In today’s Money Morning…it’s been another weird and wild week for crypto markets…bitcoin may replace the dollar sooner than you think…a decade of blockchain disruption…and more…
It’s been another weird and wild week for crypto markets…
In Sweden for instance, the government has landed itself in an awkward position. Forced to repay roughly $2.2 million to a convicted drug dealer!
As for why, well, when the felon was convicted, he was stripped of 36 bitcoins. Currency that was only worth about $188,000 at the time. But by the time the feds auctioned it off, the value of bitcoin had grown exponentially. Meaning they only had to sell three of the 36 bitcoins in total to cover the $188,000 booked at the time of the man’s arrest.
This is because the courts mistakenly decided to account for the drug dealer’s profits in fiat, at the time of arrest. Because if they had simply documented the illicit goods as ‘36 bitcoins’, the government wouldn’t be out of pocket $2.2 million.
A valuable lesson for the Swedish judicial system, and a valuable lesson for anyone betting against the potential of Bitcoin [BTC]…
But these petty semantics and silly anecdotes aren’t what I’m here to talk about today.
No, the real takeaway for today’s article is that in a few years we may all be viewing bitcoin and cryptocurrency in a very different light.
Bitcoin may replace the dollar sooner than you think
As the speculation around bitcoin and the wider crypto market spurs to life again, the real rumblings are coming from the competition.
Late last week, Deloitte released its 2021 Global Blockchain Survey. An annual look at what some in the financial industry are seeing and thinking when it comes to this exciting new technology.
Effectively, 1,280 senior executives from a range of industries and nations are asked what they think about cryptos and blockchain. Gauging their response as an indicator for where adoption may sit, and how it may unfold in the future.
For instance, 80% of the respondents stated that digital assets will be very or somewhat important to their respective industry in the next 24 months. The clearest sign yet that business leaders believe that change is coming and coming fast.
On top of that, 81% said that blockchain is broadly scalable. Having achieved some semblance of mainstream adoption. While 73% believe that their company needs to adopt crypto or blockchain solutions to avoid losing their competitive advantage.
So it seems fairly irrefutable that crypto and blockchain aren’t some flash in the pan.
But perhaps the biggest surprise of all was the outlook from Financial Services Industry (FSI) respondents, a sector that Deloitte focused heavily on in this report, and for good reason…
Because of all the executives surveyed from an FSI background, 76% believe that cryptocurrency will be a strong alternative or replacement for fiat currencies within the next 5–10 years.
A finding that left Deloitte’s consultants to come to one simple conclusion:
‘The foundation of banking has been fundamentally outlived and financial services industry players must redefine themselves and find innovative ways to create economic growth in the future of money,’
In other words, the banks better get ready to adapt or die.
It’s just that simple.
A decade of blockchain disruption
Now, if you’re a regular reader at Money Morning, then none of this should really come as a surprise. Other than maybe the speed at which this change is happening.
After all, we’ve spent much of 2021 talking about the ‘new game’ for the global financial sector, highlighting how cryptocurrency and blockchain is steadily disrupting the traditional banking model.
All of which is just a prelude to the far more sweeping changes we’re likely to see.
Because right now, most people are simply focused on how bitcoin (or any crypto for that matter) could replace the entrenched monetary systems we currently have. The real opportunity and potential will be seeing what crypto and blockchain can do better than these current systems.
Benefits like faster transactions or transfers, lower costs, and increased privacy are just the beginning.
The real ingenuity and innovation will come from layer three solutions and beyond. Utilising and developing new decentralised apps (DApps) for a broader range of industries. Reaching far beyond just the simple scope of banking and finance.
That’s what makes it all so fascinating and exciting.
Not to mention lucrative for early adopters.
Which is precisely why we keep stressing the importance of these developments. Because even if you don’t quite ‘get’ bitcoin or the blockchain, you need to at least understand its disruptive potential.
The good news is that you still have time to get involved before things really take off. The bad news is that this window of opportunity is closing faster than many think.
And hey, even if you’re determined to avoid crypto and blockchain until it is physically impossible to do so, that’s fine. There are still more conventional ways to grow your wealth from this ‘seismic shift’, as Deloitte refers to it.
For instance, gold could be another big winner amidst all this tumultuous change. Particularly if fiat goes out with more of a bang — and not in a good way.
If your risk tolerance is a little higher and trading gold stocks sounds more up your alley, then by all means, get involved as much as you can.
And more importantly, you won’t want to miss Brian Chu’s one-hour masterclass on how to trade tiny gold miners. A free, one-time event that is happening tonight, at 7:00pm (AEST) sharp!
So whether you’re new to this market or an old hand, I’d suggest reserving a spot while you can. Which you can do by following this link.
Because no matter what your outlook on markets or the financial industry may be, change is coming. And it’s coming fast.
Bring it on, I say…
Editor, Money Morning
PS: Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks. For information on how to subscribe and see what Ryan’s telling subscribers right now, click here.