- What you need to know...
- Our fundamental conclusion is that cryptocurrencies do not work: slowing down transactions instead of speeding them up, adding middlemen instead of removing them and adding cost to transactions instead of removing it.
- There is no rational basis for the valuations of most cryptocurrencies.
- The current valuations of the different currencies are not based on their utility, nor are they any indicator of their future utility; they are based purely on speculation.
The future of finance, banking, and insurance will not be affected by the emergence of a clunky, slow, complex and computationally inefficient mechanism for exchanging monetary value but it will be fundamentally transformed by the impact of open banking, crowdfunding, fintech, cloud, mobility, machine learning, AI, and the lessons that can be learned from adjacent sectors like retail, utilities, and telecoms.
GlobalData’s Cryptocurrencies – Thematic Research report delves deeper into this topic.