The 2024 Blockchain Prophecies: 10 Predictions for the Digital Economy
By Tal Elyashiv, founder & managing director, SPiCE VC
It’s that time of year again when all well-intentioned industry voices gaze into the crystal ball of the ever-evolving cryptocurrency and blockchain landscape and try to decipher their own series of intriguing predictions and prophecies. Some are right, some may be wrong, but in the end, they help others understand and attempt to navigate the dynamic and newness of digital finance, decentralized technologies, and the broader financial ecosystem in our Web3 world.
From the potential downfall of certain crypto trends to the rise of innovative applications and the fusion of emerging technologies, the coming year promises to be a transformative one for the world of finance and technology. Let’s delve into these predictions to better understand the shifts and developments that may shape our financial future.
SBF is going to jail for a long time: It’s not an “if” question, it’s a “how long.” failed crypto king Sam Bankman-Fried will most likely have a lengthy prison sentence, potentially reshaping the crypto landscape, which leads me to my next two predictions…
Gensler will go after crypto-related DeFi and Stablecoins: SEC Chairman Gary Gensler’s continued regulatory efforts will target high-profile figures or projects within the crypto DeFi space and stablecoins, leaving many wondering who or what might be next in his sights.
Shitcoins are dead: The era of low-value, speculative cryptocurrencies on its last leg and will quickly fade away as investors increasingly seek out projects with genuine utility and long-term potential.
Crypto winter is over: The crypto market has thawed, with increasing bullish sentiment and rising prices, suggesting that the period of stagnation and uncertainty known as the “crypto winter” is now behind us. This may also lead to more mainstream usage, which will have a significant impact on my next prediction…
Americans will now have digital currencies as part of their investment portfolios: Yes, Bitcoin ETFs will finally see the light of day. With the approval of cryptocurrency ETFs, U.S. investors will be able to seamlessly integrate digital currencies into their investment strategies, marking a significant shift in the financial landscape. But the mainstreaming of crypto isn’t necessarily the story of the year…
The tokenization of RWA (Real World Assets), and “centralized” institutions’ participation in their growth, will be the story of the year: The coming year will likely be dominated by the widespread tokenization of RWAs, with traditional financial institutions actively getting involved in this transformative process. These assets include (but are not limited to) gold and precious metals, equities, money markets, carbon offsets, treasuries, real estate, and private credit, where interest bearing assets grew (money markets, treasuries, etc) significantly due to high interest rates. This trend will continue at a staggering CAGR rate of 61%-87% until 2030, and the quality and size of tokenized assets will continue to grow as well.
You won’t be able to escape DeFi in 2024: The DeFi ecosystem is set to expand further, with various specialized branches like BusiFi, FanFi, GameFi, IndFi, MediaFi, RegFi, and SciFi (among others) making decentralized finance an integral part of various industries and daily life. For example, SocialFi will rapidly grow, leveraging decentralization to include user verification, proof-of-ownership mechanisms, and blockchain payment systems.
Not only is the Metaverse NOT dead, it will reemerge in an expanded capacity driven by enterprise use case innovation: Contrary to some beliefs, the Metaverse is far from dead and is poised for a resurgence, driven by innovative applications in enterprise settings, offering new opportunities to connect with customers, while enhancing their digital experiences..
Still no Digital Dollar, but other central banks will see the light with CBDCs: While a U.S. Digital Dollar might not be on the immediate horizon, other central banks around the world are increasingly recognizing the benefits of Central Bank Digital Currencies (CBDCs) and are likely to adopt them in the near future. In fact, Brazil, Mexico & India are scheduled to launch their own CBDCs 2024, with the EU moving further down the path as well. However, all are behind China and its Digital Yuan strategy and aggressive execution.
The coupling of AI + Blockchain will be sweeter than Swift + Kelce: The fusion of artificial intelligence and blockchain technology is expected to yield profound benefits and innovations. The combination of AI and blockchain empowers a generation of applications that harness the unprecedented productivity gains facilitated by AI while leveraging the security and transparency offered by blockchain. This convergence can open doors to innovative solutions that bring about enhanced efficiency, trust and accountability across various sectors.
About Tal Elyashiv
Tal Elyashiv is the founder and managing partner of SPiCE VC, the first full tokenized venture capital fund, as well as its sister fund SPiCE II. He co-founded Securitize with partner Carlos Domingo, which is now the leading digital security issuance and management platform globally. With a background as CIO at both Bank of America and Capital One, Elyashiv combines traditional finance experience with his visionary leadership in Decentralized Finance, making him one of the blockchain & tokenization industry’s preeminent voices and blue-flame thinkers.
Tal recently introduced his first book, Blockchain Prophecies, which is rooted in his firsthand experiences and seasoned expertise. The book reveals the underlying potential of blockchain technology, shedding light on its revolutionary impact on the global economy and our collective experience in a new digital era.
