A research paper by SharesPost consulting has revealed the perspectives of the blockchain industry. Scientists believe that the cryptocurrency and blockchain startup market could rise 15 times over in the next ten years, reaching a total market value of $2.5 trillion.
Why it is important
- The popularity of cryptocurrencies is steadily rising according to a study conducted by Capgemini - a consulting firm. 30% of well-off people are “highly” interested in crypto with 70% of young people following the latest developments in the industry. 1. The Bank for International Settlements (BIS) thinks that introducing blockchain technologies into the financial industry is a worthwhile pursuit. This view is echoed across the world as several central banks are beginning to develop their own projects.
Economists have separated the blockchain market into 20 separate areas and evaluated how each one could develop during the next ten years. Researchers have concluded that in areas of product delivery, security and financial services the rise could be as high as $400 billion dollars while for online-transactions and infrastructure this figure could exceed $200 billion.
“Blockchain is becoming increasingly important to individual and institutional investors who are looking to enter the markets most impacted by the technology.” according to Rohit Kulkarni, Managing Director and Head of Research at SharesPost.
Experts have also identified four ways to invest in the blockchain market:
- Cryptocurrency investments. SharesPost saying that the combined value of the top five digital currencies (bitcoin (Bitcoin: BITCOIN), ethereum (BITFINEX: ETH/USD.BITFINEX), ripple (EXANTE: XRP.EXANTE), bitcoin Cash (EXANTE: BCH.EXANTE), litecoin (BITFINEX: LTC/USD.BITFINEX)) now stands at around $500 billion, but only a year ago it was at $100 billion.
- Investing in companies that introduced blockchain. Experts consider this to be a much safer option. Also, firms such as MasterCard (NYSE: MA.NYSE) and Visa (NYSE: V.NYSE) have begun using a distributed ledger to minimize their expenses and simplifying cross-border transactions. IBM (NYSE: IBM.NYSE), Walmart (FWB: WMT.FWB) and other global firms are also planning to introduce blockchain projects.
- Investing in tokens through ICO’s. In 2017 blockchain startups have managed to gather around $6 billion through 500 ICO’s. For example, South Korean Hdac has managed to attract $258 million through an ICO, and the blockchain platform Tezos attracted $232 million.
- Investing in Blockchain startups. Accredited investors may invest capital through venture funds or through a secondary market. Among the biggest startups in the U.S., the most prominent are Circle, Coinbase, Ripple, Bitpay and Chain.com.
SharesPost is a research firm that consults a number of high profile tech firms. In 2017 it conducted its own ICO and in 2018 it’s planning to launch a platform for digital asset trading.