Crypto currencies are an evolving asset class which even it’s detractors admit shouldn’t be overlooked by not only Institutional investors but central banks. Today with the exponential rise of blockchain and cryptocurrencies, a paradigm shift has emerged in the field of technology sometimes know as web3. Even the the United States treasury is considering a digital dollar and digital wallet. For the recent stimulus package a.k.a helicopter money.
Over the past decade passive funds have become the most popular investment vehicle for both institutional and individual investors in investment finance; however the recent correction has shown the consequences when Quant traders basically the machines use Exchange trades funds and Index futures to drive the markets up and down in rapid ping-pong fashion.
We believe that Bull markets make genius of everyone obscure a multitude of sins and cause bad habits to form. Wnen you can thrive and survive a bear market market than you know you’re a real business. Many of the current unicorns and darlings of the bull market are built on a house of cards.
The rise of blockchain technology as a service used in real businesses will soon deliver massive positive effects to the economy and change the way we live, learn and work. Undoubtedly such a revolution, although gradual, will not be overlooked by savvy family offices, institutional and high net worth investors. The creation of CME options and futures and various Defi and crypto lending platforms have emerged.
The rise of crypto currency index funds weighted by market capitalization offering quick and easy access to family offices and sovereign wealth funds. As the traditional type of economy is being disrupted money is rapidly flowing into cryptocurrencies, either for speculative purposes, or more importantly for supporting projects that are built on decentralised platforms. Lately current incubants of finance Have taken notice.
Everyone from Goldman Sachs to Microsoft are starting to incorporate blockchain into their business. As time goes on and technology advances, the ability to scale on the blockchain will explode exponentially, sidechains, oracles and yet to be invented technologies will lead us to the the path of scalability with the likes of an Amazon, Microsoft, Walmart or even your favorite Tik-Tok Influencer launching their own digital or crypto currency!
Granted by scaling the blockchain we are most Likely making the blockchain more centralized. Future hubs and onramps such as Tendermint and lighting networks may allow users to turn on and off blockchain usage allowing everyone to run a node on their smart phone. Only time will tell as no one can predict when the intersection of artificial intelligence, edge computing software and blockchain technologies will trigger the holy trinity of tech and bring about the age of singularity.
Disclaimer. This article is for informational purposes only and does not constitute investment advice. Disclosure The author may hold Bitcoin and/or Gold. This this article is for informational purposes only and does not constitute investment advice. Any one considering an investment in cryptocurrencies should consult their own financial advisor.