US Works on Blockchain Development, while others give priority to adoption
The week of May 14, 2018 was blockchain 1 week in New York and if you did not pay attention, not you can no longer ignore this potentially revolutionary technology. More than 8,500 people attended the Consensus Conference from the 700 just a few years ago. Beyond the juicy headlines – things like Snoop Dogg playing a private concert for Ripple 2 supporters – is a trend that takes shape, which many US investors may not have seen.
My biggest takeaway from Blockchain The week is that huge amounts of cryptocurrency 3 and blockchain are happening in Asia. I noticed this trend when I traveled to Hong Kong in March. While the United States was struggling for regulatory clarity, Asia had taken the crypto-sphere and ran with it. The collateral conversations I had during Blockchain Week confirmed my observation from the beginning of this year. Asia is the main market for the use and adoption of cryptocurrencies.
Did you know that China has quietly taken first place in the blockchain and cryptocurrency patents? That's right, China, the country that has banned cryptocurrencies too many times to count. China holds triple the number two applications in the United States, according to Forbes. The number of Chinese patent applications related to blockchain and crypto has almost increased fivefold since 2016.
In India, the Infosys conglomerate is launching a blockchain-based commercial network called India Trade Connect. Infosys is working with seven Indian banks to help "digitize the commercial processes of commercial finance, including property validation, document certification and payments," according to a company press release.
On 14 May HSBC (HSBC) announced the first finance transaction exchange using the blockchain platform: a letter of credit issued to the US agriculture giant, Cargill. And there was a smattering of the adoption of blockchain announced in Israel (blockchain-based securities loan), Russia (a blockchain-based bond purchase), Spain (blockchain-based proxy vote) . Even JPMorgan (JPM) has recently appointed a crypt development manager in the UK, rather than in New York headquarters.
The bottom line: do not judge the momentum blockchain (and by crypto extension) from what is happening in the United States
China launches the new Crypto index – Rank Ethereum 4 # 1
China, which has proven to be a wet blanket on cryptocurrencies so far, has recently launched a new cryptographic index. The apparent reason is a "lack of objective analysis" in the cryptographic space, according to the government agency that manages the index. Color this skeptical weathered investor on their logical basis.
Ask yourself why a country that prohibits commercial encryption launches a cryptographic index sponsored by the government and one that explicitly classifies the usefulness of cryptocurrencies? If cryptocurrencies remain really banned in China, this index would not be needed.
The initiative is not only surprising, but so are its results: ranking Ethereum number one and Bitcoin number 13. (More on this in a future post.)
My point of view is that China realizes that the immutable audit trail of the crypt could be useful to the government. As discussed last week, I do not think China will give up the encrypted space to regional leaders, Japan and South Korea. And China's recent moves do not seem to be the actions of a country willing to shut down cryptocurrencies forever. They look like delaying tactics. I believe that China is able to "cancel" cryptography, with the blessing of the central bank, once they understand how to create a state control system.
Bottom Line: pay attention to what the big players are doing not what they are saying As the saying goes, paying attention is the cheapest thing you can do.
My Two Cents
If one takes a step back to see what the greatest players are doing in the crypto-blockchain space, what you see is speeding up adoption outside the United States, particularly in Asia.
Crypto is thriving in China, although the government is drafting its regulatory framework. Japan now recognizes cryptocurrencies as valid means of payment (as long as they are registered with the government). Blockchain is finding new applications in financial markets in Japan and India. South Korea has made a turnaround and is trying to figure out how to regulate and tax its booming encryption markets.
I cut my teeth as a trader during the telecommunications boom and the Internet of the years & # 90; and the spirit of adoption through Pacific reminds me of what I've heard from the telecommunications analyst over the years & # 39. ; 90 on Latin America. While analysts were busy assessing the potential expansion of landline telephone systems by traditional telephone companies, Latin American consumers were busy bypassing legacy technologies in favor of mobile phones.
The United States has a highly efficient banking and payment system. So I do not see as a mystery why the adoption of the criptoblocchain has been slower here. At the same time, it should not come as a surprise that experienced Asian consumers are ahead of the curve of adoption, particularly in areas where it allows them to bypass obsolete outdated systems.
The key message here: global adoption is accelerating, but if you are only looking at the United States, you will lose this story.
Looking at the whole global picture, history is growth – in the overall ecosystem, the diversity of applications residing there, and the value they can create for consumers, businesses and investors.