money will decrease in use.
“The internet started in the same way, it came in big waves, and then it came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here, with Bitcoin”.
“I think it’s going to have such a transformative effect on industries that we never even imagined would be transformable. The internet went after industries that were 10-100 billion dollar markets; cryptocurrency will go after trillion dollar markets – these are finance, healthcare and insurance, banking and investment banking, and governments.”
Mike Novogratz, The oft-mention founder of the cryptocurrency investment firm Galaxy Digital Capital Management, has now stated that he believes that cryptocurrency prices have reached the bottom of the recent bearish trend, Toshi Times reports.
This statement comes as cryptocurrencies, in general, have fallen sharply in 2018. Bitcoin has currently dropped around 51% since the start of the year, whilst Ethereum has seen losses of 73% and Bitcoin Cash a price decrease of a staggering 82%.
German financial institution Allianz forecasted a price floor for Bitcoin around $5,000 while others peg it as low as $2,500.
Business on Blockchain
1- Mass Adoption: Mass blockchain adoption is already underway. A Deloitte survey shows 40% of businesses based in the US indicating future plans for using blockchain in some way.
2- Error-free: With blockchain, smart contracts can be used to set up agreements within companies, and with their external vendors and clients, doing away with human intervention, errors, and paper trails.
3- Peer to Peer: Blockchain will empower peer to peer transactions and remove central authorities like banks to verify transactions or to ensure that funds are in place, also significantly reducing the need for time-consuming accounting and auditing.
4- Visibility: Fraud detection is why blockchain technology was created. Smart contracts can be created with protections that literally stop transactions when certain conditions aren’t met, and records visibility to everyone allows anyone to audit for inconsistencies against their own copies.
5- Medium for unbanked: Worldwide, around 2 billion are unbanked, according to Business Insider, for reasons ranging from lack of physical access to improper documentation, or lack of credentials to open an account, and low-income brackets. Blockchain can be implemented to provide financial services using digital wallets.
Without absolute data security, information technologies—or indeed entire economies built on blockchain—are fully exposed to cybercrime, which is forecast to cost the global economy up to $6 trillion by 2021, according to Forbes.
“With its iconic, glittering skylines, very few cities in the world can match the dynamic drive and pace of cities in the GCC, soon to include the futuristic transnational megacity NEOM. Their vision is bold, and it is highly likely that GCC countries will be among the first to integrate and utilize blockchain technologies on a major scale,” said Forbes.
“Cryptocurrencies such as bitcoin, Ethereum, Litecoin, and Ripple, could be worth more than $20 trillion in just two years, more than the entire American economy, however, every investor accepts that any cryptocurrency which is hacked will instantly collapse in value, a risk which no responsible government can afford to take with an entire economy.”
Forbes reports that the hacking of the South Korean Exchange Coinrail in June 2018 resulted in the reported theft of $40 million, and wiped around 20% off the value of cryptos.
“Given recent economic shocks of this kind and the fact that fortunes rise and fall on the basis of reputation, it is critical that any nation that aspires to create a stable economy built on blockchain makes sure that the technologies it is utilizing are built on a solid foundation of absolute data security,100% unbreakable and unhackable,” states Forbes.
In a new report from Vice, the myth that Bitcoin transactions are “100% anonymous” is completely shattered, reports the Daily Hodl.
Blockchain developer Tim Cotten shows how forensic analysts can use public blockchain information to trace Bitcoin purchases.
“It is not a good idea to commit crime with Bitcoin because the moment you have one single weak link in your operational security, all of your history is now exposed. ultimately identifying the person by their name, date of birth and legal residence. Someone with enough time and dedication will be able to trace your path back.” What’s better for anonymity? Fiat in the form of cold, hard cash.”
Over $1 billion dollars’ worth of Bitcoin, out of circulation since 2014, will be re-absorbed into the market soon, and some say that this will cause the market to crash, reports Finance Magnates.
Referring to the money that was stolen from Mt Gox, once the world’s foremost Bitcoin exchange, when in early 2014 it lost 850,000 bitcoins, worth $460 million at the time (and $5.5 billion now), to thieves that have not been found to this day.
Now, the procedures for returning the money have now been initialized:
160,000 bitcoins ($1.03 billion at current price) stand to be re-released into the wild when in June 2018, the bankruptcy of Mt Gox was concluded by a Tokyo court, as part of the process of repaying customers.
As things stand now, customers have until the 22nd of October to make a claim, and the money should be paid by Valentine’s Day 2019.