By Alessandro Albano and Francesco Casarella
Investing.com – "Over the next 10 years, the crypto market will continue to experience alternating bull/bear market cycles, but investor adoption of digital currencies will continue to increase." So said Charles Hoskinson, founder or co-founder of blockchain platforms Cardano and Ethereum, in an interview he gave to Investing.com this week during the Web Summit 2022 in Lisbon.
By 2025 there will be more than 1 billion people who have dealt with crypto in their lifetime, a number that Hoskinson says could increase to "2 billion by 2030."
And yet, from its peak in November 2021 to the present, the market capitalization of non-fiat currencies has shrunk dramatically, from more than $3 billion to the current $1 billion.
But with the arrival of NFTs, the adoption of Bitcoin as legal tender by El Salvador, and the increased use of blockchain by corporations, crypto has taken more than financial value, a feature not seen in the past decade.
"In the last bull market of 2021, we realized that crypto is no longer just a speculative financial instrument, but also has reach outside the financial world," the founder of the two blockchains explains.
The decentralization of finance and the digital banking revolution will also contribute, "enormously in the adoption of digital currencies," as will the use by cyber security companies and the digitization of bureaucratic processes, according to Hoskinson.
More complex, however, is the discourse related to ESG issues and the energy waste used to mine cryptocurrencies. After the Ethereum Merge, considered one of the most significant upgrades ever introduced to the crypto ecosystem, the Ethereum blockchain reduced network energy consumption by 99.9 percent in migrating from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism.
For Hoskinson, however, cryptos cannot solve climate change, a task instead to do "with cooperation between nation-states," but can play an important role in helping emerging economies accelerate their development.
"Blockchain can help emerging and undeveloped economies accelerate their domestic development processes, which instead are now bound by international constraints and subject to the so-called world order."
Cardano's founder claims that El Salvador offers an example of how, through the creation of new protocols, states can create new forms of digital partnerships that go beyond traditional systems and rely instead on new digital infrastructure.
In more financial terms, however, Hoskinson sees cryptocurrencies as another asset class to round out a balanced portfolio, although recent volatility has blown away the previously established inverse relationship between cryptocurrency and stock performance.
"Crypto is the first meta asset, but the question for investors is how they want the assets in their portfolio to be represented. All assets have intrinsic value but are asymmetrically liquid."
"But," the founder of the world's top two blockchains asks in conclusion, "what if all financial instruments, even those not traded, had their own form of liquid representation in international financial markets equivalent to their real value?"
Related Articles
Ethereum and Cardano Co-Founder: Crypto Has Extended Its Reach Beyond Finance
Will November 2022 Be a Good Month for Low Cap Cryptos?
Fidelity Opens Wait List With Zero Fee for Retail Crypto Trading
Zhi Wei Feng, senior credit analyst at Loomis Sayles, discusses China's property market, junk-rated companies and her outlook for the sector. She speaks on Bloomberg Television.
DPS Cyber Security creates new policies to help its clients retrieve their digital assets.
The crypto industry finds itself steadily bouncing back from a series of catastrophic dips that have seen the likes of Bitcoin and Ethereum devalue by as much as 80% in the last year.
The NFT marketplace will airdrop exclusive art to 250 holders of the subscription-like passes over the course of a year.
The cryptocurrency market is renowned for its volatility. However, several crypto analysts believe it is nearing the end of its bearish trend.
THE ADVICER MarketWatch Picks has highlighted these products and services because we think readers will find them useful; the MarketWatch News staff is not involved in creating this content. Links in this content may result in us earning a commission, but our recommendations are independent of any compensation that we may receive.
Yahoo Finance Live anchors discuss third-quarter earnings for Twilio.
More hikes are likely coming. Can your portfolio handle it?
Yahoo Finance’s Pras Subramanian breaks down Carvana earnings.
Shares in copper miner Freeport-McMoRan (NYSE: FCX) were up by around 10% midday today. The move today comes as the mining stock's bulls got to hear exactly what they wanted from China. According to a Reuters article, official sources are declaring that China will make "substantial changes" to zero-COVID policies in due course.
In this article, we discuss the 15 best high volume penny stocks to buy now. If you want to read about some more high volume penny stocks, go directly to 5 Best High Volume Penny Stocks to Buy Now. Penny stocks had become an important indicator of the overall health of the stock market in […]
When Lumen Technologies (NYSE: LUMN) closed its two asset sales and appointed a new CEO over the past couple of months, it seemed highly probable that the company would cut its dividend. Is this a sign of Lumen's impending demise, or can the business be turned around? With a new CEO and a better balance sheet thanks to recent asset sales, Lumen could be an interesting stock for deep-value investors, as dividend seekers sell off their shares.
Shopify (NYSE: SHOP) stock has taken investors on a tumultuous ride over the last couple of years. Shopify stock has lost roughly three-quarters of its value so far in 2022 and is down 80% from the all-time high that it hit last November. Should investors treat the big valuation pullback as a buying opportunity, or is there still too much downside risk to make the stock a smart buy at current prices?
Recently, Zacks.com users have been paying close attention to CrowdStrike (CRWD). This makes it worthwhile to examine what the stock has in store.
Instead, their stocks retreated because their valuations got overheated during the buying frenzy in growth stocks in 2020 and 2021. Tenable's Nessus platform aims to prevent cyberattacks by scanning networks for security threats like weak passwords, misconfigured software, and other problems. Tenable went public four years ago.
The Canadian dollar strengthened by the most in nearly three years against its U.S. counterpart on Friday as domestic data showed a surge in hiring, bolstering bets for another larger than normal interest rate hike by the Bank of Canada next month. The Canadian economy added 108,300 jobs in October, easily beating forecasts for 10,000 new jobs, with the blowout gain entirely in full-time work. Money markets see a 67% chance that the Bank of Canada would raise its benchmark interest rate by half a percentage point at its next policy announcement on Dec. 7, up from about 50% before the data.
In the latest trading session, Novavax (NVAX) closed at $20.17, marking a -1.61% move from the previous day.
Carvana (NYSE: CVNA) investors were heading for the hills today after the online car marketplace reported worse-than-expected third-quarter results. Carvana's non-GAAP (adjusted) loss per share of $2.67 was a massive decrease from the company's loss of $0.38 in the year-ago quarter. Carvana's total revenue of $3.39 billion in the quarter missed Wall Street's expectation of $3.7 billion and was down 3% from the year-ago quarter.
With $1.5 billion at stake in the Powerball jackpot, what’s the best financial move for all that money if you win?
Shares of Exact Sciences (NASDAQ: EXAS) were soaring 17.3% higher as of 11 a.m. ET on Friday. Exact Sciences reported Q3 revenue of $523.1 million, up 15% year over year. In addition, Exact Sciences raised its full-year revenue guidance.
Author
Administraroot
