In the decade since its invention, blockchain has already started redefining the world as we know it. But as mega-corporations invest heavily into blockchain and people raise their stake in bitcoin, we still don’t understand how much the nascent but revolutionary tech that is blockchain will be worth. While other analysts separate blockchain and bitcoin, we believe they have a shared future. By our calculations, cryptocurrency and blockchain will be worth over $700 billion by 2021.
Blockchain Technology Will Pervade All Industries
Today, every business has to have a website. In the near future, blockchain could become just as essential to doing business as the internet itself.
Blockchain will be worth billions as it offers a fast and secure way to store transactions and information. It’s more secure than traditional data storage solutions because it’s decentralized, meaning that it doesn’t exist on one single server that could be hacked. This also means that one individual or company cannot have complete control over it. Instead, everyone can access and contribute to it simultaneously.
Once you enter something into the blockchain—for instance, if you buy something using cryptocurrency—that transaction cannot be altered or deleted. Though, this doesn’t mean that every interaction you have becomes public information. Blockchains vary depending on their purpose. They can be public, as is the case with a cryptocurrency, or exist privately within a company or network.
Not only is blockchain a better data storing solution than a cloud storage or server, but it’s also cheaper. Plus, you no longer have to trust a third party with your data. In fact, many third parties may become obsolete as blockchain solutions grow.
Take the example of Maersk, the international shipping company. Maersk is saving one-fifth on the cost of goods by adopting IBM’s blockchain platform according to their own calculations.
This is only the beginning. Blockchain tech is being integrated into rideshare services, the music industry, banking, energy, and countless other sectors. There isn’t an industry out there that can’t benefit from the safest, quickest and most reliable transactions in history.
Cryptocurrency’s Value: Beyond the Money
Blockchain is the peer-to-peer network on which cryptocurrency is traded. First and foremost, cryptocurrency is a decentralized currency, meaning that it operates independently from governments and banks, for example. The value of cryptocurrency is based on supply and demand. This is because there is a finite amount of each cryptocurrency. For instance, there are only 21 million bitcoins in existence.
For this reason, some people liken crypto to gold. Though cryptocurrency coins can be finite, you can create an infinite number of cryptocurrencies, for infinite purposes. Some people think of crypto as an investment, similar to a stock. Though a currency that you can use safely around the world without incurring credit card, wire transfer, or other hefty fees is extremely valuable, cryptocurrency offers much more than the dollar, the euro, or the yen.
This is because many companies use cryptocurrency to trade things other than ‘money.’ There is a rideshare company that gives its drivers their own currency, which you can cash out to USD or keep in the company, as a sort of stock or payment for services. Energy companies allow you to trade energy through cryptocurrency. Multiple ways to use cryptocurrency that go beyond dollars and cents keep popping up. Blockchain will be worth billions in large part because of the versatility of cryptocurrency.
For all these reasons, the number of cryptocurrencies and the market capitalization for cryptocurrency keep going up. The graph above assumes that cryptocurrency’s market cap will increase by a conservative 80% annually, as predicted by Blocklr. Historically, cryptocurrency has grown much more rapidly. Between August 2017 and August 2018, the market cap increased by 199%. The previous year saw 673% growth.
Blockchain Will be Worth $728 Billion by 2021
Predictions regarding how much blockchain will be worth typically range between the low millions, which we’ve already surpassed, to the low billions. Most do not include cryptocurrency. Of course, crypto and blockchain are far from the same thing. But blockchain came into existence because of cryptocurrency, therefore one’s growth remains contingent upon the others.
Blockchain will be worth over $700 billion by 2021 because its value includes both blockchain technology and cryptocurrency. Some might say that blockchain is an industry while cryptocurrency is, well, a currency. But, as mentioned above, crypto isn’t like the USD. It can be a stock, energy, services and anything in between. It’s also a tool most businesses use on blockchain. Not only is cryptocurrency part of blockchain as a whole, but interest in cryptocurrency is the reason why blockchain has experienced such astronomical growth in the first place.