Royal Bank of Canada Research Analyst Determines the Blockchain Industry Helps the Market Immensely

A representative from the Royal Bank of Canada (RBC) has been researching the overall blockchain and cryptocurrency market and has come to some conclusions that could be startling. The analyst looked at aspects such as security, transparency, and more and realized that there is a significant value add to the market.

Exactly how much value? Well, the Royal Bank of Canada analyst sees that it would be around an expected ten trillion dollar ecosystem.

Is that a stretch in regards to the market of currency valuation? Not necessarily.

Steves History

Mitch Steves, the equities analyst who earlier noted earlier last year about the impact of the cryptocurrency market on the rise of Nvidia. He studied the aspects of Nvidia and set a price target of $175 per shares, due to the impact that the trend of mining cryptocurrencies like Ethereum was having on the company. Steves noted that the market for chips useful to Ethereum might be worth $875 million for Nvidia and other companies within that sector.

Earlier in 2017, Steves was studying the markets impacted by cryptocurrencies and saw that there was a rapid increase in the chip makers market. He studied the aspects of “hashes” in the process of mining and what a GPU unit could do. Overall, he was spot on in usage and the growth of the market.

Today

In a recently produced report, the analyst presented his hypothesis for the disruption of transactional services. He continued to speak on the aspects of decentralization and how that transforms the market presently and in the future.

“While the cryptocurrency space has many risks, the opportunity appears vast with constant technology updates,” Steves noted.

It seems at that we are merely at the tip of the iceberg, the market is present with players who are implementing protocols for the cryptocurrency realm so that they may be utilized in a decentralized manner. The examples that we’ve seen are the sending of money overseas, such as, the occurrence for many of the Philippines exchanges. There are much more significant use cases that are yet to be unlocked.

The argument made by the analyst is that a significant amount of the value will be present in the protocol layer, many of services aren’t going to rest on top of this layer, so there must be significant value present there.

He elaborated on the fact that the protocol layer will be able to notice considerable value, even more so than the applications that are built on top of it, which is startling.

He commented on the correlation of the progress and growth of the applications with that of the protocol layer. The higher the growth of the applications that are built on top of it, the larger the capturing of value by the protocol layer. As the initial applications receive success, the more other applications are drawn to the protocol layer, adding for increased interest and further creation of decentralized applications.

Furthermore, the analyst also discussed more about the market of mining and stated that this would stay and continue to grow. Also, there are far more innovations coming to the market, like the Lightning Network and much more, these innovations will allow for further growth of the market.

Improvements like the Lightning network are not just an additional feature but a necessity to handle scaling, an issue that pesters Bitcoin and Ethereum.

By | 2018-01-05T00:28:06+00:00 January 4th, 2018|Cryptocurrency News|0 Comments

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