Do not blow black, a quick overview of the 2019 cryptocurrency 10 development trend

Digital asset management company CoinShares released a cryptocurrency trend report yesterday. Working with top research companies, institutions and companies, they pointed out important trends in shaping this area.

CoinShares wrote at the beginning of the report, "The best knowledge needs to be shared." In order to develop the cryptocurrency industry, "participants and external analysts must be able to discover, collect, and analyze data to illustrate the importance of the industry."

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This in-depth report is 134 pages long and this article lists some of the highlights.

1. Macro trends create conditions for Bitcoin

This report first reviews how we have come to this point. It seems that the combination of all macro trends has created the “perfect storm” of Bitcoin.

In 2019, the gap between the rich and the poor is growing. Warren Buffet, Bill Gates and Jeff Bezos own more than half of the US assets.

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At the same time, the level of automation in the workplace is increasing, and political tensions and turmoil in countries such as Iran, Venezuela and Hong Kong are increasing, and society's resentment against capitalism and large technology companies is also increasing.

In addition, people’s trust in banks and governments is also decreasing. More than 90% of people think their government is corrupt to some extent.

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Although these external pressures don't seem to be a trend toward cryptocurrencies, they are working together to "build a stage" for Bitcoin.

2. From hype to maturity

In the general public, blockchain has become more and more boring. We see a shift from emergence and frenzy to synergy and maturity.

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The search volume for "bitcoin" and "blockchain" declined. Research firm Gartner concluded that most blockchain applications will not have any meaningful impact for at least 5 to 10 years. This has caused us to fall into the "low valley of disillusionment."

The number of blockchain conferences has been reduced overall, and overall investment has decreased, but as the industry matures, “construction” continues.

3. From consumers to institutions

In the past few years of bitcoin experience, this is one of the most obvious trends we have seen – the transition from the average consumer to the institutional user.

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The shift is marked by a shift from self-hosting solutions, exchanges and wallets to lending markets and infrastructure for institutional investors. These solutions include BlockFi and Bakkt.

In addition, financial institutions are entering the field through TD Ameritrade, Fidelity, Bloomberg and Square.

4. From decentralization to centralization

The report points out that advocating decentralization may be just a false belief. The report even claims that "nothing is decentralized," including Bitcoin:

“As Bitcoin companies become more focused on institutional adoption, more Bitcoin will be managed by compliance entities.”

The report also issued a warning that as more and more companies enter the field with their own "cryptocurrency" to track and track our financial dynamics, "expected monitoring funds will soon be in place."

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5. The ICO that raised a large amount of funds failed because it failed to meet expectations.

The top ten ICO projects raised more than $8 billion. However, they all failed when delivered. More than half of the projects have not yet been launched, or have completely withdrawn from the market.

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When analyzing encryption trends, this indicates that no investment is 100% rewarding. Although ICO and STO seem to be dead, the report points out that the performance of the IPO market is not much better.

6. Stabilization of the stable currency

One of the most obvious encryption trends is the explosive growth of stable currencies in the industry. Stabilizing coins are becoming more popular because they are able to quickly settle transactions on the same settlement medium, which effectively makes the blockchain a clearing network.

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Interestingly, however, although the value of the stable currency market has doubled, USDT still maintains an 80% market share.

7. “First National Release”

More interestingly, the report pointed out that the number of “first national issuances” (ie, nationally issued digital currencies, abbreviated as ICOs) is on the rise. From the Venezuelan oil coins and the SOS of the Marshall Islands to the government-backed digital currency proposed by Turkey and China, this “race” seems to be going on.

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The report also throws a question: Who do you prefer between Nakamoto and "These guys"?

8. The initial financial experience of technology companies

From Zuckerberg to Apple and Uber, large technology companies are entering the financial industry. This will make their status the same as the central bank. Social networks are becoming a new payment network.

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The report concludes that the new era of digital payments will not be dominated by banks because they do not have the global reach or infrastructure of large technology companies.

9. The cryptocurrency derivative is on fire

Encrypted currency derivatives are very hot, with more than $3 billion in transactions per day on 13 large exchanges. Whether this will have a positive impact on this area remains to be discussed. After all, the introduction of compliant bitcoin futures has caused its price to plummet twice.

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However, with reference to the growth of gold since the launch of cash-settled futures (the current futures market is 30 times that of the physical gold market), this may be promising.

However, the report points out that the crypto derivatives market needs to be “more robust” and will require “to form better industry risk management practices”.

10. Interest declines, but penetration rate rises

If you analyze some key data, such as the power and the number of accounts, you can see that the penetration rate is rising. Although search volume, blockchain fundraising and market capitalization are lower than previous highs, the industry is still growing.

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The computing power on the Internet has now reached a new high, and the number of transactions on the chain has grown by more than 150% per day to reach $2 billion.

A lot of things will happen next year, and many things are unknown. However, as Meltem (founder of CoinShares) said, if you are centered and monitor the trend of funds, you are discouraged:

"The fire of reform is also spreading rapidly."