Weekly cryptocurrency review #9
World Economic Forum: Blockchain can add $ 1 trillion to world trade by 2028.
Thursday's World Economic Forum (WEF) report states that Distributed Ledger Technology (DLT) such as blockchain could generate $ 1 trillion over the next ten years.
The report, titled "Trade Tech-New Age for Trade and Supply Chain Finance", published in cooperation with Bain & Company, evaluates the prospects of DLT in the global trade finance sector.
Trade finance has been based on existing technology for a long time, but many current blockchain-based initiatives are currently focused on increasing efficiency:
"The distributed accounting book and other technological innovations promise breakthroughs in the financing of trade and the supply chain by reducing costs and ease of use," we read in the preface to the report.
Among the conclusions of the report is also a direct forecast of DLT, whose use in the new commercial conditions may help to eliminate the current financing gap of 1.5 trillion USD:
"(About) 30% or 1.1 trillion of new trades will result in the removal of DLT barriers, and (approximately) 40% or $ 0.9 trillion of existing traditional trade turnover will be transferred to DLT technology for better service levels and lower charges".
In the meantime, the WEF report contains similar signals and guidelines for governments, and the organization claims that even in structures of the European Union, the implementation of DLT is basically inevitable. The report says:
"(Implementations) should include distributed accounting technology as part of any relevant forward-looking regulatory considerations, such as cross-border food imports."
Finally, the report states:
"When some governments begin to do these moves, the marauders will be more and more affected."
Blockchain will also revolutionize the world of banking?
The implementation of DLT-based Blockchain technology is applicable not only as a powerful tool in the hands of governments, but it can also revolutionize the world of finance and banking.
In an interview with Business Insider Polska, Zoe Adamovicz, CEO of Neufund (a token available on BitBay), said:
"Blockchain and tokenization is introducing a new trend that has no turning back." The boom towards very sharp capitalism has reached its maximum and we are witnessing the fight for a fair redistribution of wealth. It is only a matter of time. "
Banking based on the Blockchain network introduces a greater sense of justice and redistribution of goods. First of all, it allows you to use it all over the world, which saves those local communities that have not been covered by the fact that they live on a given latitude. In addition, it also introduces greater transaction transparency and greater security. It can also be an effective weapon in the fight against hyperinflation (as shown by the example of Venezuela or Iran).
Zoe Abramovicz continues:
"Of course, some banks are already starting to work on it, but they do not operate on Blockchain and it can not be introduced overnight. In addition, the brokers that banks use today or are themselves - they will disappear. Imagine how the transaction that started our conversation would take place in the Blockchain system. If I sell you 1 ETH for some part of BTC, everything happens "itself" - without intermediaries and banks. Everything is registered in Blockchain, an unquestionable and reliable system that can not be broken, which is fast, does not need middlemen and is cheaper. "
Faster, cheaper, safer, more credible and more transparent - in the description of Blockchain technology the superlatives themselves dominate, and as it will be with the actual introduction of this technology into everyday life - the time will show. In any case, you have to be optimistic, because what good can pessimism give us?
The cryptocurrency markets situation:
The cryptocurrency market reacted positively to last week’s overall positive news, although total volume fell by almost 11%, and the total market cap increased a little over 2%. Overall, Bitcoin gained 2.5%, Ethereum 10%, XRP 1.3%, EOS 6%. Best performers among the top-40 crypto were Tezos (30%), Nano (20%), Bitshares (16%).
Bitcoin price reached almost $6,600, gaining 6.5% from the past week’s lows. At the time of writing, BTC has drifted back below $6,400 as the downtrend continues.
Ethereum spiked over 30% from last week’s lows of $170 to over $226 with an impressive 41% volume increase in just 48 hours. Positive news from Ethereum core developers about sharding progress were much needed for bleeding ether.
The performance and the market capitalization of top 40 cryptocurrencies are presented on the chart below: