The Path of the Economy
With the little time I can afford to dedicate to blockchain, I thought I would a recap recent events and add my two bits about what we might see in the near future. Allow me to start with three primary concepts that draw correlations between the coronavirus, blockchain, and traditional financial markets like the Dow.
#1 The Nature of Change
The coronavirus is causing mass panic that will allow governments and other large organizations to take actions that would otherwise be unacceptable.
#2 Unseen Change
Blockchain technology is already being employed for supply chains and logistics by large corporations that substantially impact traditional financial markets. Many of the companies on the Dow Jones Industrial Average are seriously looking into, or already employing, aspects of blockchain to make their operations more efficient.
#3 Changing Portfolios
In recent years, blockchain has shown rare signs of independence from the ups and downs of traditional markets. For instance, Bitcoin outperformed gold over several months. More recently, investment analysts and mutual funds have recommended including Bitcoin and even Etherium in their portfolios. This has given confidence to the crypto market. It is a confidence that appears to be gaining momentum all while coronavirus hysteria tracks down the Dow.
Connecting the Dots
Each of these concepts could independently become a substantial driving force behind the blockchain industry and cryptocurrencies for small business and individual consumers. When we take them all together, it is hard to imagine the industry not beginning to blossom this year (or at that the latest by 2022).
Opinion
My personal belief is that blockchain and artificial intelligence will combine to do something very special. Development shifting to browser-based applications to cater to a mobile first world will bring tokenization to the internet. Several developers and blockchain professionals have put forth the idea that we will one day see a network that connects all blockchains. Projects like Liquid Apps and several others are working toward this goal.
Beyond Protocols: Blockchain is a Movement
If you doubt a interconnected blockchain network, you do not need to look further than what's happening here with Steemit and Tron. This might be a great use case to compare the differences between being absorbed through a corporate merger versus reprogrammed through blockchain networking. A merger might just be more costly than building a bridge across blockchains. This could also show us how to be more opportunistic with latent resources
Conclusion
I'd be the first to say that some of my ideas here are highly speculative. If you take away three things, let them be the following:
- Change that occurs during mass hysteria often persists.
- Large corporations employment of blockchain will grow because blue chip companies only make substantial investments in certainty.
- If the blockchain industry has overcome the influence of traditional markets, we might witness a transition much grander than the impact credit cards had on paper money and it may occur within the next year or two.
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