In 15 Years, Cryptocurrency and Blockchain Tech Market Could Reach $10 Trillion, According to RBC.
The Royal Bank of Canada (RBC) Capital Markets financial analyst, named Mitch Steves, in one report which has been published on January 3rd, 2018, confidently states that the cryptocurrencies and blockchain technology applications market could increase thirteen-fold in 15 years, reaching about $10 trillion.
This report has been titled “Cryptocurrency and Blockchain Technology: A Decentralized Future — A Potential Multi-Trillion Dollar Opportunity,” and it has been sent to the clients of RBC. Also, a summary of it has been shared on Twitter.
Steves, who usually covers high technology stocks including Nvidia, whose value has been boosted by cryptocurrency mining, in one video which was published in CNBC, defends the bullish expectations he had on blockchain technology and the applications it has.
According to him, cryptocurrencies represent just a small part of the $10 trillion pie, the bulk of which is at the base of the ecosystem that exists around blockchain technology and cryptocurrencies.
“I think that what people misunderstand about the space of cryptocurrency is that it is not just a store of value, but that it also allows us to secure the internet.”
Blockchain-based cryptocurrencies will permit creating decentralized versions of value storage services, such as Dropbox or iCloud.
The $10 trillion figure also represents one-third of the current size of the market for value storage.
He also argues that the technology of blockchain is also going to allow creating a “Secure World Computer.”
It is a decentralized world computer without a third – party intermediary intrinsically more secure, as there will not be centralized servers which can be hacked, and suggests that next – generation killer apps are going to be created on top of this secure layer.
According to Steves, the smart move for investors is to actually get involved with cryptocurrencies directly.
As far as traditional stocks are concerned, Steves mentions public companies such as AMS and Nvidia, whose chips power cryptocurrency mining hardware, and the private companies which make ASIC chips for bitcoin mining.
At the same time, he warns that those that are likely to be the most affected by the technology of blockchain with negative results are cloud service providers if they do not manage to adapt.
He also states that the value of the blockchain technology market is also growing, as a result of the international remittances – the sending of payments overseas is currently estimated a half a trillion dollars every year – “fat protocol” layers which can increase in value as the applications grow.
Throughput scaling efforts, like the Lightning Network, which actually “appears on track, to deliver scaling that accommodations higher transactions/second, ultimately driving higher utility and network value.”
Steves warns that the cryptocurrency space is exposed to risks, and he also argues that that opportunity appears some vast, with constant technology updates, and a multi-trillion dollar market is likely to emerge.
Recently, there was one related article, published by the RBC, and the managing director and head of investment strategy for RBC Wealth Management in the British Isles, named Frédérique Carrier, argued that, even though cryptocurrencies are unlikely to replace the traditional money, the technology of blockchain could have wide-ranging implications in a lot of industries and for investors in the medium – to – long-term.
Carrier notes that the potential of the technology of blockchain “makes it a technology which is well – worth watching closely, which we intend to do,” adding that RBC is experimenting with blockchain technology in its personnel, as well as commercial and capital markets businesses.
RBC recently announced the implementation of a blockchain – based shadow ledger for cross-border payments between Canada and the U.S.