This is a guest post by Chris Crown about crypto’s road to a trillion dollars. Enjoy!
2017 was year zero for the crypto world. Going from a 17 to a 650 billion market cap in the space of 12 months, it made the world stop and ask:
‘wah bitcoin, apa ini sia?’
Well, it made my elderly neighbours say that anyway.
2017 was also the year Ethereum, which started off at $10 and going to a valuation of $700 USD on Dec 31st. By the way, ethereum has a valuation of $1200USD today, the Jan 12th 2018. Ethereum also introduced us to the idea of smart contracts and a way to conduct transactions more complex than a means of exchanging value.
Ethereum is also directly responsible for an avalanche of Initial Coin Offerings (ICO), which are a new way to raise capital and invest on the ground floor of a crypto project.
ICOs took off in the summer and hundreds of billions of dollars was invested from projects around artificial intelligence, medical record imaging, decentralising the internet to crypto-kitties.
And the wave continues –as we speak, ‘Tron-dogs,’ are being rolled out on the Tron blockchain–
‘Wah crypto-anjing haram atau tak?’
A KODAK Moment
Kodak is launching Kodak Coin, their blockchain project which seeks to assist photographers in maintaining their copyright security in an age of information overload.
It’s a good concept that plays to the strengths of blockchain technology and it just might work. Come January 31st, Kodak Coin will be up for ICO and will be the first large scale multi-national consumer facing company to conduct an ICO.
News of its blockchain initiative shot the shares of the company up 30%+ percent. The wider trading world run by suits in their 50s are mystified by wtf a blockchain is; all they know is that it minted crazy money in 2017.
Case in point, an Ice Team manufacturer rebranded itself from Long Island Iced Tea Corp to Long Blockchain Corp and saw shares TRIPLE in a day in mid-Dec. It is still double the valuation today in early Jan. Still sells ice tea. Maybe it tastes better after being recorded on a distributed ledger, idk.
The Suits Are Here
And so Kodak’s project will be watched closely by other major multinationals to see exactly how they do.
This seems to be a novel way to earn money – ask the customer to give you money in return for a bit of coded software that may or may not do what you said it would do.
No matter how shit your product is, you’ll have a hardcore group of supporters who will shout down any criticisms of your coin as ‘FUD,’ with warcries of HODL calling critics imaginative things like fuck knuckles and monkey tossers.
I’m looking at you, Electroneum.
Zuckerberg made a curious status saying he would be ‘studying’ blockchain technology to see how it can be integrated into the Facebook machine. Regular crypto heads know already the utility of the Steem token and how it rewards likes with cold-hard crypto which can be effectively exchanged for cash.
Imagine if you really could monetize Facebook likes for cash. Suddenly ‘liking’ a post on a third world kid’s photo might actually send that kid actual scrilla. I’ll give a few more thumbs up, that’s for sure.
And bam, another billion dollars of valuation for Team FB. Maybe even a Nobel Peace prize for actually being able to save lives through sending a like?
If Kodak pulls off a successful ICO, 2018 will see a slew of large multinationals enter the crypto space launching ICOs, buying smaller blockchain projects, head hunting the best developers and coders.
It’s going to be fucking great.
Road to a Trillion Dollars
It’s not so much a question of “if” the crypto world will hit a trillion dollar evaluation, it’s more a question of ‘when’ and for the most bullish of us ‘how many’ trillions.
The bulk of the crypto valuation skyrocket took place in the final quarter of 2017 from $142 billion Oct 1 to the $650 billion range 90 days later.
Multinationals aren’t as agile as small start-ups like the bulk of ICOs are. But when they move, they move with deeper pockets of cash than most start-ups could dream of. Pivoting in one quarter is too much. But give them six to nine months and they will Godzilla their way in.
The Trillion Dollar market cap will feature the presence of large, established ‘old money’ firms bumbling their way through the crypto space.
Kodak is the first. They got done hard missing out on the digital camera boom of the 90s – even though they about INVENTED digital cameras – and almost went insolvent. They won’t make the same mistake in the 2020s.
What you should do
Keep an eye on how the Kodak blockchain project goes. If it sells out in a day, you can be sure that old money firms will be launching their own coins by quarter three. If it tanks, maybe we’ll see a more cautious approach by old money and a slower run to the Trillionaire Club.
Anywhoots, I’m going to be with my neighbour on CMC checking out the price action on Kodak as it comes onto exchanges sometime in Q1.
‘Eh, ini Kodak coin boleh pergi bulan sia?’
‘Mungkin pergi, Pak, mungkin pergi.’
Chris Crown is a moderator on the Cryptocurrency Singapore Facebook Group. His current life status is somewhere between a fertilised egg and a chalk outline outside a kopitiam in Yishun. His biggest life regret will always be not buying bitcoin back in 2011 when he first read about it.