The Crypto Economy

The Crypto Economy – Guest Blog

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By Rohit Talwar Futurist and CEO – Fast Future and Kapil Gupta – Crypto Specialist and Founder Nibana.Life

What key impacts could the rise of the crypto economy have on the economic landscape and the management of personal finances?

Alongside the continual evolution of the pandemic, one of the other big stories of the decade so far has been the rise of the crypto economy. In the space of 18 months blockchain technology and the underlying crypto assets (currencies and tokens) that it enables have risen up the agenda for individuals, investors, businesses, and governments.

Many people now know of Bitcoin – a digital currency launched in 2009 as a direct response to the financial crisis of 2007-08. Some are aware of its status as the fastest growing asset class in any ten year period in history. However, less people appreciate that the crypto economy now extends far beyond Bitcoin to cover a wide range of assets and applications.

In just 13 years we have seen the crypto economy rise to a market capitalization of over US$2 trillion at its peak in May of 2021. Starting with Bitcoin, a range of crypto assets have emerged utilizing blockchain as the core enabling technology for distributed and decentralized applications that cannot be controlled by any one entity. Of particular interest is the notion of smart contracts that allow transactions to be completed without any human involvement, thus enabling the emergence of decentralized autonomous organizations (DAOs) with no employees and governance controlled by the holders of the relevant crypto tokens.

The sheer scale of the opportunity is seeing market entry of large financial institutions, with a growing number of corporations adding crypto assets to their balance sheets and developing their own crypto token solutions. Countries like El Salvador are adopting Bitcoin as legal tender, and others like China and Ghana are piloting central bank digital currencies (CBDCs).

With an estimated 300 million+ global users,[1] the field is still in its infancy. Concerns remain over the unregulated nature of the market, volatility, and the potential for fraud and manipulation. The largely tech-savvy crypto community have high hopes of disrupting the traditional financial system, helping take people out of poverty across the planet, and creating a fairer and more transparent marketplace for investments, savings, loans, and more complex products. Corporations, financial institutions, and governments in particular are torn by the desire to participate in and influence the development of the crypto economy while also worrying about the loss of control and the threat to their franchises.

rohit@fastfuture.com

kapil@nibana.life

www.fastfuture.com

This article draws on a deeper exploration of the crypto economy in Fast Future’s forthcoming book Aftershocks and Opportunities 2: Navigating the Next Horizon

[1] https://triple-a.io/crypto-ownership

Upcoming Events

Fast Future presents: An Introduction to the Crypto Economy

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Date: Thursday 9 September 2021
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Fast Future presents: Core Components of the Crypto Economy

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Date: Thursday 16th September 2021
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Fast Future presents: The Future of the Crypto Economy – Presentation of Survey Findings

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Date: Thursday 23rd September 2021
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