RBC Analyst Declares Blockchain and Cryptocurrency Market to Reach Around $10 Trillion in 15 Years

On January 3, 2018, a report had been published in which Mitch Steves, the Capital Markets analyst of Royal Bank of Canada (RBC) have declared confidently that the blockchain and cryptocurrencies technology applications market will increase thirteenfold in the next 15 years, thus reaching to almost $10 trillion.

The report of Steve, “Cryptocurrency & Blockchain Technology: A Decentralized Future — A Potential Multi-Trillion Dollar Opportunity,” has been sent to the clients of RBC. Also, a short summary related to it has been shared on Twitter.

CNBC, Steves, has posted a video which covers high technology stocks like Nvidia and its value has increased due to cryptocurrency mining, protects expectations on the blockchain technology along with its applications. Steves has further said that cryptocurrencies denote only a certain part of $10 trillion pie and its bulk is in the ecosystem present between cryptocurrencies and blockchain technology.

Steves has said, “I think what people misunderstand about the cryptocurrency space is that it’s not only a store of value, but it also allows you to secure the internet.” As such, the blockchain-based cryptocurrencies allows forming decentralized versions of value storage services such as iCloud or Dropbox. The $10 trillion figure denotes one third of the present market size in order to store value.

Steves has argued that blockchain technology will allow in forming a “Secure World Computer.” This is a decentralized computer without having third-party intermediary as there will not be centralized servers for hacking purpose. He has suggested that the apps of future generation will be developed on this secure layer.

According to Steves, every move that the investors take is to involve directly with cryptocurrencies. Just like traditional stocks are taken into consideration, Steves discusses about some public companies such as Nvidia and AMS having chip power of cryptocurrency mining and private companies create ASIC chips for bitcoin mining. Also, Steves has warned that cloud service providers will probably be impacted from blockchain technology that delivers negative results in case they do not manage to adapt.

The value of blockchain technology is growing at a rapid pace due to global remittances and sending payments internationally is calculated at half trillion every year. The layers of “fat protocol” increase in value with the development of application and throughout scaling efforts like the Lightning Network that “appear on track to deliver scaling that accommodates higher transactions/second, ultimately driving higher utility and network value.”

Experts of a cryptocurrency development company says, though cryptocurrency has various risks, Steves has still argued on the fact that the opportunity seems to be vast with continuous updates on the latest technology and multi-trillion dollar market to emerge soon.

As per a recent article published by RBC, Frédérique Carrier, the head and managing director of investment strategy for RBC Wealth Management in the British Isles has argued that while cryptocurrencies may not be able to replace the traditional money, blockchain technology can have different implications in various industries and for investors in the medium to long term.

It has been noted by Carrier that the potentiality of blockchain technology “makes it a technology well worth watching closely, which we intend to do.” He has further added that RBC is testing with blockchain technology in its commercial, personal as well as capital markets businesses. Recently, RBC has announced the completion of a blockchain-based shadow ledger for the cross-border payments that will take place between the U.S. and Canada.