Meltem Demirors, the commentator with some of the more incisive commentary during the dramatic BCH split of last week, has weighed in on some predictions of the what the future crypto market looks like.
Demirors, of Coin Shares, has been consistently noting how cash strapped many crypto projects are, and during the market collapse last week brought up the pressure this would put on firms operating at extremely thin margins with no valuable product.
3/ while i wasn’t there for the https://t.co/WBSHJ11UOW bubble, this article circa 2000 could be written today about crypto. tech that changes industries and markets doesn’t get built overnight. there are fits, starts, and failures. pic.twitter.com/1eMwNwqnQf— Meltem Demirors (@Melt_Dem) November 15, 2018
Demirors compares the situation in crypto to the bursting of the dot com bubble back in the early 2000’s, and is certainly not the first to bring the parallels to bear. Demirors, however, does not bring up the ‘fits and starts’ in the creation of new markets to spell doom and gloom for crypto’s prospects, but seeks to highlight the fact in a volatile, speculation driven market such as the crypto market, and the e-commerce market two decades ago, looking at commodity prices isn’t a useful forecasting tool.
Demirors notes that the crypto development community is highly motivated, and there is demonstrable interest from investors and capital.
Demirors points not only to the strength of enterprise corporations serving crypto, like Circle, CoinBase, and Binance- exchanges and investment platforms, but to the developing interest of traditional financial institutions, who in the last year started getting involved in the crypto space.
10/ more and more traditional financial institutions are looking at crypto as a way to:— Meltem Demirors (@Melt_Dem) November 15, 2018
1. create new revenue streams
2. play "innovation" theater
2. build enterprise value
all of these 👇🏾 are less than a year old! moves *may* be priced in, but more is coming... pic.twitter.com/ym7NiSDS8d
Demirors points to this process as evidence that gradual adoption of crypto is ongoing, and that the market downturn doesn’t affect what she paints as an 'inevitable' wealth decentralization in crypto.
14/ if the next five years are anything like the last, expect value to flow from centralized corporate entities to less centralized networks and applications.— Meltem Demirors (@Melt_Dem) November 15, 2018
we can't pinpoint *when* that shift will happen, but here at @CoinSharesCo - we believe it's inevitable 🚀
Demirors is correct that the market needs to look at viable products and value creation in order to perceive the markets long term movement, but its not as clear that this will lead to a process of decentralization. As institutional investment and adoption are underway, bigger players will enter the market who are motivated to consolidate what Demirors points out is still a growing market.
The fact that Ripple is seeing the fastest recovery from the market crash speaks to this fact, and also indicates where in particular investment money is feeling safe to plunge back to. Ripple is setting up their xRapid network, and the number of partners that the project has gotten on board will in itself make competing networks have a difficult time getting ahead of its platform.
Nonetheless, Demirors’ predictions are long term, and as crypto starts to make real usable products, it won’t be up to institutional investors to decide where all the crypto funds go. As crypto delivers marketable products, money indeed will decentralize by the inclusion of consumer adopters, if crypto developers can keep the technology meaningfully decentralized and independent in the meantime.