The Next Big Boom in Crypto: How Emerging Technologies Can Drive It

When Jack woke up on a Monday morning, he found himself richer than he could ever imagine. The $50 worth of cryptocurrency he invested in a new digital asset skyrocketed to $500 overnight. The boom seemed as sudden as a thunderclap, and Jack wanted to dig deeper into what caused it.

As he researched the market, he realized that the logical convergence of Artificial Intelligence (AI), the Internet of Things (IoT), 5G Networks, and Blockchain technology would be the new driving force behind the crypto market's next big boom.

The new emerging technologies that can drive the Next Big Boom in Crypto

• Artificial Intelligence (AI)

  AI can function as an operational and analytical back-end that would allow crypto enthusiasts to get a handle on a massive amount of data. It helps to predict market behavior and provides insights into the ongoing activities and behavior of people in the market, thus helping the investor to make an informed decision. For example, Emergence Capital reported that crypto investments in AI has raised $1.2 billion in the past two years.

• The Internet of Things (IoT)

  The rise of IoT paved the way for smart cities to integrate and streamline processes, enabling better and secure transactions. In addition, it allows people to efficiently manage their assets and provide secure trade both on and off the blockchain. According to Statista, the number of IoT connected devices is expected to reach 30.9 billion in 2025.

• 5G Networks

  With 5G Networks, faster transaction times and high data transmission rates will become a reality. The faster the transaction, the more transparent the trade activity, and the efficient market becomes. According to a report by Ericsson, 5G networks are likely to cover over 1.5 billion people worldwide by the end of 2025.

• Blockchain technology

  Blockchain technology ensures transparency and immutability of transactions, which ensures the security of the transactions. Blockchain-based crypto assets have the potential to transform traditional financial institutions and revolutionize industries; an example includes the ability to create decentralized systems that exclude intermediaries altogether.

The following examples highlight how these technologies are currently driving the crypto market and the potential of their convergence:

• AI and IoT: The Enablers of the Smart City of the Future

  Sensors around a city, combined with AI, can evaluate information on trends that can improve the living conditions in the city. For instance, air quality sensors detect pollution rates in real-time, enabling individuals to avoid exposure to harmful substances. Additionally, smart grid systems can automatically reduce energy consumption during peak consumption hours, thus making the city more power-efficient. In addition, smart surveillance allows for better utilization of personnel as well as the deployment of crime prevention applications. A report by Markets & Markets predicts that the smart city market will reach $820 billion by 2025.

• The 5G Network: Streaming and Microtransactions of All Sorts

  A 5G-powered transaction network would offer low-latency trading and permit an abundance of small transactions, considered "microtransactions." Low latency enables faster transaction execution and real-time events data, which experts believe is the future of financial services. A world of microtransactions includes a vast array of small transactions for gamers, online retailers, and other service providers, which add up over time. Statista reports that 40% of gamers have purchased game upgrades via mobile carriers in 2020.

• Blockchain and Smart Contracts: A Secure and Automated Trading Environment

  Smart contracts are blockchain-based computerized systems that fly on their own and execute agreed-upon actions or contracts automatically. As a result of the automation, smart contracts increase efficiency and decrease record-keeping expenses. In addition, smart contracts increase security as they make tampering impossible by either parties, thus making trades more secure. With its capabilities such as disintermediation and credit-scoring, blockchain has the potential to alter the banking industry. Reports from the World Economic Forum indicate that blockchain will circumvent the conventional banks' services, allowing them to transfer funds faster, at a lower cost, and with greater transparency.

Conclusion

In summary, emerging technologies like AI, IoT, 5G networks, and blockchain offer excellent opportunities for innovation in the crypto market. Significant progress has been witnessed as the technologies mature and become widely adopted, driving the rise in the value of crypto assets. The integration of these emerging techs holds major potential to revolutionize financial institutions and the wider global economy.

Thus, the Next Big Boom in Crypto may not be far off, as the convergence of these emerging technologies offers investors opportunities to make significant gains.

To ensure that we are prepared for the forthcomings, individuals and institutions need to make deliberate choices towards adoption and investment in these emerging technologies.

References:

• Emergence Capital https://emerj.com/ai-investing/top-ai-investment-funding-rounds-2019-2020/
• Statista https://www.statista.com/statistics/802690/iot-connected-devices-worldwide/
• Ericsson https://www.ericsson.com/en/reports-and-papers/consumerlab/reports/networked-society-lab-5g-consumer-use-cases
• Markets & Markets https://www.marketsandmarkets.com/Market-Reports/smart-cities-market-542.html
• World Economic Forum https://www.weforum.org/agenda/2017/06/blockchain-explained-why-it-could-transform-the-world/