After a turbulent (crypto) year 2020, we would like to look ahead to what awaits us in the next 12 months. How far is the DeFi sector really? Could NFT be the next big hit? And what about the regulation of crypto currencies such as Bitcoin or tokenized securities, so-called security tokens?
Investors, Bitcoin Up fans and technology enthusiasts are faced with the difficult challenge of assessing which developments in which crypto area can be expected in the next few months. In an extensive analysis in the December issue of the Crypto Compass , we therefore examined the five most relevant crypto investment topics.
The 5 top topics: Bitcoin, Stablecoin, Security Token, DeFi and NFT
The top 5 topics include: Bitcoin, Stablecoin, Security Token, DeFi and NFT. We have subjected each of these segments to five criteria. Specifically, we looked at what developments can be expected in the following areas in the crypto year 2021:
Maturity: It is checked how high the establishment and use is. For example, is there a functioning, sustainable ecosystem? Have service providers established themselves around the range of applications?
Bladder and hype potential : how much substance is behind the current developments in the crypto issue? What is the risk of blistering?
Regulation : What about the regulatory opportunities and risks that the topic holds in store? These can be legal framework conditions that have a beneficial effect on the topic, but they can also be negative when it comes to restrictions or requirements that hinder innovation.
Innovation: Can greater progress be expected in further development? Are new areas of application already emerging that will enable further investors?
Competitive situation : is there competition from traditional markets that could erode the crypto sector? Examples would be traditional services such as documentary securitization, payment service providers, but also government alternative offers.
In order to gain even more clarity, we have integrated a point system into the analysis, which indicates how high the expected dynamic is in the respective field. The point scale ranges from 1 (not much will happen, little dynamic) to 5 (very much will happen, very dynamic).
How is the competitive situation with Bitcoin?
If we pick Bitcoin, then, for example, the criterion of the competitive situation is rated with two points. This rather low dynamic is due to the fact that Bitcoin’s status as a crypto key currency is beyond doubt.
Bitcoin competes, if at all, with the precious metal gold. Despite major differences between the two asset classes, Bitcoin has to compete more and more with gold as a store of value. Bitcoin and gold are fighting for the highest possible weighting in the portfolio, even if only slightly. Ultimately, however, one cannot speak of a tense competitive situation.
Crypto compass: start the new year well prepared
How Bitcoin and the other topics fare in the areas mentioned and which relevant influencing factors will shape the coming year is explained in detail in the new edition of the crypto compass. In addition to our cover story, there are exciting background reports on the exchange company Wordline, the largest payment processor in Europe, and Kapilendo, a Berlin fintech that connects the traditional financial sector with the token economy.
In addition to these insights, critical guest articles on Bitcoin and DeFi offer what is necessary to be able to have a say among crypto professionals. This and much more on almost 70 pages in the new crypto compass .