How much could blockchain be actually worth?

Summary:

• Bank of America analysts try to estimate value of blockchain technology

• Venezuela announces the petro its new national currency

• Bitcoin continues moving within the triangle pattern, Dash breaks lower

Over the past hours major cryptocurrencies saw a steady and gradual decline, however, a broader increase occurred this morning. Today we would like to write more about two topics. The first one concerning BofA’s estimates with respect to value of blockchain technology, and the second one regarding the Venezuela’s economy and its unprecedented decision. Beginning with forecasts of Bank of America’s research analysts let’s notice that their estimates suggested that the blockchain market could be eventually worth $7 billion but they did not set a particular timeline for the market growth. What are assumptions to these predictions? The most important one suggests that as much as 2% of servers globally will one day be used to run blockchain. Moreover, the US investment bank wrote in a note to clients on Tuesday that “Amazon will benefit from incremental cloud services demand from blockchain implementation, while improved supply chain tracking should make Amazon's retail operations more efficient”. When it comes to other companies which could also benefit from blockchain implementation the bank singled out Oracle, IBM, Salesforce.com, VMare, and real estate and mortgage players such as Redfin, Zillow and LendingTree. Even as the bank’s predictions could be encouraging it also admitted that “there are a wide range of blockchain estimates out there” adding that “many blockchain use cases have been identified, but full products/services have not yet been built out and are not used in production”.

Bitcoin continues trading within the triangle pattern but its end does not seem to be remote. It is reasonable to assume that the price could witness heightened volatility over the upcoming hours. Source: xStation5

Everybody is familiarized with an idea of the Venezuela’s government which wants to tame the currency crisis and stem unbridled price growth by incorporating the petro (cryptocurrency) to the economy. However, the government has moved forward in this field in recent days. Namely Venezuela’s president Nicolas Maduro announced the launch of the petro as a national currency on Monday, purportedly claiming that it is already “present in the world’s six topmost international exchange houses”. Nonetheless, credibility to the Venezuela's petro could suffer as it has turned out that the petro is no longer 100% backed by oil, according to a new white paper published earlier this week. On the other hand, this document pointed out that the petro is backed by some of Venezuela’s other resources. Notice that the country has also launched a new national currency called the sovereign bolivar. The government also determined that each unit of the cryptocurrency will be equivalent to 3600 sovereign bolivars. Maduro also said that from 5 November “the Venezuelan people will be able to purchase the petro cryptocurrency with sovereign bolivars”.

While Bitcoin keeps consolidating Dash has seen a breakdown of its crucial trend line in recent hours. Hence, barring a comeback above this line one needs to take into account an extended slide toward the nearest support which could be found nearby $164. Source: xStation5