Five crypto learnings from the seventh Satoshi Roundtable
At the end of July, leaders and decision makers from the crypto community flew down to Mexico to participate in the invite-only Satoshi Roundtable event. It was incredible to see so many passionate leaders in the space who have had success building and launching industry-changing services and who continue to find new and innovative uses for crypto and digital assets.
With the depth of conversations happening, it was easy to forget we were beachside. Conversations focused on where the crypto market is and where it’s going, sharing insights that proved immediately impactful for some businesses and delivering new points of view from executive, developer, and investor perspectives. This is what makes the Satoshi Roundtable experience invaluable.
Here are some of my top learnings from my experience at Satoshi Roundtable VII -- without sharing the content of private conversations:
NFT use cases are only increasing
The crypto community anticipates far greater adoption of non-fungible tokens (NFTs) than what we’ve seen so far. To date, NFTs have provided a new way to conceptualize unique and private assets, creating new marketplaces and offering new opportunities for liquidity. What started as a way to verify ownership and provenance of digital art has transformed asset classes of all kinds, and is blurring the lines between our digital and physical realities.
New use cases that are currently developing include, ticketing, the tokenization of written pieces, which could change the incentivization model for authors, and the creation and furnishing of digital worlds, all blurring the lines between physical and digital reality.
It will be fascinating to see what use cases will develop and penetrate the market over the next couple of years.
The digital world still relies on fiat
We need seamless methods to integrate traditional fiat currency like USD in order to fuel the growth of crypto assets. Fiat currency may be the antithesis of Bitcoin and other cryptocurrencies, but it is the on- and off-ramp for the majority of people to adopt and participate in decentralized finance.
We bridge these two financial worlds at Prime Trust, providing you with the rails needed to bring fiat currencies onto your platforms and convert them into crypto for trading, lending, and much more.
The adoption of crypto is industry-changing
Acceptance has expanded well into the mainstream as companies focus on retail-centric products and services that make crypto accessible with easy on- and off-ramps, which is something we see amongst many of our customers at Prime Trust. Glassnode data suggests that the number of retail investors buying bitcoin is increasing -- the number of wallets with a balance of 0.1-1 BTC is trending up.
Additionally, the number of individuals with traditional banking backgrounds participating in crypto is increasing, as are the use cases sought by traditional banks.
This not only shows us the proliferation of crypto, it demonstrates the growing interest that people have in alternative stores of value and methods of value transfer.
Maintenance of decentralization is key
Decentralized protocols are the foundation of crypto, and as leaders in the industry, we must be careful to protect this. Our decentralized and centralized worlds can co-exist, but we must be thoughtful about long term effects of decisions made today.
Decentralization is not just about local financial autonomy, it is also about global connectivity and the ability for many people to access reliable financial systems. Decentralization has promoted incredible innovation in the US and across the world, and from that we are witnessing the development of new economies, businesses, and job opportunities.
Regulation supports protection and convenience
Given recent regulatory moves affecting crypto by China, the United States, and other regions, much of the conversation at Satoshi Roundtable was focused on regulation. Even those topics that weren’t focused on regulation had regulatory undertones. It was clearly on the minds of many.
Some, like me, are in favor of regulation, not because I want more regulation, but because I want greater clarity and a confident path toward operations without fear of enforcement of the unknown. Others are comfortable with the status quo. Still others wanted entirely no regulations.
Balance is key. While we must protect the pillars of decentralization, we must also aim to make crypto functional for the majority of people. We have to gingerly balance safety and protection of people against obstruction of technological advancement and destruction of privacy.
Satoshi Roundtable VII showcased many leaders who are working to innovate within the financial system while maintaining regulatory KYC and demonstrating how traditional securities regulation can be applied thoughtfully to the digital world.
I’m excited to see where the momentum we’re witnessing today in the crypto industry will take us in the near future. Prime Trust has the infrastructure you need to build and scale upon, regulatory clarity is hopefully coming as authorities become increasingly aware, and retail and institutional investors are viewing Bitcoin and cryptocurrencies as important parts of their portfolios. Let’s keep building!