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There is no other way to say it: 2018 was a real roller coaster for the blockchain world.
While it started with a historic surge towards an incredible $ 900 billion encrypted market capitalization at its height, the market has returned to a disastrous rate of nearly 90% from those glory days.
Despite countless financial analysts and cryptographers predicted heights of up to $ 60,000 per bitcoin in 2018, the year, unfortunately, proved to be one of the worst for the encrypted market.
However, now is the time to focus on the future. To prepare effectively for the next year, you should definitely look at the following areas of the blockchain world.
1. Funds traded on Bitcoin Exchange (ETF)
Date to Watch: February 27, 2019 – Decision date of the VanEck and Solid X Bitcoin ETF
Bitcoin ETFs have undoubtedly been one of the hottest topics of the last 12 months, mainly because they are considered a potential catalyst for rapid price increases of bitcoins and other cryptocurrencies.
An application of the ETF, in particular, has been declared as a possible turning point. The collaboration between the investment company VanEck, the blockchain company SolidX and the Chicago Board Options Exchange (CBOE). It is one of the few physical ETF proposals that is seen as promising by various financial experts.
If a commercial vehicle of this type has been approved, the issuer of the ETF should actually buy real bitcoins from a stock exchange or, more likely, over the counter (OTC). A potential ETF of this size requires tens of thousands of bitcoins, and the ensemble would need to acquire them, which could lead to a rapid rise in price.
In addition, an ETF would allow investors and traders to exchange bitcoins on a traditional exchange, which would also help the digital currency gain popularity and availability.
Unfortunately, the US Securities and Exchange Commission (SEC) has not yet decided on the ETF presented by VanEck and SolidX. The final decision was postponed several times, however, the SEC announced an ultimatum on 7 December 2018. The Commission chose on 27 February 2019 as the day for the approval or disapproval of the proposal.
Although dozens of established cryptocurrency specialists, such as CNBC expert Bill Barhydt, believe we will see the ETF's approval in the coming months, it remains to be seen whether the SEC is convinced it is the right time to unleashing the first physical fund traded on the stock exchange for Bitcoin.
Further reading: What is a Bitcoin ETF (and will it cause Bitcoin prices to rise?)
2. Titles with Tokenized
"Security tokens, not utility coins, will attract significant amounts of Wall Street money next year."
Security tokens or tokenized titles were certainly order words that have grown over the past 12 months in crypts. This is, of course, because tokenized resources are one of the most promising innovations in the blockchain industry, as they could disrupt the business and financial world.
Rohit Kulkarni, CEO of SharesPost, one of the leading private-sector markets, firmly believes that 2019 will be the year of tokenized securities. In a recent article on the Nasdaq, Kulkarni stated that "Security tokens, not utility coins, will attract large sums of money from Wall Street next year."
Despite the missing regulations are often seen as a major obstacle to the growth of the sector, Kulkarni is confident that the space will mature in the near future. "Ultimately, we expect a more stable regulatory environment over the next six to twelve months," he said.
In 2018, many companies have already begun to engage in the security token industry. Overstock, for example, has become the first billion-dollar company to start building its security token exchange, which should open bargaining during this year.
In addition, Open Finance became the first US-based security token exchange that became operational on December 13, 2018. With traditional exchanges, such as the major exchanges of Switzerland and Malta, forming partnerships to create security token exchanges, The industry is undoubtedly worthy of keeping an eye on 2019.
Further reading:
Nasdaq shares on Blockchain: you can now buy barcode shares in Apple, Tesla and Facebook
Real Estate on the Blockchain: is the token property a reality in 2019?
3. Nasdaq and New York Stock Exchange participate in Crypto
Date to Watch: End of January – The planned launch of Bakkt.
The two biggest exchanges in the world will enter the crypt in 2019: the New York Stock Exchange and the Nasdaq.
Bakkt, a cryptocurrency exchange built by ICE, which is the parent company of the NYSE, has planned to launch the first bitcoin futures supported by the physicist on January 24th. Although the departure has already been postponed several times, encryption enthusiasts still see the exchange as a potential revolutionary for the involvement of institutional investors in the market, thanks to the reputation and experience associated with its operator.
Meanwhile, Nasdaq is following Bakkt in his mission and recently announced that he was also working on the future Bitcoin trading for 2019. Further news from Nasdaq include the exploration of security tokens and a potential exchange of such assets over time. following.
Although it is not yet certain what kind of future security token will exchange the NASDAQ, it will continue to show that some of the world's largest financial firms are not afraid of the general market sentiment of 2018. "The concept of having a digital currency that allows the transfer of money across borders, which really transcends the banking system and allows a seamless transfer, is really fascinating and that we have to assume will become part of the internet ecosystem" Adena Friedman, CEO of Nasdaq, commented on digital currencies such as bitcoins.
Further reading: "We are doing this without importance"; Nasdaq confirms the launch of Bitcoin Futures
4. Storage and storage solutions
Loyalty: we will create "digital native resources, like bitcoin, more accessible to investors"
$ 1 billion of cryptocurrency was stolen in 2018 with high-profile hacking hackers who hit newspaper headlines. Keeping cryptocurrency in an exchange is risky. And while you keep the bitcoin in your wallet in your pocket, you risk losing your wallet.
That's why custody and storage solutions will be a huge point of discussion in 2019.
As for institutional investors, bitcoins or storage solutions are seen as major obstacles to attracting large fish to the encrypted market. Most institutional investors are prohibited from investing in assets unless they are kept in safe custody by highly specialized companies,
Coinbase and other blockchain companies have already created new asset asset encryption solutions in 2018. Fidelity, a well-established asset management company that manages its clients' assets with a total value of approximately $ 7 trillion, decided to "create native digital resources, like bitcoin, more accessible to investors" and founded a new branch focused on storing digital resources for its customers. According to CNBC, the company is already about to perform customer onboarding and should launch its platform at the start of 2019.
Some say we should even expect the largest banks to join Fidelity and Co. in providing bitcoin and other cryptocurrency services. As stated in several reports, Ripple's CEO, Brad Garlinghouse, at the Singapore FinTech festival in 2018, said that banking institutions are going to offer solutions to secure blockchain assets to their customers over the course of next year.
5. Over-the-counter trading (OTC)
The Circle Trade OTC desk
Circle last year reported $ 24 billion of OTC encryption
OTC or over-the-counter trading is another keyword that appears here and there when analyzing the stories related to the 2018 blockchain. OTC trading is the private purchase and sale of cryptocurrencies , often in large quantities, outside the main exchanges.
OTC Bitcoin coverage has increased in the media and social networks, but the same trading activity seems to have increased in 2018 as well.
With the OTC trading platform of Goldman Sachs, which recorded $ 24 billion in OTC trading last year, it is considered a real money-making machine. "We have seen three-digit growth in our OTC business, which is a big growth area" he cited Jeremy Allaire, CEO of Circle, in an interview with Bloomberg in October.
As a result, some of the largest cryptocurrency exchanges are now working on their OTC trading desks or, as far as Coinbase is concerned, they have launched one in a few months.
Binance, on the other hand, has decided to act in a different way, given that its newly founded investment wing, Binance Labs, has recently invested $ 3 million in a US OTC desk called Koi Trading.
With major trade in the OTC sector, the sector will probably play a key role in the blockchain world in 2019.
Further reading: What is OTC Bitcoin trading? Inside the mysterious world of the rich and nebulous
6. Banking and Blockchain
Create a "seamless experience for storing and managing digital assets"
Banking institutions around the world are already experimenting with blockchain technology to improve cross-border trade and day-to-day operations. In 2018, different results have been made and could give us a perspective on how the next 12 months could be for the banks.
The first real transactions with customers between several large international banking institutions were conducted on the We.Trade blockchain platform on 3 July 2018. This event is considered a milestone for the adoption of the blockchain, as institutions from all sectors they were not interested in leaving their sandbox test environments.
While consolidated banks are continually pushing forward the adoption of distributed accounting technologies, new players are also looking to create banks focused on blockchain assets.
Small offshore destinations in the Caribbean, e.g. Bermuda, recently announced an update of its banking legislation in favor of technology and blockchain assets. In addition, a young company called EQIBank, founded by former bankers of HSBC, UBS and Credit Suisse, has just opened their first client accounts in December 2018.
EQIBank aims to provide uninterrupted experience for the storage and management of traditional and digital resources, as stated in a recent press release. This can certainly be regarded as an imminent trend as crypto startups around the world are currently applying for bank licenses in their countries.
7. The cryptocurrency insurance sector
"Evolution is dramatic"
Insurance giants, such as MetLife and Allianz, are often considered blockchain researchers and adopters. Fairly fair, considering that transparent records and smart contracts seem to be the perfect improvements for an insurance company's day-to-day business. The most promising use cases include, but are not limited to, the automation of payments once the terms of a complaint are met, increasing transaction transparency, storing information and activating blockchain-based IoT processes. .
Ryan Rugg, global insurance manager for R3, believes that the current evolution of insurance companies is a huge leap for industry. "These developments would be innovative in any industry, but if you consider that the processes underlying the insurance industry have remained largely unchanged for hundreds of years, the evolution is even more dramatic," Rugg explained in an article on BlockTribune. Speaking of the future, Rugg also stated that "2019 will undoubtedly see the insurance industry entering the next phase of its digital transformation".
Further reading: Cryptocurrency insurance: what is it?
8. Regulatory developments
"We need appropriate regulations to be implemented and applied to safeguard investor interest"
2018 has certainly seen some considerable developments in terms of global blockchain regulations. With Malta officially becoming a blockchain island, smaller jurisdictions open up to security tokens and the SEC eventually breaks down most of all the controversial ICO, the clearly advanced blockchain space and is about to become a # 39; mature industry. However, there are countless regulatory problems that hinder the global adoption of blockchain technology and services.
With 2018 as a basis, we will most likely see exponential advances in the following years in major jurisdictions, such as the United States and the European Union. In fact, there are already several signs that validate this hypothesis. On October 18th, the SEC announced the launch of a new FinHub, where regulatory approaches to new financial technologies, such as blockchain, are studied and assessed.
After Singapore, Malaysia is another Asian country that wants to introduce new legislation for blockchain the next year. "While some parts may still be skeptical about this space, there is no doubt that we need appropriate regulations to be implemented and applied to safeguard investor interest," said Lim Guan Eng, Finance Minister of Malaysia. In Liechtenstein, the government is currently working on the Liechtenstein Blockchain Act, which should pave the way for institutional investors in 2019.
Other countries that should unveil updated laws for blockchain include United Arab Emirates, Israel, Russia, Thailand and seven major states within the EU. The ball is finally rolling and global regulations in various areas of distributed ledger technology seem to be closer than ever. We certainly have an exciting year ahead of us and maybe we will look towards one of the most productive years for the blockchain industry of all time.
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