In the past 6 months, cryptocurrency and the tech that surrounds it has been being adopted at a parabolic rate. Many issues revolving around the current infrastructure of the internet dealing with personal data being exposed to hackers globally, cloud computing storage being manipulated and precious data being lost and of course over-seas money transfers to people who need it taking days and costing a fortune, the dawn of blockchain is among us. This article will take a deep dive into why companies are looking to cryptocurrency and blockchain to increase their companies stability.
At Grayscale Investments, they believe investors deserve an established, trusted, and accountable partner that can help them navigate the gray areas of digital currency investing. That’s why they are building transparent, familiar investment products that facilitate access to this burgeoning asset class, and provide the springboard to invest in the new digital currency-powered “internet of money.” They decided to take blockchain adoption into their own hands and make it accessible to any big wall street honcho diversify their portfolio through ETF’s through their company.
The Grayscale Bitcoin Trust launched its TV advert in August and was quickly followed by an unhappy Crypto Twitter community, with the advert showing “technical flaws and an ambiguous message”, with Decrypt explaining crypto enthusiasts were not impressed.
Still, though, the advert certainly did its job with Grayscale bringing in $217 million within a week of the ad launch. The Grayscale Bitcoin Trust GBTC currently holds 2% of the circulating supply of Bitcoin, with estimates to be at 3% by 2021. These percentages do not take into account lost coins. In addition, GBTC has since created the Grayscale Ethereum Trust (ETHE), with plans to set up and create all ten of its cryptocurrency investment vehicles into “publicly traded assets, then turn each of those into SEC reporting companies” according to Grayscale Managing Director Michael Sonnenshein in an interview with Forbes.
Fidelity Digital Assets
Fidelity Digital Assests envisions a future where all types of assets are issued natively on blockchains or represented in tokenized format. It all begins with a full-service, enterprise-grade platform for securing, trading, and supporting investments in digital assets. They offer custody products, great institutional grade security, and a service team available to answer questions od high networth investors within the space.
A further breakdown of results shows that 74% of U.S institutional investors find cryptocurrency appealing, on the other hand, 82% of European investors do. Interestingly, 25% of European institutional investors find the reason that certain digital assets are “free from government intervention” to be the reason for the appeal, whereas this number is 10% for U.S participants. An encouraging average of 36% (27% in the U.S. and 45% in Europe) of those who completed the survey are already invested in cryptocurrency, with only a shy 11% invested in Ethereum.
Key mentions for not being in the crypto space were ‘price volatility’ as the main reason- 53% of respondents chose this answer, with “lack of fundamentals to gauge appropriate value.” being voted for by 45% of investors.
In 2020, Microsoft announced creating a patented design for a “cryptocurrency system using body activity data” with the World Intellectual Property Organization (WIPO). In short, Microsoft aims to accelerate the cryptocurrency mining ecosystem, by using users’ own body heat as proof-of-work, and users can earn/mine crypto by carrying out certain tasks online i.e. browsing, shopping, gaming, etc.
Microsoft has long been embracing blockchain, building a decentralized online personal identification application, on top of the Bitcoin blockchain since early 2019. The beta launch for the decentralized identification network was released in June this year. Microsoft contiunes to make partnerships globally with its new projects involving blockchain.
PayPal is another company that has changed its tune on its public view of Bitcoin and cryptocurrencies. Earlier in the Summer, PayPal announced developments for cryptocurrency capabilities on its platform and plans to offer sales of cryptocurrencies to their 325 million users. In recent days, PayPal has announced integrations with crypto exchange bitFlyer allowing users to deposit funds and purchase crypto in a few clicks with their PayPal account.
Meanwhile, fintech apps that offer crypto are making money. Square, the payments unicorn launched by Twitter CEO Jack Dorsey, rolled out bitcoin purchases in its Cash App in mid-2018. Cash App reported $306 million in bitcoin revenue in its most recent earnings report. And people say crypto is considered a scam…. OOFFFTTAA!!
Visa quoted its founder Dee Hock, who gave a speech in 1996 explaining why he created Visa, using the same rationale to justify the company’s pivot toward cryptocurrencies.
“Money is nothing but alphanumeric data and it would become alphanumeric data not in paper form, but in a form of arranged electrons and photons,” Hock told the Extension National Leadership Conference over 20 years ago. “And they would move around the world at the speed of light by infinitely diverse paths through the entire electromagnetic spectrum.” Visa, pointing to its work with bitcoin and crypto exchange Coinbase and bitcoin rewards app Fold, said it wants to “provide a bridge between digital currencies and our existing global network of 61 million merchants.”
Meanwhile, Mastercard has this week said it’s extending its cryptocurrency program to make it easier for companies in the space to issue their own payment cards, signing a deal with London-based Wirex, making it the first “native” cryptocurrency platform to gain principal membership and allowing Wirex to directly issue cards on Mastercard’s network.
“The cryptocurrency market continues to mature, and Mastercard is driving it forward, creating safe and secure experiences for consumers and businesses in today’s digital economy,” Raj Dhamodharan, Mastercard’s executive vice president for digital asset and blockchain products and partnerships, said in a statement. Forbes gives a great review on this.
In conclusion, the space is growing…