Brian Armstrong, founder and CEO of Coinbase, the largest bitcoin exchange in the United States, wrote in a note that Kevin Bess’s blogPredicts the future of China’s digital currencies and blockchain technology by the end of the 2020s.
In the following, you will read Armstrong’s fascinating article and predictions for the next 10 years.
Bitcoin exchange,, no one can predict the future with high accuracy. But the best way to predict the future is to build it. According to Armstrong, in the next decade, we will see a Chinese blockchain that is both more scalable (with cheaper and faster transactions) and has more privacy for its users.
The technology will increase from 50 million users at the beginning of the decade to one billion users at the end of the decade.Digital currenciesWill be widely accepted in two areas; In emerging markets (developing countries) where traditional financial systems will fail, as well as in digital currency-based startups that will produce the products people need.
By the end of this decade, many startup technologies will have a digital currency segment, just like today when all startups use the Internet andmachine learningThey are dealing. In the next ten years, various governments and institutions will enter the field of digital currencies widely.
Continue to examine the effects in detail China Blockchain Technology And we will pay for digital currencies around the world in the next 10 years:
The 2020s saw the second generation of solutions for Scalability problemThere will be blockchains that will increase the throughput and speed of transactions many times over. Just like the bandwidth that replaced the 56K dial-up modems and expanded the use of the Internet in various fields such as YouTube, Uber
According to CEO Kevin Bass, improving scalability is a key prerequisite for the implementation of digital currencies in the real world. As scalability improves several times, we will see the rapid development of its applications.
In addition to scalability, privacy development will be a major development in the next decade. Just like the Internet, which was originally based on the HTTP protocol, but now most sites are HTTPS-based by default, we will see that privacy-oriented coins and blockchains will be accepted in the next decade. In most cases, it does not make sense to make every payment and receipt in a completely transparent manner.
Many powerful teams are currently working on new generation protocols (Kazmazas, Definiti, Polkadot, Atrium 2,Algrand and…) and other teams are working to improve the scalability of existing china blocks.
The author predicts that in the next decade we will see the development of the Chinese block in the field of developers, user base and market size.
Blockchains that focus on scalability, privacy, and developer tools will thrive. We will probably see the integration of big development teams in the next decade. Reverse forks in which two chains (blockchain) become one chain and each token merges with the other token to have a fixed exchange rate.
According to Armstrong, we will have as many coins (millions of digital currencies) as companies, charities, open source projects and DAOs. But only a handful of blockchains will provide the infrastructure for these coins. Like any other industry, the winning blocs are likely to adhere to the law of distribution of power.
4- From speculation to application
The 2010s were mainly about trading and investing in digital currencies. Sub-exchanges of digital currencies led most of the activities and business models.
Armstrong believes that companies that will be established in the digital currency space will be leaders in the application of digital currencies, which means that ordinary people will use these currencies not for trading in an exchange, but for real applications.
We are already witnessing the beginning of this trend and digital currencies are used in cases other than trading, such as equity, lending, margin, debit cards, monetization, trading, and so on.
5- The emergence of startups on the basis of digital currencies
This decade will see the spread of a new type of startup; Startups based on digital currencies. Exactly asDotcom Madness The idea for startups was born, and a decade later almost all startup technologies used the Internet in some way, and by the end of the 2020s, all startup technologies will have a digital currency portion.
But what are the characteristics of a digital currency startup?
First, these startups will use digital currencies to invest. This means that fundraising will not be limited to one country, and developers can invest from all over the world. It will also prevent capital from flowing into venture capital investments.
Second, these startups will use digital currencies and issue tokens to deliver products tailored to market needs to the first recipients of these products. And in this way, these people will be the leaders in the field of products provided. Just like the initial employees of a company in which the company becomes a shareholder.
Third, they will bring together global markets and communities at a rate that no startup has been able to do before. To be able to do this, startups must spread from country to country around the world, adapting payment methods and the rules and regulations of all countries to their own methods.
There are still many unanswered questions about digital currency legislation, but the benefits of digital currencies are so great that the market will eventually find a way to answer them.
These startups will face a challenge that every startup has faced; Build what people need. The reason why the next 100 million people enter the field of digital currencies is not because they care about this field. They will enter the field to use decentralized social networks, earn money or play video games. And the only way to use these applications is to use digital currencies.
6- Emerging markets
Apart from startups, another major area where digital currencies will be accepted is emerging markets. In traditional financial systems, weak countries can do nothing. Digital currencies can be unique in this regard, especially in countries with high inflation and cash flow.
In 2019, the cryptocurrency website (founded by Armstrong, author of this article) paid digital currency to 5,000 people in Venezuela, and 90% of those people bought the digital currency from a local store at least once. This shows that the tools needed to use digital currencies in emerging markets are available.
Of course, using this feature in countries like Venezuela will be challenging, including; Unreliable internet, old smartphones and lack of training. The 2020s will see hundreds of millions of people in emerging markets use digital currencies, with at least one country leading the way. In such a way that almost all economic exchanges in that country will be done through digital currencies.
We are already witnessing the presence of small institutions in the field of digital currencies. Hundreds of institutions have used CoinBase’s trust services in the last 18 months. This rapid growth is expected to continue in 2020 and larger institutions will use these services.
Finally, all financial institutions will have some form of digital currency operation and will retain some of their assets in digital currency. Institutions account for about 90% of the world’s capital, which means a sharp increase in demand for digital currencies.
8- National digital currencies
while Libra In Washington, it has angered almost all policymakers, with China taking the initiative as it begins to digitize the yuan and focus investments on China’s blockchain technology.
The United States is currently competing with China, and there has been active debate over how to digitize the dollar. The US solution to this problem may be the USD Coin.
This is a KevinStable digital currencyIs offered by CENTER; a coalition between Quinbis and Circle. Or the Federal Reserve may launch its digitized dollar on the Chinese blockchain platform.
Armstrong believes that after that we will see a basket of centralized digital currencies that will be offered either by a coalition like Libra and CENTER or even by the International Monetary Fund.
9- Evolution of market structure
In the last decade, many of the companies we knew as digital currency exchanges were in fact brokerages, trust funds, or money laundering companies.
In the 2020s, the structure of the digital currency market will evolve as it approaches traditional financial markets, and its various functions will be legally separated. This has already happened to some extent. The Quinbis Trust, for example, is licensed separately by New York legislatures.
“Kevin Base Pro” is also registered separately as an exchange and brokerage. Like traditional financial services, customers of one product will be competitors of another.
Despite these separate components, the US Securities and Exchange Commission and other lawmakers will easily be able to build an index-based investment fund for micro-investors in digital currencies.
10. The growth of decentralization
While current exchanges of currency for digital currency largely follow the model of traditional exchanges, in a new world there will be exchanges for digital currency to completely decentralized digital currency. Immediately after converting Fiat to digital currency, you will enter a world of initiative and innovation.
In this world, insecure wallets, distributed applications, decentralized economies as well as decentralized exchanges will continue to improve in terms of security and efficiency, and we will see that many new applications from games to online communities and virtual networks will emerge in their economic context. .
Because many unsecured software and wallets will never save customers’ capital, they will be regulated as software companies, not financial services companies.
And this will dramatically speed up innovation. With the acceptance of privacy-centric coins and insecure wallets, people’s privacy will expand dramatically.
We will also see the development of a decentralized identity and the corresponding credibility of that identity. As the decentralized digital economy grows, more people will make money from digital currencies, more opportunities will open up for them, and the free global economy will thrive significantly.
11. Changing the position of billionaires and the rich
The rich who have to give their place to the rich of digital currency
And as a last resort, Olaf Carlson-Wee and Balaji Srinivasan, friends of CEO Kevin Bass, predict that in the next ten years more than half of the world’s billionaires will be out of the field. They will be digital currencies.
Whether this is a good thing or a bad thing, it means that in the 2020s, tech-savvy people will have access to large amounts of capital.
This phenomenon is likely to increase investment in science and technology, and many people from the field of digital currencies will enter the humanitarian work.
By the end of the 2020s, we will see how many of these predictions come true. By shifting the position of digital currencies from trading and speculation to real-world use, the 2020s will see a huge increase in the number of people who use or invest in digital currencies.