Note: this is the first in a series of light-hearted editorial pieces called 'Moon Shots and Shark Jumps', focusing on Web3, blockchain, real estate and more. The regular Black Tie Digital blog will continue as normal.
Ah, blockchain. The technology that promised to revolutionize industries, disrupt traditional systems, and make us all rich with cryptocurrencies. And yet, for many of us, it still feels like a mysterious and intimidating concept. Fear not, for I am here to predict where the blockchain industry is headed over the next five years. And trust me, it's going to be a wild ride.
First off, let's talk about tokenization. No, I don't mean the act of turning everything into a token of appreciation. I'm talking about the tokenization of real-world assets. Think real estate, art, and even commodities like gold. In the next five years, we're going to see more and more of these assets being represented by tokens on the blockchain. Why? Because it makes them more accessible and tradable, of course! Plus, who wouldn't want a piece of the Mona Lisa, even if it's just a tiny fraction? Personally, I quite like what Chronoly is doing with fractionalised investment into high-end watches. Hey, there's this year's Christmas presents sorted - look Dad, I got you 2% of a Rolex!
*note - in the few hours since publishing, I have checked up on Chronoly for the first time in a while... the team pulled the liquidity for their CRNO token over the last fortnight, with a promise to airdrop holders a new token (Watchvestor). Guess time will tell if this is just another rug pull or not, but it's not a great look... I suppose we'll have to "watch" this space (geddit?). Ah, the endless rollercoaster of Web3...
But wait, there's more! As blockchain technology becomes more integrated into our financial systems, we're going to see a convergence with securities regulations. Exciting stuff, I know. This means that blockchain-based securities may become subject to the same rules and regulations as traditional securities. Don't worry, though, I'm sure this won't lead to any bureaucratic nightmares or endless red tape. Nope, not at all. What, you disagree - just because Gary Gensler can't decide if ETH is a security or not?
I can also hear the skeptics among you saying, "But what about the environmental impact of all this blockchain activity?" Fear not, for I have a prediction for that as well. In the next five years, we're going to see a surge in eco-friendly blockchain solutions. From carbon-neutral mining operations to energy-efficient consensus algorithms, the blockchain industry is going to take sustainability seriously. No jokes here, folks - it's a serious topic and it's great to see some local projects taking the reins in the quest for change.
But let's be real here. No prediction about the blockchain industry is complete without mentioning everyone's favorite buzzword: DeFi. Decentralized Finance has been the talk of the town for a while now, and it's not going away anytime soon. In the next five years, we're going to see even more DeFi projects popping up, promising to revolutionize how we bank, invest, and borrow. Of course, if decentralised and semi-anonymous protocols are too high-risk for you, you could always stick with using Silicon Valley Bank - uh, I mean Signature Bank - wait, I mean Credit Suisse - hold on, I meant to say First Republic...
Of course, with all this talk of DeFi and tokenization, we can't forget about the OG of the blockchain world: Bitcoin. Don't worry, Bitcoin maximalists, I haven't forgotten about you. In the next five years, we're going to see Bitcoin continue to cement its status as a store of value, with more and more institutional investors and corporations jumping on the bandwagon. Or - hedging bets a little here - we'll see BTC lose 95% or more of its value as investors, speculators and assorted technologists move towards protocols with higher levels of usability, integration and accessibility. Yep... it'll be one of those two outcomes, I reckon 🤷♂️.
So there you have it, my predictions for where the blockchain industry is headed over the next five years. Tokenization, securities regulations, eco-friendliness, DeFi, and good old Bitcoin. It's going to be a wild ride, full of ups and downs, bull markets and bear markets. But hey, at least we'll have some good memes to keep us entertained along the way.
In all seriousness, though, the blockchain industry has the potential to revolutionize how we interact with each other and our financial systems. It's up to all of us to make sure we use this technology for good, and not just for our own personal gain. So let's buckle up, stay informed, and enjoy the ride.