By John Sarson | Sarson Funds, Inc.
The technology that has allowed Bitcoin to become the world’s most popular digital asset, Blockchain Technology, has seen its application explode across many industries, and not just as a banking alternative, which seems to be in focus at the moment. The ability to make digital assets all at once verifiable, transferable and secure has enormous potential application. Some technologists believe that the discovery of Blockchain Technology will one day prove to be on par with the invention of the internet when quantifying its contribution to humanity. The technology removes overhead for businesses. It allows secure transactions between individuals without them having to know or trust one another, or to rely on a trusted third party as an intermediary.
Everyone has heard of Bitcoin, but not everyone has heard of the exciting ways that the same technology that powers Bitcoin will power tomorrow’s technology companies. You don’t need to be a hacker or a hater of banks to use and benefit from this technology. One day in the not-too-distant future it will be used to facilitate many things that will make your life easier. It will allow your self-driving car to pay its parking meter. It will be the way that your hotel safely sends you your room key. It will even power the platform that sells your daughter her genuine Taylor Swift concert ticket, delivered safely to her iPhone. Bitcoin was the first killer application built on Blockchain Technology but it is far from the last. There are 100s of disruptive startup technology companies that have devised ways to use this technology to provide superior service at a lower costs.
Blockchain Technology itself was born from the cross collaboration of three branches of sciences: Computer Networking, Encryption and Game Theory with advancements in each field contributing a vital piece to the technology. The discovery makes humanities first quantum leap forward for record keeping since the Medici family introduced the still standard Double-Entry Accounting methods used today. That was 529 years ago. Blockchain Technology is a big deal and it is going to change the world in positive ways that are still being discovered.
And its usefulness is being discovered. The second largest cryptocurrency, Ethereum, is showing incredible adoption. Use of the Ethereum Network saw a year-over-year growth rate of 293% in 2022, and a quarter-over-quarter growth rate of 453% in the 4th quarter. Despite a few high-profile setbacks, the cryptocurrency industry continues to grow.
Germany, Portugal, Switzerland, South Korea, Singapore, Hong Kong and others are establishing themselves as global Blockchain hubs, each happy to welcome crypto startups from countries lacking clear crypto regulation. Those countries understand that a new technology is to be understood and leveraged, not feared. Even the United States, although current headlines would suggest otherwise, seems to understand the importance and permanence of this breakthrough.
According to our research at Sarson Funds, the development and usage of crypto-based technology solutions is continuing to accelerate worldwide. We estimate that new “web3 communities” (digital community groups built on Blockchain Technology) are being launched by companies like Starbucks, Sony, Macys, BMW, Disney, and others at a rate of more than 500 per day worldwide.
We don’t think it will be very long before Bitcoin and other cryptocurrencies see their prices rise to reflect the increasingly digital future of the world. We remain confident in our market call from earlier in January that we have seen the bottom for most crypto prices. We believe that the Microsoft, Facebook, and Googles of tomorrow will come from the ranks of today’s emerging Blockchain Technology leaders.
The thoughts expressed herein are the sole opinion of the author, John Sarson, who holds Bitcoin (BTC) and is not necessarily reflective of Sarson Funds or any other media outlets.
Please visit SarsonFunds.com/ESG to learn more about digital currencies and other ESG cryptocurrency projects.
