Analysts at Bernstein believe that the industry of the blockchain creates a “parallel financial networks”, which are alternative to existing systems.
These new platforms don’t work “on the periphery of the mainstream economy,” said analysts in the report. But with increasing size and scale they will attract mainstreamy capital, experts believe Bernstein.
They described the development of a new asset class “market innovation experiment” and noted that he is not devoid of problems, such as fraud. According to analysts, the cryptocurrency market is an effective mechanism for the natural correction that distinguishes it from the dot-com bubble of the 1990-ies.
“Monitoring the collection of funds as fraud and regulatory skepticism prevent to consider this market as an innovative experiment to create a new financial system. And trading market 24/7 acts as a correction for poor participants in contrast to the dotcom bubble, where the feedback for the weak business models was delayed. Kryptering daily build and destroy the state,” said the report’s authors.
They noted that bitcoin is the first private and uncontrolled Central object — a financial asset that is traded globally around the clock. A cryptocurrency facilitates international money transfers and payments, producing them within the hour with a Commission of 0.5-1% that can offer no Bank or payment system, said Bernstein analysts.
Earlier, billionaire investor Mike Novogratz (Mike Novogratz) compared the surge in prices of cryptocurrencies in the end of last year with the situation on the market of the dot-com in 1996. He also predicted that in the future, cryptocurrency market capitalization will reach $20 trillion.