Crypto 2030: Imagining What the Cryptoeconomy Looks After 2 Decades
The early cryptoeconomy is the house that bitcoin built, and the space grew rapidly in 10 years. As the arena enters its second decade, it’s Ethereum that’s taking the baton and is poised to usher in a new era of unprecedented activities around cryptocurrencies.
Yet the million-gwei question now is: how exactly will all the coming crypto bustle unfold?
Of course, it’s hard enough to guess what will happen tomorrow in the cryptoeconomy, much less what will happen years on from today. But there are certain macro trends already coming to the fore that can give us clues as to what the future of crypto holds. In today’s post, we’re going to draw some of these trends out to imagine, both analytically and for fun, what the cryptoeconomy may look like circa 2030.
In our hypothetical 2030, Ethereum 2.0 has already been around for years and offers users around the globe the full promise of Ethereum’s original vision: a superior platform for open applications and payments.
Ethereum’s early community, development, and DeFi moats ensures the project is still safely the cryptoeconomy’s top smart contract platform, though other smart contract projects are still around and popular in different regions for different reasons. Interoperability reigns, though many chains are effectively sidechains with Ethereum serving as a central activity hub.
At this point, Ethereum’s scaling pillars, like sharding and layer-two sidechains, make it so the platform easily powers more throughput than mainstream giants like Mastercard and Visa. Moreover, this scaling tech will also make it so it’s cheaper and faster to transact on Ethereum than basically all traditional alternatives.
I see the popularity of these trading protocols only continuing to ramp up from here precisely because of their open and free nature.
That’s why one of the most obvious predictions for 2030 is that DEXes will be vastly more ingrained in mainstream society and their crypto-centric complexities abstracted away by then. These solutions will go from bright stars in a rising niche ecosystem to a new paradigm for global finance, period. It’s already happening now.
Tokenizing bitcoin as Ethereum-based ERC20 tokens has exploded in popularity this year and in no small part thanks to the multiplying prospects for putting these tokens to productive use in DeFi.
That said, at the time of this post’s writing there were 68,500 BTC tokenized on Ethereum, i.e. 0.326% of the total 21 million BTC supply. By the time 2030 rolls around, I predict a major spike so that more than 33% of that supply living on Ethereum, i.e. +6.9 million BTC.
In this sense, it may end up that none other than Ethereum becomes BTC’s de facto scaling solution. That possibility may rankle some bitcoiners in the here and now, but over time I suspect more and more users won’t care — the relationship will just work.
The current market cap of all stablecoins combined is +$17.5 billion. This market cap will be decidedly over $1 trillion by 2030.
Why? Stablecoins can be saved and put to use via crypto-native earning opportunities, e.g. liquidity providing or lending, in ways that ordinary fiat can’t.
Additionally, stablecoins will only continue to give rise to, and complement, central bank digital currency (CBDC) efforts. Over time, the lines between fiat-pegged tokens and CBDCs will continue to blur, except in the case of truly decentralized currencies like MakerDAO’s Dai stablecoin.
Non-fungible tokens, or NFTs, are a popular rising use case on Ethereum that can be used to provide unparalleled provenance over digital assets like art, collectibles, gaming pieces, tickets, and more.
Moreover, since these assets are digital tokens on Ethereum, they can be programmed and extended to in essentially limitless ways.
DeFi : Money Legos
NFTs : Media Legos
— Jesse Walden (@jessewldn) September 3, 2020
In 2020, the NFT economy hit its first $100 million in total sales. Yet as these assets continue to pave the way to new kinds of creative economies, sales will only continue to climb. Look for the NFT market to be powering billions of dollars of sales by 2030 accordingly.
Decentralized autonomous organizations, or DAOs, saw a resurgence in the Ethereum community in 2019 and then started really blooming in 2020.
These digital, democratic, and transnational co-operatives offer a new paradigm for organizing communities online, and we’re going to see lots more of them — small, medium, and large — in the years ahead.
And across the board will be touched, as there will be venture DAOs, esports DAOs, lobbying DAOs, social DAOs, and so on. Basically if you can imagine any kind of group now, someone will likely have DAO-ed it, or something akin to it, by 2030.
Social money, or personal tokens, are one of the newer sectors to rise atop Ethereum. They can represent income sharing agreements (ISAs), community currencies, the memetic value of a creators’ brands or content, all of the above, or something else entirely.
We’ve already seen dozens of personal tokens start to take flight through social money platforms like Roll, e.g. the entrepreneur Alex Masmejean’s $ALEX token. Expect this trend to continue to the point that it’s a normal and mainstream thing to invest in “people” as part of a regular portfolio circa 2030.
Ethereum users call the decentralized finance arena “DeFi” because it’s novel and works completely differently to traditional finance. But this distinction will decrease over time.
Why? Because the crypto-native earning opportunities in DeFi are going to grow and attract so many users that in the future many DeFi activities will become fundamental and typical elements of personal finance.
By 2030, swathes of users ranging from consumers to large institutions are managing non-trivial parts of their finance through DeFi platforms. And by this point, all of the UX problems that plagued these young platforms are long gone.
One of the biggest early problems with popular public blockchains like Bitcoin and Ethereum was there lack of satisfactory privacy solutions.
Yet this problem will certainly be a thing of the past in 2030. At that point, mixer tools and projects based on zero-knowledge proofs (ZKPs) will be widely adopted atop Ethereum and beyond, meaning privacy will be the space’s default in the future and not opt-in (like how things generally are now).
Indeed, crypto users in 2030 will look back on users today and be flabbergasted by the level of privacy they enjoy compared to us.
The contemporary cryptoeconomy’s top projects hold within them incredible promise. And, while things are still early for now, all that they’ve been able to achieve to date gives lots of reasons to be optimistic that they will reach and help billions of users going forward.
Of course, there will be ups and downs along the way, just as the cryptoeconomy has seen its share of market cycles already. But all the recent advancements around scaling and DeFi make it seem like a tipping point has been reached, and that it’s all but inevitable that mainstream adoption will be reached. My guess is that mark will be handily achieved within the next decade.
The post Crypto 2030: Imagining What the Cryptoeconomy Looks After 2 Decades appeared first on Blockonomi.
Author: By TeamMMG
Bitcoin’s plunge, Twitter hack revelation and Pornhub now accepts crypto
Coming every Sunday, Hodler’s Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers!
It’s been a bad end to an already trying week for Bitcoin. At one point, prices fell below $10,000 across major exchanges.
Overall, the world’s biggest cryptocurrency has seen its value fall by 11.7% in recent days. Most of these losses came on Thursday when a sudden drop of 7% in less than two hours wiped out $99 million worth of longs.
This coincided with sell-offs on the U.S. stock market, and it doesn’t help that the dollar has been rallying recently either. Sentiment was mixed after the plunge, with eToro analyst Simon Peters warning Bitcoin “may still have a long way to fall.”
Exactly 91 years after the Wall Street Crash of 1929, the Crypto Fear and Greed Index showed a seismic change in investor sentiment — changing from “greed” to “fear” within hours.
Thought the weird case about July’s Twitter hack was solved? Think again.
The FBI has executed a search warrant against a 16-year-old from Massachusetts in connection with the unprecedented breach, which compromised high-profile accounts belonging to celebrities, millionaires and presidential candidates.
Detectives have raided the teenage boy’s home amid allegations that he may have played “an equal, if not more significant role” in the hack.
It’s claimed that he may have posed as a Twitter employee or contractor to fool legitimate ones into entering their login credentials on fake websites where he could capture them.
Three others have been charged in connection with the attack — a 17-year-old and 22-year-old from Florida, and a 19-year-old from the United Kingdom.
Binance may be advertising Bitcoin at bus stops in London, but make no mistake: The Bank of England’s governor is not a fan of the cryptocurrency.
Andrew Bailey — a known crypto skeptic — has said crypto assets are “unsuited to the world of payments” as Bitcoin has “no connection at all to money.”
There was some reason to be optimistic, though. Bailey said stablecoins could offer some “useful benefits” by reducing friction in payments — as long as they operate to the same standards as fiat-based alternatives already in the market.
Also this week, it emerged that the market cap of stablecoins has been increasing by $100 million a day consistently since mid-July. The rise of DeFi protocols and demand for tokens in liquidity pools will no doubt have contributed to this.
In an interview he gave during the middle of the crypto boom in 2017, Bailey had warned: “If you want to invest in Bitcoin, be prepared to lose all your money.”
If you want to get an idea about how small crypto’s market cap is, just take a look at Apple’s.
The iPhone giant now has a valuation of $2.1 trillion — six times more than all cryptocurrencies put together at $327 billion.
All of this suggests that the crypto sector has much more room for growth in the future.
Bitcoin has had an extraordinary journey over the past 12 years — going from a price of less than $1 per coin to record highs of $20,000 in late 2017.
Perhaps Bitcoin needs a comeback like Apple had. It’s weird to think that Apple was on the verge of bankruptcy in the 1990s, so much so that it needed a cash injection from Microsoft. In 2001, the iPod and iTunes were born… and the rest is history.
One of the world’s biggest pornography sites now accepts Bitcoin and Litecoin as a payment method for premium services.
Pornhub says it is excited to get greater exposure to crypto, noting that it has 130 million visitors per day.
The company is a year older than Bitcoin and was founded in Montreal 13 years ago. Currently, it’s the ninth-most popular website in the world.
It’s safe to say that BTC’s pseudonymous inventor, Satoshi Nakamoto, would have approved. Back in 2010, he had said: “Bitcoin would be convenient for people who don’t have a credit card or don’t want to use the cards they have, either don’t want the spouse to see it on the bill or don’t trust giving their number to ‘porn guys,’ or afraid of recurring billing.”
At the end of the week, Bitcoin is at $10,195.42, Ether at $340.52 and XRP at $0.23. The total market cap is at $324,953,472,998.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are BitShares, CyberVein and Flexacoin. The top three altcoin losers of the week are Ampleforth, Balancer and Aragon.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
“In the post-Halving bull cycles, bitcoin can often correct 25% (even 40% + in 2017), throwing off the short-term traders (or giving swing traders a shot at the short side). Each of those was a buying opportunity. DCA opportunity ahead?”
Raoul Pal, Global Macro Investor CEO
“A lot of panic selling yesterday from HODLers who were quite successful in buying tops. Their strategy seems to be – buy high sell low.”
“In a battle of the bulls, we see greater potential endurance favoring #gold over the #Nasdaq.”
Mike McGlone, Bloomberg senior commodity strategist
“Cryptocurrency is no longer the niche interest that it once was, but neither is it completely mainstream — it’s somewhere in the middle.”
We love this prediction because of how there’s so much margin for error — and little chance of being proven wrong.
Bloomberg analyst Mike McGlone has said Bitcoin could either be heading to the dizzying heights of $500,000, or it will fail.
In his view, Bitcoin is set to become digital gold — helped by how it has limited supply and increasing demand. McGlone has also drawn repeated comparisons to the bull run of 2017.
Crypto evangelists, including Anthony Pompliano and Tyler Winklevoss, have adamantly predicted that BTC will one day achieve parity with gold’s market cap of $9 trillion. Dividing that number by Bitcoin’s maximum supply of 21 million gets you a price of $428,571 per coin.
A new report has revealed how the Lazarus Group, a well-known hacking gang sponsored by the North Korean regime, launders its ill-gotten gains.
According to BAE Symptoms and SWIFT, Lazarus typically steals the crypto funds from an exchange and then starts to pass transactions through multiple exchanges, using something called a “layering technique.”
Facilitators from East Asia receive a portion of the proceeds for helping to launder the funds, and they’re tasked with transferring crypto across numerous addresses to “obfuscate the origin of the funds.”
The report, called “Follow The Money,” added: “Other stolen funds might be transferred in Bitcoin into prepaid gift cards, which can be used at other exchanges to purchase additional Bitcoin.”
The study noted that money laundering cases via crypto are still relatively small compared with the huge volumes of cash laundered through wire transfers.
An anti-crypto activist has used his influence as a senior Wikipedia editor to remove a blockchain-related entry about the Australian firm Power Ledger.
This isn’t the first time that David Gerard has done this. He appeared to boast about his latest victory in a blog posting, in which he claimed the deletion was “on the basis of being a pile of press release churnalism, and the only genuine press coverage was about how Power Ledger was a scam.”
Lobbying for the deletion, Gerard also took aim at the sources in the Power Ledger Wikipedia entry. He called CoinRivet a “bottom-of-the-barrel Bitcoin blog,” and also dismissed articles from India’s Economic Times and TechCrunch as “churnalism.” That phrase refers to news outlets who report on press releases without much, if any, investigation of their own.
It is worth noting that TechCrunch has 16 million readers, while The Economic Times is one of the world’s most-read English language business newspapers.
Not again. Hackers have once again taken over a high-profile Twitter account and posted messages asking followers to make crypto donations.
Who was the victim this time? Indian Prime Minister Narendra Modi.
This isn’t a good look for the crypto sector, not least because India is actively exploring ways to ban cryptocurrency.
Several tweets were posted from Modi’s account to his 2.5 million followers on Wednesday. One of them said: “Now India begin with crypto currency. Kindly Donate Bitcoin.”
Blockchain data shows no funds were sent to the addresses listed in the tweets — and the group, or person, responsible for the hack went under the name “John Wick.”
Does the battle between conservative Bitcoiners and progressive Ethereans mirror our divided political culture? Andrew Fenton takes a look.
Andrew Singer looks at the tech standoff that’s heating up between the U.S. and China, as some warn Washington’s reluctance to launch a CBDC could have dire consequences.
The United States Securities and Exchange Commission has made changes to its definition of who qualifies as an “accredited investor.” Osato Avan-Nomayo looks at what this could mean for crypto token sales.
Author: by elexonic
‘Bitcoin Should Be Traded Like Stock,’ Says Begin India Think Tank Founder
The founder of Begin India Think Tank says that bitcoin should be regulated as stock, which he believes is the legal status the cryptocurrency should get in India. He also believes that Bitcoin may be the most secure technology in our lifetimes.
Begin India Think Tank founder Deepak Kapoor has shared his view on how bitcoin and other cryptocurrencies should be regulated in India in an interview published by local business magazine BW Businessworld on Sunday. Begin India Think Tank assists the Indian government and investigative agencies in fighting crimes involving cryptocurrencies.
On the legality of bitcoin, Kapoor stressed “there was no ban on cryptocurrency,” noting that the only crypto ban was the banking ban imposed by the central bank, the Reserve Bank of India (RBI), which the supreme court quashed in March.
He proceeded to discuss private cryptocurrencies. “Globally everyone wants to make bitcoin into a private currency which will not be allowed because it will lead to the collapse of the economies,” he opined. “You make it legal and you might put the entire economy of the country at stake,” the Begin India Think Tank founder asserted, elaborating:
I think bitcoin should be traded like stock. That is the only legal status that it can get and it should get this status. This could possibly be the most secure technology cryptographically that we have ever seen in our lifetimes.
Kapoor further explained that cryptocurrency is not even a registered crime category in India, adding that the authorities should acknowledge this first. “I would want senior people from investigative and law enforcement agencies to first at least know about it and to know what is the world moving towards,” he told the publication. “We must have a body, but investing in bitcoins or any other currency is almost similar, so why does not SEBI [The Securities and Exchange Board of India] just qualify it as a digital form of asset and go with it.”
He additionally shared, “The most scary and challenging part is that I can have the entire economy of the US or the world converted into a small thing and carry it in my pocket or laptop.” Nonetheless, he emphasized, “The technology is actually custom-built and cannot be hacked.” He then talked about China, noting that “Almost 68% of all bitcoins originate in China on their servers.” The think tank founder continued: “Today we are so scared of their apps that are taking our data away sitting somewhere else. Imagine if I have to invest in bitcoins then 68% of all those will still originate in China. They already have the data and I won’t be surprised if they have the passport or replica of whatever I do.”
India currently does not have any direct crypto regulations. However, the government is reportedly discussing a draft bill to ban cryptocurrencies, submitted by the interministerial committee headed by former Finance Secretary Subhash Chandra Garg. However, the crypto community in India firmly believes that the government will not ban cryptocurrency and this bill will not be introduced as is.
In December, Begin India Think Tank co-organized a closed-door conference at the UN India’s headquarters in New Delhi. Parliament member Dr. Subramanian Swamy, who said “Cryptocurrency is inevitable,” participated. Methods, technology, and delivery mechanisms of cryptocurrencies that make countries, particularly their law enforcement, vulnerable were discussed at the conference.
Do you think India will regulate bitcoin as stock? Let us know in the comments section below.
The post ‘Bitcoin Should Be Traded Like Stock,’ Says Begin India Think Tank Founder appeared first on Bitcoin News.
The post ‘Bitcoin Should Be Traded Like Stock,’ Says Begin India Think Tank Founder appeared first on BTC Ethereum Crypto Currency Blog.
Author: By TeamMMG