Based on our research and simple Quants concerning market share and cap of major high cap Cryptocurrencies , estimations disclosed facts which could be taken as a simple but efficient indicator in portfolio managers toolbox. But the purpose of such 30 minutes effort is something else. Based on Bitcoin market share of 56.2%, the average productivity has been estimated around 0.034% which is based on machine hours, number of nodes, network hashrate, machine processing power and taking some discrepancies into consideration. The same methodology has been used for Ethereum by having 10% market share and 169.8% average productivity. And XRP? But the productivity has got a limit when hitting network DMR. This is the point where new nodes have to be engaged to lag DMR. But what would be the next limit and how about consequences? Concerning scalability, according to electricity consumption estimates and profit margin, there would be no incentives for miners. Credit Suisse’s ballpark figure assumes that 80% of the expenses of bitcoin miners are spent on electricity. [https://bit.ly/2Dcvcr3] and Bitcoin’s current estimated annual electricity consumption is 61.4 TWh, which is also equivalent to 1.5% of the electricity consumed in the United States. [https://bit.ly/2JRnhRn]
Nevertheless, even if scalability and electricity consumption has been resolved, another issue will rise, regulatory regimes. And it's degree of importance will be disclosed considering Bitcoin’s Market Valuation Outpaces the IMF’s Special Drawing Rights Reserves. [https://bit.ly/2Qy9i5w]
In reports published by "CFA" Institute,
The Future State of Investment Profession
[https://cfa.is/2z2vSfU] and Investment Firm of the Future [https://bit.ly/2QwZNUd], four unique scenarios has been created which offer a road map for leaders in their strategic decision making as they seek to chart a course for the future of their firms and provides insights for professionals interested in becoming future industry leaders by identifying the traits and abilities that will be prized by future investment management organizations. Concerning Crypto Assets, I would like to pop up a question which is still challenging to answer without taking the "CFA" reports into consideration.
* Blockchain technology, a WORM (Write Once Read Many) ledger constructed by a composition pattern including a linked-list and a tree with underlying algorithms, has been created to operate in a peer-to-peer trustless environment which eventually its state will be shifted to trusted. Considering its potential use in today's problem solving in variety of domains, how the upper layer could be aligned with future state of investment industry and profession?
Regulating Bitcoin by Japanese government demands its own research and analysis which this Bloomberg article could help in such due diligence. [https://bloom.bg/2GOVoLq]
Economies in isolation will not survive. Scarcity of resources threatens all countries in the world. Implementing a finance ecosystem by not considering societal wealth and well-being not only hurts domestic economy but global sector. It is time, maybe a bit late, to rethink and restructure our thoughts, collectively.
Thank you for your time.