Based on a post to Nasdaq by Dave Hodgson, co-founder, and director of NEM Ventures, the NEM blockchain investment division, through the first half of 2019 Looking back on trends in cryptocurrency and blockchain technology.
In 2019, several regulators are beginning to be involved in blockchain technology and distributed ledger technology (DLT).
Financial Activity Working Group (FATF) recommendation on cryptocurrency trading, UK Financial Conduct Authority (FCA) approves hedge fund, various organizations involved in Facebook’s Libra project, German regulators digital pound There were many events such as approval.
These are positive steps for the industry as a whole. I think that there has been a possibility that the number of companies and projects dealing with cryptocurrency technology will increase in the future as a result of switching to a movement that approves apart from the regulations so far.
In 2019, institutional investors are increasingly interested in cryptocurrencies. First, JP Morgan announced the development of its own currency, and Societe Generale issued securities tokens. Nasdaq began posting cryptocurrency liquidity index for institutional investors, and in the UK Prime Factor, Capital was approved as a cryptocurrency hedge fund.
These can be attributed to the growing trust of institutional investors. These advances are widely reported on financial information sites such as Bloomberg, CNN, Reuters, and the Financial Times.
Blockchain in the technology field
Major technology companies are also beginning to show movements related to blockchain. Amazon Web Services (AWS) has launched blockchain as a service (BaaS), and Google and others are doing the same. Facebook has declared its entry into cryptocurrency in the Libra project and plans to partner with Uber, Paypal, Lyft, Visa and others. Chinese companies may also innovate in these areas, and the US influence on the global economy may be mitigated by Chinese companies.
Interest from the retail market
Since the end of 2018, there has been increasing interest from projects and companies that provide services to individual investors. Medium-term price increases may further increase the retail market interest.
Realistic use case
Blockchain technology is not an immediate solution, but the number of good applications is increasing. New technology needs to prove to be accepted by the public just like any other technology.
Applications related to IoT (Internet of Things) and AI (artificial intelligence) are increasing in the fields of healthcare, energy, and supply chain. Many companies and others are beginning to incorporate blockchain and DLT into their long-term vision and solutions. According to Deloitte’s May 2019 report, about 83% of respondents, primarily corporate executives, recognize an attractive use case for blockchain.
Increased structured finance
In contrast to 2017 ICO funding, security tokens and initial exchange offerings (IEO) have increased investment-related maturity. This maturity will lead to a full acceleration of the adoption of blockchain and cryptocurrency technology. The financial system, such as away from investments in stocks and bonds, negative interest rates, and quantitative easing, is thought to be due to this acceleration.
Increasing interest in technology through winter
I feel that cryptocurrencies and blockchains are becoming more and more interested as the market rises. 2018 has been said to be a cryptocurrency winter, but I think that interest has increased again in 2019. This may be due to the fact that various regulatory authorities have approved some cryptocurrency-related issues, and that global companies have become more aware of cryptocurrencies and have entered the market as a result of their entry. unknown.
Cryptocurrency and blockchain technology and their adoption are still in the early stages of development, and there is a great potential for future growth. I would like to follow the cryptocurrency market in the second half of 2019 while recognizing that area.