Six Blockchain Predictions for 2021
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While blockchain is an innovation in technology unlike any other before it, its progress and impact on our society—both supportive and discouraging—must be taken into consideration when predicting its behaviors for 2021. For instance, when making such predictions, you must thoughtfully consider facts relating to technology, social history, current macro politics, and current national fiscal policy as it pertains to the incoming administration. This provides a more disciplined and practical view of Blockchain trends as we approach a new year. Here are a few of the top transformative trends to keep an eye out for in 2021 –
1: Blockchain and Crypto Take Technological Innovation to Another Level
Technology crosses the threshold this year to more fully define Blockchain and Crypto on a much clearer level, leading to acceleration of innovation in every technological advancement that Blockchain and Crypto touches, including:
- Software
- Hardware
- User interfaces
- Financial systems
- Logistics,
- Health
- Education
As a result, myriad innovations based on Blockchain DLT or using Tokenization will be delivered for use that will pay for infrastructure like 5G as well as hundreds of millions of dollars invested in the Tech and Entertainment sectors. For example, 5G will dramatically increase the inflow of information from IoT and Big Data, and Blockchain will emerge as the engineering beam that constructs the architecture of our personal data in a more usable way.
2: Bitcoin Finally Grows Up
Bitcoin will “grow up” and in this maturation phase, its value will be based more on sound metrics, such as:
- Easier-to-identify purposes and uses
- Realistic caps on future valuations
- Less unsubstantiated hype
- Placement of Bitcoin and other coins in different tax and regulatory classes
- Development of a new, accurate model to predict crypto behavior
Thus, Bitcoin will rise even more due to, among other things:
- Economic policy
- The lack of alternative high-return investments
- Relaxing of regulations
- Spread of use in retail
- Increase in investment through Goldman/Merrill Lynch/Chase and other wealth management firms
- Residual hype
- Lobbying
3: Chase Takes the Lead
As Chainalysis predicted, banks acting as custodians for Crypto will soar, with Chase leading the world. Chase and others will provide the OCC mandatory standards for clients. This will lead to a new asset class offered by investment firms.
As Chase takes the lead, the great value of the ConsenSys/Quorum platform combo will become apparent, leading to its prosperity and stability via JP Morgan systems. Ultimately, Chase will create one of the best complete and vertical interoperable marketplaces for Cryptocurrency, DLTs, Custody, and traditional Market/Exchange systems, thereby making it and its assets true stores of value either in cash or brand identification.
Overall, the JPM Coin will be recognized for its genius, and smart money will dive into it because it will truly be a “store of value” while Bitcoin still will not be, primarily because Bitcoin will still be:
- Purely speculative
- Lacking a Buffet Moat
- Failing to meet the three original requirements
- Permissionless
- Anonymous
- Decentralized.
4: The Celsius Network Heats Up
The Celsius Network vertical investment and spending system will expand in popularity, ensuring it emerges as one of the digital currency hubs that endures, dominating its arenas. The Cel is designed specifically enough to avoid IRS problems, yet it simplifies all the processes so that it brings the “spirit” to using a Utility Token or system like Celsius for purchasing, investing, borrowing, and exploring opportunities. Products to assist with nurturing a “Virtuous Society” are built into every aspect of Celsius, reflecting the important role the humanities play among the other sciences in Blockchain expansion and benefits to disrupted systems.
5: The COVID-19 Pandemic Forces a “Hard Reset” for Foreign Currencies
Economic policy amidst the pandemic will cause Bitcoin to rise since it is valued in dollars. The economy will get worse, necessitating further government aid. This will lead to more printing of money that by definition dilutes the value of the U.S. dollar; however, this does not mean that it loses buying power abroad, and this can be shown in recent history. The Bush/Obama Stimulus QE caused eight top global currencies to do a “hard reset” so that when they lowered the value of their currency, the U.S. still could buy as much per dollar. The only nation that does not practice this is Singapore.
6: Libra/Diem to the Rescue?
Facebook will release Libra/Diem now that politics and the Cabinet are more favorable to them. This will either happen in a calm release, or in a dramatic, last-minute, and last-resort moment when a Great Depression or similarly devastating market crash happens and The Fed/Treasury allows Facebook, Google, and Amazon to prop up consumerism by releasing their Coins or Tokens, thereby making heroes of the Tech Giants while The Fed swallows a “poison pill” and adds stimulus.
The Takeaway: If You Thought 2020 Was Turbulent…
As global economies look to recover from the pandemic while the vaccines are distributed and societies everywhere attempt to get more back to “normal,” look for major developments both in Blockchain and as a result of Blockchain, as moments of desperation mixed with disaster preparedness and planning for the future will move many industries, technologies, economies, and currencies forward like never before; that is, not without a turbulent and challenging several months.