Cryptocurrency: Super Network Worth Quadrillions

in LeoFinance6 months ago

Every so often someone says something that is what you were thinking for years. It is vital we understand how big things are and how this will impact what we are dealing with.

Blockchain and cryptocurrency are going to change the world. It is a foregone conclusion. There will be a completely different data structure that is becomes the norm while innovation is going to happen on a massive scale.

Much of what we see today will be transformed. This is going to obliterate many industries, including some of the largest companies in the world.

When it comes to the financial system, it is vital to grasp how large it is. This is something that most do not take a look at.

Raoul Pal, in an interview, commented about the size of some of the different aspects of the financial sector. Most of this will eventually end up on blockchain and be tokenized.

Here are a few tidbits:

  • Global custody system $23 trillion
  • Total equities traded $70 trillion
  • Total global debt $260 trillion
  • FX global transactions $1.7 quadrillion
  • Derivatives $1.2 quadrillion
  • Settlements layer $4 quadrillion

This all adds up to a rather large number.

But there is more.

Total global debt market is $260 trillion. Non-gov debt is likely ETH. This doesn’t include total lending market which would double this… And then we can tokenize assets from real estate to intellectual property rights, from gaming skins to fixed assets, from securities to income streams. That is probably ETH.

Then we can add in global supply chains and other commercial networks… another few hundred trillion This is ETH, EOS and others.

And then we can add in trade finance, credit cards, stock lending and borrowing, repo markets for bonds, etc.”

Source

Of course, Pal's views are going to drive maximalists nuts.

All of this is not going to be taking place on one blockchain. Nor will it be happening on a few of them. Instead, we will see a network or many different blockchains linked together, engaging in all aspects of financial commerce.

We are literally talking about quadrillions of dollars worth of value and transactions. Considering the entire crypto market, right now, is about $550 billion, it shows how much growth potential there is.

All of this is also factoring where we are at the moment. Convergence is going to take place in a huge way over the next decade. We are going to see AI enhance these numbers considerably. This all ties into the Internet of Things (IoT) that is starting to take shape.


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In fact, the rollout of 5G, according to some, is going to really enhance crypto adoption across the globe. This communication network is going to be light years ahead of what we are dealing with now. The speeds that are coming are orders of magnitude faster than what we have today.

This is going to foster more activity, much of which will be tied to blockchain. As more is done via mobile networks, cryptocurrency is the ideal payment system. 5G will add greater security, something that crypto depends upon. With the advanced wallets, people will be able to interact for less money.

We even could see mining on networks such as Bitcoin enhanced due to the increased speed and capacity of 5G.

For traders, this is a gift from the gods. Wall Street firms spend huge sums of money to ensure they reduce latency as much as possible. 5G is going to take this concept even further.

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The sheer volume that is going to arrive means a lot of bandwidth. This is something that bodes well for all those chains that are developing in an effort to expand their offerings. All this traffic is not going to happen on Bitcoin and Ethereum, even with the later converging to Proof-of-Stake (PoS).

A key in all of this is to remain in the game. Development is going to take place for the next decade, constructing the infrastructure that is required to keep advancing. Those chains that do this are going to be part of the super network that eventually forms.

Recently, many got excited about Wall Street's entry into Bitcoin. Why do you think many of these firms did this? Obviously, they will like a 5x or 10x return. However, that is just the tip of the iceberg.

Consider Bitcoin as a mechanism for collateralization. What if that asset became the basis for tens of trillions of dollars in loans? How does that alter things?

Average people see a 10x while Wall Street institutions see a 100x, or more, through the collateralization of the asset class.

Of course, it is worthy to mention that we are just at the start of the innovation process. While we are seeing this on the development side, it also is going to take place on the financial side. We truly do not know what the potential of cryptocurrency is.

Do not be surprised if the numbers mentioned here jump a great deal as innovation brings out financial development that leads to even greater growth.

We are indeed at the very early stages of this process.


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Derivatives and many other financial instruments will be less expensive, easier to use, more transparent and mostly automated with the help of cryptocurrency and smart contracts. We can make much of these happen in a few years of the governments are willing to step back and let the developers make the established institutions obsolete.

That is all true. We also have massive advancements in the speed and capability of computation and our communication systems.

This will only open the door for much greater growth.

It will be huge.

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The scenario for blockchain technology and cryptocurrencies is very promising.

I wonder where we will be in 5 or 10 years from now. It will certainly be "insane", @taskmaster4450.

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the numbers you mention are really stratospheric and if these could magically move into the crypto market today who knows what numbers we will have. the migration will be progressive and the numbers I mentioned will grow even more.

Sometimes I tell myself I'm lucky to be able to observe all this from the beginning but above all to be part of it. We hope in a decade to be able to reap our fruits 😍

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It is progressive and will grow in time. Each passing year, the numbers do get bigger.

This year, $14 billion in DeFi monty staked; next year we might see 10x (or more) that.

Now we see purchases of BTC in the $100 million category.

I would expect we start to see similar numbers in ETH over time.

It will just keep growing.

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Saylor said he will not buy Ethereum at the moment because he says he doesn't see it mature yet.

It is likely that he can therefore concentrate on other cryptocurrencies but I am not sure how far his knowledge can go or if he is supported by people more experienced in the sector

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Grayscale is already loading up on it. Saylor, in the end, will be a bit player in this realm. Much bigger players on the way with a great deal more money.

Wait until the likes of Fidelity start to open their books.

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Large corporate climbing on-board came as no surprise, with the arrival a couple of years ago we witnessed what Futures did to market, overcoming many hurdles we have come a long way in a short space of time.

Added speed will be beneficial, I personally am looking forward to fibre optic lines in our region. Africa is nowhere near reaching goals set currently, perhaps cities will have 5G most are being weaned off ADSL3G or 4G, cellular not even reaching close to those speeds.

This is only the beginning, many up's and down's to look forward to. Past couple of years security has been featured and worked on plugging the holes, something to look forward to going forward.

@tipu curate

Damn.. those are some huge numbers.. but really once Wall St gets involved you know it's gonna be big

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100 percent upvote. Reblogged. Tweeted.

As I am just started reading your posts this last week I feel like smacking myself. Your thoughts, information and education I am getting is absolutely amazing.

Thanks.

Bradley

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Thanks for the vote of confidence Bradley.

I try to do my research and convey what is happening along with some general forecasting of trends and where things are going.

A lot is taking place.

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The potential for growth in crypto and blockchain is massively great. Each time I think about it, I become more grateful that I am here at this early stage. We would have many projects dying off but the few that survive will have the course of history forever altered. Thanks for reminding us of what the future holds.

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With all these, I wonder what the future of cryptocurrency holds for us.
I bet this could boost one's morale and increase our faith in whatever we choose to do with Crypto or about Crypto.

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This is going to foster more activity, much of which will be tied to blockchain. As more is done via mobile networks, cryptocurrency is the ideal payment system. 5G will add greater security, something that crypto depends upon. With the advanced wallets, people will be able to interact for less money.

And then, meanwhile, Quantum Computers will arrive in the scene to have to start the blockchain from scratch all over again precisely for security reasons. };)

Yeah well one of the first real world use cases will be for quantum to develop new encryption.

The challenge with the quantum race is any advancement is not done on real world computations but for ones designed specifically for the quantum computer.

There is much more at stake with quantum breaking encryption than just crypto.

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There is much more at stake with quantum breaking encryption than just crypto.

Nonetheless, now is the time to start thinking about quantum-resistant new blockchain protocols asap

.

There are people who are already thinking in that direction.

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Blockchain and cryptocurrency are going to change the world. It is a foregone conclusion. There will be a completely different data structure that is becomes the norm while innovation is going to happen on a massive scale.

I have the feelings like Internet on the 90's. Is clear that a big change is happening, and with mass adoption and user friendly improvements on next years we will see it. I'm happy to be one of the pioneers, for good or bad haha.

Nice article @taskmaster4450le

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Security is a big thing and what is holding crypto back to some extent right now. If they can get that right then there is nothing stopping it going to the dizzy heights we know it can. I always enjoy your articles as they are easy to understand.

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Maximalism is so dated now. There are so many varieties of crypto which aren't all tackling the same market as BTC. Arguably BTC could only handle digital gold and not cash. And yes settling FOREX wouldn't be done on BTC but another blockchain which rightly is 5x what BTC is going for.

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