As cryptocurrency investors and fanatics, we are always looking for the next best investment opportunity. There are also many of us that rely on cryptocurrencies as a means to perform financial transactions and will be able to relate to some of the tech mentioned below. This is why we decided to look at the top three technologies that are worth keeping an eye on for the near future - if not for an investment opportunity, then to improve the way you transact online.
We chose these three technologies because companies involved in creating BaaS systems, stable coins, and all-in-one financial investment apps could change the way businesses and investors operate in the future.
If any of these three technologies take off, the ensuing trend will result in high demand which will, in turn, mean the companies involved in distributing these new blockchain technologies will see any stocks or cryptocurrencies attached to them dramatically rise in value.
This means if you happen to invest in one these ideas, be it via fiat currency or cryptocurrency investment, then your investment portfolio will reap the rewards of your foresight. Nothing is guaranteed, but we can at the very least keep our ears to ground and look for investment opportunities that make sense.
Stable coins are a cryptocurrency and are set to be at their highest demand by the end of 2019. Now when demand is high and supply is low, the only way is up!
Stable coins are predicted to rise in value, but just not at the alarming rates we saw cryptocurrencies rise in late 2017 – now this is only a small increase due to their popularity, but in essence, they are ties to commodities as well as fiat currencies.
Let’s explain this further, so you can understand why stable coins are becoming popular.
Most of us that are involved with investments in the cryptocurrency marketplace know that virtual currencies such as ETH and BTC are just the side product of overall blockchain technologies.
This is because a large number of blockchain technologies have a cryptocurrency attached to them which are essentially ICOs. An ICO raises funds so it can pay for its operations. Then, the value of its operations is dictated by the ICOs cryptocurrency’s market cap, which is then divided by the number of tokens (its cryptocurrency) to determine the value of each token.
This means that the success, both financially and in popularity, of an ICO’s ecosystem plays a heavy role in the valuation of the cryptocurrency attached to it. Consequently, this has meant, and it would be fair to say, that cryptocurrencies have become volatile, or unstable for want of a better word.
It is this instability that gave rise to stable coins such as Tether.
Stable coins remain unaffected by the overall cryptocurrency marketplace’s condition, and therefore investors are guaranteed stability to a certain extent.
Stability is provided because the stable coins are backed by commodities or more commonly by fiat currencies. If you look at FOREX markets or have every dabbled in FOREX, and compare the movement to cryptocurrencies, it is actually quite boring.
Yet, there are plenty of people out there that require the cross-border, low cost, and instant transaction capabilities that cryptocurrencies offer, but without the instability that cryptocurrencies such as ETH, BTC, and LTC have shown over the years.
Stable coins have become the perfect solution. That said, there are some disadvantages to stable coins that include the fact they run on centralized systems and can come with a certain element of trust issues because of their centralization model.
What Are the Current Stable Coin Options Available?
We already mentioned Tether as one Stable Coin. You also have TUSD, PAX, DAI, and USDC that all run on the Ethereum platform. There is also BITCNY in the Bitshares platform. For a complete overview, the best place to look is the Coincodex Stable Coin index.
This section follows on nicely from stable coins.
It is also worth noting that not all blockchain technology has a crypto token attached to it. Take for example IBM’s Food Trust app; a state-of-the-art blockchain ecosystem that has no cryptocurrencies attached to it.
Now if you wanted to invest in the future of Food Trust, then you would need to purchase shares in IBM on the stock market, and these shares are affected by IBM’s overall business activities – not just Food Trust or blockchain technologies. This because IBM used an IPO (similar to an ICO) to raise funds for its public shareholders in the business.
There are applications currently being produced that will automatically pull newsworthy articles and suggest public stocks to invest in based on a company’s blockchain technology activities. This gives those that have already had a taste of investing in cryptocurrencies the chance to expand their financial investment portfolio and move into public stocks and shares trading.
New platforms will follow developments in industries such as casinos both online and offline, sports betting, online gaming, as well as business sectors such as health and law where blockchain technologies are making the biggest impact.
At the same time as managing your public shares using fiat currencies and FOREX investments, the applications will also incorporate cryptocurrencies giving users a platform to deal in cryptocurrencies, stable coins, currency investments and fiat currency investments, track their movement, all in the same place, and pull up reports that show trends, profitability, as well as high and low performers.
These applications could have their own IBAN numbers, sort codes, bank account numbers, public and private keys, and logins to the interface. Effectively it is like having a crypto wallet, bank account, FOREX exchange, and public shares interface all in one place.
Add a VISA or MasterCard into the equation, and you can begin to see why these apps are going to take off. You will be able to plug them into your online casino account and play fiat currency and/or cryptocurrency online casino games.
It is predicted that more than 70% of medium to large-sized enterprises will adapt to blockchain technology over the next decade. Some of these businesses will have plans to create their own proprietary blockchain technology, which we have already seen this happening within the real money casino gaming industry.
However, it is not always possible for a business to create its own blockchain ecosystem/solution, let alone maintain and manage it. BaaS systems were designed for exactly this kind of scenario. It is a cloud service that gives business’s the building blocks they need to create their own blockchain solutions.
Quite a few tech businesses are already building their version of a blockchain-based cloud system that allows their customers to build their own blockchain operated solutions onto their platform.
As a result, businesses can use a BaaS system to create their own blockchain-powered products. For example, mobile or desktop apps and smart contracts are already built-in features saving tech companies the time and costs involved with creating their own smart contracts.
Which companies already provide BaaS?
No surprise here as Microsoft and Amazon have already hit the ground running. IBM is also in the running with a slightly more complex system in place and we can expect this IT giant to be one of the frontrunners when BaaS starts to increase in popularity.
If you like what have seen here, then we hope that we have assisted you in taking the next step in your investment career. Remember that there is never a guarantee any of these systems will hit mainstream businesses, but as you have read, they make sense. As investors, the best we can do is look at new technology that makes sense and then look for ways in which we can bet our money on that technology winning!
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