Some might say that the popularity of cryptocurrency and certainly its value, has a tendency to wax and wane. While some are dubious about the real world impact of cryptocurrency, its rate of adoption, and whether it has the potential to replace, or at least exist successfully alongside fiat currency, blockchain has remained consistently popular.
Blockchain, the technology that underpins cryptocurrency, can exist as a standalone technology and it has been adopted across a multitude of industries, even those that have shunned crypto such as banking. Over the last year, the industry has grown and grown and intersected with other markets such as iGaming, fintech, finserv, business, government, logistics, hospitality, and even food, drink and luxury goods.
As we head towards the end of what has been an exciting and innovative year, let us look ahead to what trends we can expect to continue, or emerge in 2020.
Not ever blockchain startup will succeed
Throughout 2019 there was a big increase in funding for blockchain startups but blockchain as a technology is still flawed and immature. As a result, many startups did and will fail due to investors and entrepreneurs rushing into things without taking due care and attention. This doesn’t mean you shouldn’t try to realise your dream, it just means that if you have a good idea, it is best to cultivate it, set up in the right jurisdiction, and ensure you take the best legal, corporate, and business advice possible to ensure you are on the right road.
Finserv will lead in blockchain adoption
The finance industry doesn’t need to make too many radical changes in order for it to successfully adopt blockchain technology. Already, some of the world’s largest investment banks and banking institutions have taken serious steps towards implementing blockchain processes and products into their business models. Back in 2016, ReiseBank AG in Germany completed blockchain payments in 20 seconds and according to PwC, 77% of banks and financial institutions will be adopting blockchain technology by the end of 2020.
National cryptocurrencies will appear
Russian President, Vladimir Putin was one of the first leaders to suggest national cryptocurrencies in the form of the “Crypto Ruble”. Whilst it has not yet materialised, sooner or later, governments will have to recognise the benefits of digital currencies. Some countries remain steadfast in their distrust of crypto such as China and India, whilst others including Ecuador, Singapore, and Venezuela have issued their own. Gartner predicts that by 2022 a further five countries will launch an official national cryptocurrency.
Blockchain will be used by governments
The concept of distributed ledger technology (DLT) is an attractive one to government agencies that need to maintain and administer large swathes of data. Within a country’s national infrastructure, most agencies have their own, separate database which means they have to constantly request information from other departments. By introducing blockchain technology, data can be shared across infinite nodes, enabling more efficient data management.
Blockchain specialists will be in high demand
By the end of 2020, developers with expertise in blockchain are expected to be some of the most in-demand professionals. Despite the popularity of blockchain, there is a deficit of individuals with experience in the field whilst the demand keeps on rising. Moving into blockchain, developing skills in the area, and finding your niche as a specialist could be the smartest decision you have made all year.
If 2020 is the year that you are considering making a move into the world of blockchain, get in touch with Fast Offshore. With over two decades of corporate, financial, and business experience in a range of jurisdictions spanning multiple continents, we are your best bet for realising your vision. We can assist you in setting up companies, opening bank accounts, making business plans, and applying for any necessary licenses and permissions that you may need in order to operate in the blockchain sector.