Happy Holidays dear community! We hope you are enjoying these holidays amongst family and friends, surrounded with delicious homemade-cooked food and quality conversations.
Heck, maybe use the holidays take a break from the usual routine and to read more about our project. Knowledge is never too much, is it?!
And since we’re on the topic, let us share with you our personal bet (pun intended!) for how the markets will develop during 2019. (Not financial advice, obviously)
We try to follow the most important trends here at BetProtocol, so we would like to share a sneak-peak on GP Bullhound’s research findings on cryptocurrency markets. They are an independent research firm for investments in digital media, software and services, clean-tech and hardware. You can find the original document here.
“We predict 2019 will be the year of institutional capital inflow into blockchain, which will not be solely financially motivated, but backed by increasing demand we see on the corporate and family office side and their desire to build positions. Initially this will happen through funds, equity investing into blockchain technology projects as well as financial instruments and derivative products related to major cryptocurrencies. But the question remains: what obstructs professional capital inflow?”
Bullhound answers the question by referring to a couple of the main issues we currently face in the cryptocurrency space, some of which are directly linked to BetProtocol’s purpose and mission.
The research group argues the SEC’s ruling of not considering Bitcoin nor Ethereum a security was a solid win for the cryptocurrency markets, however, most ICO’s were, and still are, non-compliant as most fall under the SEC’s definition of security. They expect STOs, or Security Token Offerings, to become more popular, and possibly spark another bull run. This could in turn bring a much needed wave of institutional investors, as well as opening the doors to actual Tokenization of Assets. And this tokenization, Bullhound argues, could bring much more liquidity and value to not only the crypto market, but global capital markets as well.
It shouldn’t be surprising that we are already preparing for the next year too!
BetProtocol is fully compliant with European gambling regulations, and allows for any developer to quickly deploy a betting Dapp, under the same licensing scheme. Malta and other countries are at the forefront of the intersection of #blockchain and gambling, and we at BetProtocol are paying close attention. Alongside Bullhound, we believe that once clear and smart regulation is in place (that benefits the blockchain space, allowing for innovation while protecting consumers) the overall cryptocurrency world can thrive. And not on just pure speculation (like in 2017), but in real world adoption and use-cases (2019).
Bullhound mentions low liquidity as a current problem of the cryptocurrency markets, which is absolutely true if we look at the crypto market as a whole. Besides major cryptocurrency exchanges, and a few Dapps, there are still very few transactions and actual usage of decentralized applications.
We see the reason for this low user adoption to be a mixture of: requiring native token usage, bad UI/UX, and lack of standards for backends and protocols.
BetProtocol sees these problems and solves them.
Our solution to the problem is simple and effective. In essence, payment transactions (wagers) on BetProtocol will be made through the most liquid cryptocurrencies (BTC, ETH). Other cryptocurrencies such as stablecoins may be offered in the future once a sufficient level of liquidity and marketcap are achieved to support a high-volume of bets.
Plus, remember our dear BPRO token?
BPRO token is used as a platform buy-in stake for operators, and a mechanism for paying a success fee if profits are made. Why use BPRO? Because of the “skin-in-the-game” argument, and because it’s much cheaper than the current status quo. Online gaming operators already have to shell out as much as $500,000 just to get operational, while with us they can do it at a fraction of that cost. The added “friction” of acquiring BPRO is totally negated by the yearly cost savings.
The way Bullhound expects the cryptocurrency market to develop throughout 2019 is to have teams focused on improving products, institutional investors to jump in full-force, and for more users to switch to crypto-enabled applications:
“Overall, the correction is ongoing and healthy for the sector to allow the technology to catch up. The main activities we currently see are around
building the products and services aimed at reducing the barriers of adoption both on the retail and institutional side. The capital formation at the exchange and issuance platform level is expected to catalyze near-term consolidation aimed at growing the number of wallets, users and trading
volumes. We look forward to an interesting 2019 in DLT and expect another wave of hype — this time more technology and product focused”
Our goal for 2019 is to make this our best year ever, by delivering upon our 2018 promises: to build a decentralized betting protocol based on blockchain, which allows operators, players, and regulators alike a safer and more rewarding gaming experience.
Enjoy your holidays everyone!
See you in #2019!