This week: Cryptocurrencies Decline, Microsoft Azure Announces Blockchain Token and Data-management Service, Deutsche Bank Says Crypto Could Replace Cash by 2030 anf Nike to Start Tokenizing Its Shoes on Ethereum
As Cointelegraph reported, multiple analysts suggest that Bitcoin is headed for a big dip before the next bull market. Many cryptocurrencies shed another 7-9% to hit lows we have not seen in many months.
For example, Bitcoin reached $6,430 — its lowest level in over seven months, Ether dropped to near $120 and XRP at two-year lows.
At the moment, there doesn’t seem to be any specific event that has triggered the decline.
After such a fall, most cryptocurrencies will likely go through a bottoming process before starting an uptrend. Fresh crypto allocations might happen early next year but large players are unlikely to buy straight away. They will likely accumulate at attractive prices before pushing them higher. This is why the retail traders would have to endure the volatility before a new uptrend begins, and short-term traders can trade the relief rallies in a downtrend.
However, maximum investment opportunity usually happens when prices are not showing the progress yet. As current sentiment couldn’t be more bearish, generally, the highest returns are made from investments contrary to the sentiment.
Microsoft Azure Announces Blockchain Token and Data-management Service
Meanwhile, Blockchain is seeing increasing adoption in different industries.
Microsoft’s blockchain-enabled cloud service Microsoft Azure announced new tokenization and blockchain data management services.
The Azure Blockchain Tokens service is looking to simplify the creation and management of compliant tokens built to industry standards. The firm also has pre-built templates for common uses and a gallery for templates created by partners, expected to be added in the future.
Another service announced, the blockchain data manager, is the company’s feature that is meant to allow the users to capture blockchain ledger data, transform and decrypt it, and deliver it to multiple sources. The announcement says this new functionality simplifies the task of integrating existing applications with data on a blockchain ledger.
Microsoft has also collaborated with blockchain games platform Enjin to create a series of reward collectible badges to recognize Azure cloud community contributors as Azure Heroes. Each reward badge – is a non-fungible or unique digital token on the public Ethereum blockchain.
The Enjin announcement states that “Azure Heroes aims to recognize the real contributions in the Microsoft developer community, such as volunteering, mentoring, teaching others, and creating inclusive environments — the things that communities are all about.”
Deutsche Bank Says Crypto Could Replace Cash by 2030
According to new research from Deutsche Bank, cryptocurrencies have the potential to eventually replace cash.
In the “Imagine 2030” report, the Bank stated that cryptocurrencies may have been “additions” rather than “substitutes” in the finance world up until now, but the upcoming decade could change that.
The current fiat system looks “fragile,” because of “decades of low labor costs” and inflation. Over the next decade, this could change and “demand for alternative currencies, from gold to crypto, could take off,” according to the report. Benefits of cryptocurrencies such as privacy, security, speed, minimal fees, ease of storage and “relevance in the digital era” could help bring mass adoption in the upcoming years, it added.
However, cryptocurrencies have to become legal in the eyes of governments and regulators to become widespread, per the report. This would bring price stability, global reach and increased interest from companies.
On the other hand, with mainstream adoption, new challenges will appear, such as dependence on electricity, cyberattacks and a digital war.
Having in mind the banking industry’s often negative attitude towards crypto, it’s surprising that one of the largest banks in the world appears bullish towards adoption. It only shows that crypto is here to stay and appears to be the future of the global financial system.
Nike to Start Tokenizing Its Shoes on Ethereum
Sports company Nike announced it has been given a patent to tokenize its shoes on the Ethereum blockchain. Nike announced its plan to generate unique IDs and create ERC 721 tokens for some shoes, named CryptoKicks.
The company also noted a possibility to launch similar lines of apparel and more, such as “CryptoThreads,” “CryptoLids,” and “CryptoGear.”
When buying Nike shoes, customers will be able to “unlock” the tokens and link them with unique owner IDs to confirm their ownership. This should also enable users to utilize more control over their shoes origin and shoe designs, like the application that allows users to set limits on the number of exact copies of their shoes that are allowed to be produced.
The most exciting feature of blockchain is its ability to protect digital identities and authenticity, which will prove to be very useful in various industries, such as fashion. Counterfeit products are taking profits away from brands while reducing the quality of items, and harming the brand’s reputation. Using blockchain technology, every item’s origin and ownership can be tracked all the way to the source, and counterfeit products will, therefore, be easily recognized.