Barry Silbert Reveals 10 Bitcoin Predictions for 2017

Many Applications for Bitcoin and Blockchain

Silbert, founder and CEO of Digital Currency Group (DCG), recently shared his top ten predictions for 2017 at DCG’s annual Bitcoin & Blockchain Summit.

Overall, DCG is excited about applying Bitcoin and its underlying blockchain technology to trade finance, supply chain, identity and verification, cross-border payments, and as a speculative investment.

Silbert’s Top 10 Predictions for 2017: 

10. Bitcoin as a store-of-value reemerges as a key theme

Bitcoin has been dubbed “digital gold” and for good reason. Silbert expects traditional investors to start taking Bitcoin more seriously and adding it to their portfolios.

9. Bitcoin becomes more accessible to retail and institutional investors via ETF(s)

Bitcoin ETFs have huge potential to bring institutional investors into Bitcoin. While Silbert’s own GBTC and SolidX’s XBTC are already making Bitcoin more palatable to traditional investors, the much anticipated “COIN” ETF and others should help bridge the gap between cryptocurrency and legacy finance.

8. Cross border payments/remittances using Bitcoin will hit $1 billion run rate

Remittances are one of Bitcoin’s most promising use-cases, as they are cheaper and faster compared to legacy service providers. Bitcoin remittances could unseat incumbents such as Western Union as Bitcoin infrastructure continues to improve. This comes alongside plummeting smartphone technology costs around the globe, solving the proverbial “last mile” problem.

7. Exponential Bitcoin transaction growth in India, Japan & Middle East

Bitcoin’s global transaction volume has been on a steady incline since its beginnings. Moreover, tech-focused countries like India — where mobile commerce is booming — saw some robust growth in Bitcoin adoption lately.

6. Explosion of blockchain POCs focusing on supply chain

The blockchain hype has permeated into almost every industry. One key area where blockchain technology could be beneficial is the supply chain and global trade. In fact this industry is already testing and implementing blockchain technology. For example, IBM and Tsinghua University in China just partnered up to improve food quality through the supply chain.

5. Identity solution competition heats up…but no leader emerges

Identity on the Bitcoin blockchain is a touchy subject. But blockchain ID solutions could indeed solve many real life problems. These could include anything from verifying your identity to registering millions of undocumented peoplearound the globe — something the UN is currently looking into.

4. SEC comes down hard on ICOs

It’s no secret the Securities and Exchange Commission (SEC) is aware of Bitcoin. But some have warned the regulator’s next move is to close in on ICOs (initial coin offerings). The SEC could deem these as securities that may be subject to regulation. Although many in the cryptocurrency space ignore these warnings, they currently do so at their own risk.

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3. First >$50 mm M&A transaction

The Bitcoin space has already seen some notable million-dollar mergers and acquisitions. Thus, topping $50 million is not out out of the question — particularly as the nascent cryptocurrency industry grows and matures.

2. Micropayment models materialize

Bitcoin micropayment solutions are already being integrated into web-browsers, data-storage, social mediaplatforms, and more. Micropayments — as small as a fraction of a cent — could finally be sent through the internet using bitcoin. This could flip the ad revenue model on its head through disintermediation. It could also pay content creators as well as consumers directly.

1. Bitcoin price on 12/31/2017 will be “higher”

Silbert has been noted to make bullish regarding Bitcoin’s price in the past. Given the currency’s stellar performance the past few years, the price could certainly go “higher” if not to the moon.

Finally, DCG adds that it’s doesn’t yet buy into the hype around some bleeding edge technologies. The group lists Ethereum, “Smart” smart contracts, decentralized autonomous organizations, and ICOs as some of the technologies that have yet to prove themselves in the real world. Given last summer’s DAO debacle, however, this comes as no surprise.

About Barry Silbert and DCG

Besides being named Entrepreneur of the Year by Ernst & Young and Crain’s, and making Fortune’s “40 Under 40” list, Silbert is a prominent investor in the Bitcoin space. He has injected millions into numerous Bitcoin startups including Coinbase, Ripple, and BitPay. Silbert’s Digital Currency Group also comprises Grayscale Investments (GBTC), Genesis Trading, CoinDesk, and a portfolio of over 80 investments in 20 countries.

Do you agree with these predictions? Share your own predictions for Bitcoin in 2017 below!

MIT Launches Blockcerts Certification Using Bitcoin

Back in June MIT Media Lab tested certification authentication using the Bitcoin blockchain. After working on research and development for over a year, the school organization has released an open standard for digital academic certificates called  Blockcerts.

Also read: MGT Capital & Bitmain Focus On U.S.-Based Bitcoin Mining

Blockcerts Enables Immutable Certification for Anyone  

Blockcerts is a MIT Media Lab project utilizing the Bitcoin blockchain for digital notarization. Developers said the platform also allows a decentralized credentialing system. The open source application can be used for “academic, professional, and workforce credentialing.” Blockcerts maintains its foundations as an open software application that allows any individual to take control of their credentials with an immutable method.

By putting its application on the Bitcoin blockchain, the project builds a new trust infrastructure. Bitcoin’s protocol removes the dependence on third party arbitration which is impermanent and filled with complication. MIT Media Lab explained the Bitcoin blockchain replaces centralized entities with a “permanent and tamper-proof infrastructure of trust.”

Moreover, the digital ledger is fully transparent, and data can be shared among the public for verification purposes. This gives individuals their own personal notary, and the ability to control their official records. Blockcerts website explains:

Blockcerts is the open standard for blockchain certificates.— Build apps that create, issue, view, and verify blockchain-based certificates within academic credentialing, professional certifications, and workforce development.

Blockchain Technology Could Replicate Historical Methods of Certification

The research team: Juliana Nazaré, J.Philipp Schmidt, and Kim Hamilton Duffy had written various papers on the subject leading to the launch. Schmidt’s paper proposed the technology could replicate how certification took place in the past. In historical times “journeymen carpenters carried around their books of stamps and references,” explained Schmidt. With distributed ledger technology available to anyone, people can leverage the Bitcoin blockchain for record keeping.   

“Using the blockchain and strong cryptography, it is now possible to create a certification infrastructure that puts us in control of the full record of our achievements and accomplishments. It will allow us to share a digital degree with an employer while giving the employer complete trust that the degree was in fact issued to the person presenting it,” stated Schmidt.

The MIT Media Lab project has already deployed a few instances of blockchain-based digital certificate verification. In October of 2015, the group issued certificates to Media Lab alumni who attended the Lab’s 30th anniversary. The organization Learning Machine also issued HR certificates to employees. MIT’s Global Entrepreneurship Bootcamp workshop in Seoul, South Korea in March 2016 published digital verification using the system. Lastly, Laboratorio para la Ciudad issued digital certificates to workshop participants in Mexico City in September 2015.

A Distributed Record That Could Help People Continue Progressing Academically, Within a Workforce Environment

The MIT Media Lab developers are quite pleased with the project. This certification process shows the importance of a distributed ledger with immutable permanence. Blockchain certification using Blockcerts is tamper-proof and cannot be updated or edited. However, certification issuers can revoke certain records “by spending the revocation address that they generated for a particular recipient.”

The new process shows a well-researched and developed application that brings a different element to the Bitcoin landscape. The idea of notarization using the Bitcoin blockchain has been known for quite some time, but MIT Media Lab put the idea to work. By building a system that includes step-by-step instructions that are open to anyone, more employers and universities may try the new certification process. The protocol could prevent significant transcript errors as the organization explains stating:   

“When certification systems are not working well, the consequences can be more than just inefficient, such as the cumbersome and expensive process of requesting a university transcript: they can be disastrous, such as when a refugee is unable to provide a certificate of completed study and is therefore prevented from continuing her education. Digital systems could help in both of these situations.”

What do you think about MIT Media Lab’s Blockcerts platform? Let us know in the comments below.

S&P: Widespread Blockchain Implementation Could Affect Ratings

Standard & Poor’s (S&P) Global recently published a report detailing its view of blockchain technology. The credit rating agency also revealed how blockchain development could change its credit ratings of financial institutions.

Also read: Needham Downgrades GBTC Rating, But Predicts Bitcoin Rally to $848 

Blockchain Could Affect Credit Ratings

Known for its stock market indices such as the S&P 500, the company is one of the Big Three credit rating agencies. The other two are Moody’s Investors Service and Fitch Rating.

In a new report entitled “The Future Of Banking: Blockchain Can Reshape The Financial System?” S&P acknowledged blockchain‘s impacts on financial institutions. It noted that the rising investment in the technology “suggests that a transformation of the global financial industry could be underway.” This report is published by S&P Global Market Intelligence, a division of S&P Global.

However, the report states that since blockchain is still in an early stage of development, “it is not clear what impact it may have on our ratings in the industry.” Due to factors such as consensus requirements among market participants and regulatory approval, “market-wide adoption is a long way off,” S&P says. The rating agency further noted that:

“IT [BLOCKCHAIN TECHNOLOGY] COULD PLAY A ROLE IN OUR ANALYSIS IF WE BELIEVE THE TECHNOLOGY MARGINALIZES CERTAIN BUSINESS MODELS OR ENABLES A COMPANY TO DEVELOP A DISTINCT COMPETITIVE ADVANTAGE.”

S&P is closely monitoring blockchain development which “could consider rating changes if its widespread implementation occurs faster than we currently expect.” Companies whose ratings will be impacted are those with operating models that will be significantly changed by blockchains.

S&P Sees Blockchain Benefits

Overall, S&P recognizes the benefits of the technology. “We believe that, at the very least, blockchain presents an opportunity for financial institutions,” the report says.

The technology can streamline back-office operations which would cut costs. It will also shorten settlement times, facilitate payments and “even generate new revenue streams,” S&P suggested.

The company expects larger financial institutions to start using blockchains over the next two years but “in a narrow context.”

When do you think S&P will consider blockchain technology seriously? Let us know in the comments section below.

By Kevin Helms