Finance Blockchain Market Could Still Be Big But Scams Must Be Isolated

Finance Blockchain Market Could Still Be Big But Scams Must Be Isolated

Brian Wang |
February 12, 2019 |

The value of finance blockchain market reached $1.9 billion in 2017 but IHS Markit forecasts growth of 230 times over 13 years to reach $462 billion in 2030.

The financial industry is using blockchain for cross-border payments, share trading and syndicated lending. It is believed that the global financial market will expand the role of blockchain for insurance and new fintech applications.

The IHS Markit forecast is ignoring the current difficulties in the cryptocurrency and blockchain areas.

Decentralized Finance and Shorting Cryptocurrencies

A recent Dharma blog article shows the state of the cryptocurrency and blockchain market by detailing how to short Ethereum.

Dharma is a permissionless, generic protocol for issuing, underwriting, and administering debt agreements as tradeable cryptographic tokens. They came out of YCombinator. They are second in the decentralized finance market.

The most popular ways to shorting Ethereum based assets are Dharma Lever, dY/dX, and Compound.

Proposing to Separate Investments and Real Business Value from Scams

Jill Carson discussed creating different categories and terms for crypto in order to separate investments from scams.

Josh Harvey discussing getting alignment with terms and expectations.

1/ Traditional funding models are credit, investment and donation.

— Josh Harvey (@joshmh) January 12, 2019

2/ ICOs did not represent a new model; they were marketed as investment but generally functioned as donation.

— Josh Harvey (@joshmh) January 12, 2019

5/ Similar problem exists with other funding innovations, such as student loans in US. Lenders not incentivized to check loan viability because it is guaranteed by government. This leads to structural problems throughout the economy.

— Josh Harvey (@joshmh) January 12, 2019

6/ We need funding innovations that improve incentive alignment, while experimenting with credit, investment, and donations. A good example is the assurance contract aka crowdfunding

— Josh Harvey (@joshmh) January 12, 2019

SOURCES- Twitter, IHS Markit, Jill Carson, Dharma

Written By Brian Wang

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