VanEck: Blockchain’s real world impact grows as hype recedes
VanEck: Blockchain’s real world impact grows as hype recedes
- As the buzz around blockchain technology has subsided, so the technology is beginning to show signs of fulfilling its potential across a range of areas
- From financial services to supply chains, blockchain is beginning to enable disruptive product innovation and greater efficiency
- The VanEck Crypto and Blockchain Innovators UCITS ETF offers access to the technology ecosystem’s crypto miners, exchanges and other businesses
It’s said in economics that “things take longer to happen than you think they will, and then they happen faster than you think they could.”[1] Much the same may happen with the blockchain – the digital ledger technology that not only underlies cryptocurrencies but also has the potential for enabling innovation across a range of sectors.
Blockchain became widely noticed in 2009 when the Bitcoin cryptocurrency was released. It was touched by some of the hype around cryptocurrencies. In 2017, for instance, the New York-based beverage maker Long Island Iced Tea changed its name to Long Blockchain Corp, announcing it would invest in cryptocurrencies.
The result? Reportedly, the stock price briefly climbed by 500%.[2] Since then, though, the technology has gradually been recognized for its numerous potential applications. In short, the blockchain’s main advantages are: decentralization, immutability, transparency and security.
The hype has subsided and blockchain technology is quietly being adopted across the economy. Most publicly, Bitcoin is gaining respectability after the US Securities Exchange Commission, the financial regulator, approved the first spot Bitcoin ETFs in early 2024. Yet, less noticed, the technology is being applied in financial services, the public sector, insurance and corporate supply chains. The potential for innovation is considerable.
Below is an illustration depicting where McKinsey & Company sees blockchain having the greatest strategic business value.
After the hype has subsided, blockchain is quietly growing. The blockchain technology market was valued in 2022 at $11.1 bn and is projected to grow from $17.6 bn in 2023 to around $470 bn in 2030, according to a study conducted by Fortune Business Insights3. That equates to an impressive compound annual growth rate (CAGR) exceeding 50% over the forecast period.
[1] Quote attributed to Rudi Dornbusch, the distinguished German economist.
[2] ‘Fake it till you make it’ - but know when to stop. Financial Times. June 22, 2018.
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