Autonomous NEXT and Latham & Watkins LLP analyzed the regulations covering most of the crypto hubs of the globe. The criteria for mapping each country’s respective regulation standpoints are: (1) Negative, (2) Neutral, (3) Mixed, and (4) Positive. Our findings show that the most active countries in the crypto space such as Japan, South Korea, U.S., and Russia have both positive and negative indicators of support within the space; whilst some countries such as Brazil, China, India, and Nigeria have implemented outright bans on cryptocurrencies, mining, or ICOs.
Autonomous NEXT has identified the four key waves of innovation within crypto themes starting with: (1) Bitcoin, (2) Enterprise Blockchain, (3) Decentralised Apps, and (4) Smart Securities.
Firstly, Bitcoin in 2008 exemplified the first decentralised and secure digital store of value from 2008, potentially disrupting $7-100 trillion in the global macro trade. Enterprise Blockchain in 2014 allowed for private consortia within industries to take advantage of the efficiencies of the blockchain whilst retaining necessary elements of privacy, impacting $500 billion of costs in financial services alone. Decentralized Applications commercialised blockchains further by allowing for entrepreneurs to build digital products and services (ICOs) harnessing the security and efficiencies of the blockchain. Finally, Smart Securities launched in 2018 enabling for further institutionalization and tokenization of the crypto space, spreading the overall impact to all asset classes valued at $500 trillion.
Autonomous Research have analysed and compared transactions and market capitalisation between Visa, MasterCard and the blockchain platform, Bitcoin. In the fourth quarter of 2016 Visa and MasterCard transacted volumes of US$1.9 trillion and $1.2 trillion respectively, with their market cap approximately equalling 1% of transactions volumes. Alternatively, Bitcoin had $107 billion in transaction volume in 2016 and its ecosystem is valued at $11 billion, although another $30 billion can be priced into Bitcoins market cap as a growth prospect. That number can be discounted due to the high correlation between funds and speculation, lack of full scale and technical and regulatory issues. However, it can also be buffered by the other 50% of Cryptocurrency assets and next-gen growth technology that is being integrated into the ecosystem.