A cryptocurrency (some also call it digital currency) is a relatively new concept that took shape in 2009. Its inventor had never intended it to be an alternative for cash. The inventor’s original objective was to develop a peer-to-peer electronic cash system. Since the first cryptocurrency, it has grown beyond the original intention and is taking the form of an asset. Driving this is the Blockchains solutions with a formidable presence.
Crypto Boom in 2017
The year 2017 was particularly great for cryptocurrencies. The total market capitalization boomed from an estimated $15 billion at the beginning of the year and sped past $600 billion. This made market watchers sit upright and begin to take what they had earlier ignored or dismissed as insignificant.
Those who invested came from a wide spectrum and included tech-savvy teenagers, homemakers looking around for putting their money in savings, wealthy individuals, small families, financial consultants, and even some institutional investors. Some cryptocurrency news in the media even spoke about the emergence of millionaires overnight. We should, however, be aware that cryptocurrency is still in its nascent stage, immature, and a long way to go even today.
Towards the end of 2017, a milestone year for crypto, the cryptocurrency was potentially an assets stream that had both challenges and opportunities for creating wealth, but not without its own complexities and fragmentation. Fragmentation had a major impact.
Bitcoin Continues to Lead
Bitcoin, introduced in 2009 and one of the top 5 cryptocurrencies, with a total market capitalization of all crypto assets had 85% of all the world’s crypto assets. This has now dropped to around 50% though not because of its market value but because of other competing crypto assets. At 1,000% growth, it had still grown significantly. As of 2017, there were over 10 crypto assets with most competing with Bitcoin. Each crypto has its own communities however with contributions from select communities, advocates, and even critics.
The understanding of the cryptocurrency landscape is still a bit hard to understand requiring more research. A question like what assets to hold, the allocations, venues for buying, and the information required all have to be monitored.
Blockchains System and Bitcoin
Blockchains system (a technology) is what drives Bitcoin and other cryptocurrencies and is popular among finance businesses because it has the ability to smoothen processes and efficiency. It is widely believed that it can cut operating costs by up to $20 billion a year towards the beginning of 2022.
The blockchain is really a distributed ledger endowed with the capability to safely store data in a secure, permanent, and easily accessible form. Blockchain solutions make it simpler to reduce paper-intensive complicated financial transactions such as remittances to be done inexpensively. Investors are therefore able to easily accomplish cross-border transfer shareholder management on a large scale. It is generally an enabler for record-keeping on a higher scale. Intelligence reports in the 2018 project that the financial industry will use it as a standard practice in the coming years.
Blockchain Business Potential Projections for 2018 and Beyond
Though Blockchain business is still an emerging technology it can transform the ways in which we do business. Apart from the financial industry that uses Blockchain technology the most, trends indicate that the supply chain and logistics industry will also benefit immensely. According to the WTO (World Trade Organisation), it can increase the global gross domestic product by at least 5% and spiral trade volume by as much as 15%.
Some areas where the Blockchains system can make a major dent are the pharmaceutical industry in the US that loses close to $200 billion every year because of counterfeit drugs. In terms of business projections, Blockchains business in the healthcare industry alone is estimated to be worth a whopping $134 billion towards the end of the year 2030.
The potential of Blockchains network can solve problems in multiple genres – it can be used for creating a common database on health information and higher security and privacy for example. For these reasons doctors will be able to save on the time they spend on administration and sharing researching medical research and facilitate the introduction of new drugs and treatment procedures.
Blockchains Companies and Blockchains Solutions
Bitcoin and Ether are the two best known in the Blockchains and crypto business around the world, but that is not the end – they have been around for a long time and have nothing new to offer. It is refreshing to know a little about late entrants. Among the later entrants are 10 relatively new entrants who use Blockchains technologies: Ripple, Tron, FCoin, Goldilocks, DACC, ADBIT, Buddy, Gameflip, Menlo One, Celsius Network, TraDove, and PATRON.
These are but a few Blockchains companies, but there yet more innovative companies taking shape using innovative technologies. They are widely spread across different industries such as content creation, transportation, financial services, and more.
Leading the Blockchains companies are well-known developers, service providers, and technology savvy entrepreneurs out to make their presence felt.
Blockchains and Cryptocurrency: Trends in 2018
It is the general perception that in 2018 cryptocurrency is poised to scale new heights with new entrants planning to manage crypto assets and complexities associated with it. Now the trends:
- Big players enter; includes Microsoft, IBM, and Oracle, just to name a few
- There will be an increased interest in Blockchains companies, digital currency, and crypto coins in the middle-east and Asia
- Security issues will be given due consideration it deserves because of new concerns in the Blockchains systems
- Blockchains, Crypto, and Financial technologies will face an unpredictable future due to its disruptive nature
- Blockchains will become more of an asset tracking tool and not just be a database
The last year 2017 saw a big crypto wave during the time of October. Time only will tell whether the crypto wave will hit the shore again this year. Let’s wait and watch what the future holds for cryptocurrency.