In his plenary talk to the MBA Class of 2017, Professor Arun Sundararajan discusses Uber, Airbnb and the sharing economy; explains the re-aggregation of distributed value from blockchain markets; and speculates on the future of crowd-based capitalism.
The following data compilation gives us an overview on why the bitcoin, blockchain and financial tech industry might have found its innovation sweetest spot in Asia.
[#1] Asia’s wealth creation capacity is on its way Up!:
–> Asia-Pacific is projected to hold one third of global wealth in 2019.
[#2] Population numbers present advantages when compared to other regions:
–> Asia represents 1/2 of the world’s population. Six of the top 10 countries in population size are Asian.
–> Most developing countries in Asia count with a great percentage of young population, seeing their spending waves peaking around the 2060/70s decades.
[#3] Bullish bitcoin adoption and industry development show signs of commitment and growth:
–> China registers 800,000 bitcoin users and concentrates 70% of global bitcoin trading volume
–> China holds 50% of the global mining power
–> 20 bitcoin companies are based in China. Among them, 3 of the world’s largest exchanges.
–> More than 80% of bitcoin transactions take place in Chinese Yuan.
–> Increasing investments in the bitcoin, blockchain & financial technology sectors will accelerate developments in the APAC region. Only in 2015, the fintech sector received $3.5 billion during the first three trimesters. Some of those companies are actively incorporating bitcoin and/or blockchain technology into their operations.
[#4] Governments starting to shape adequate environments while studying/evaluating best approach towards innovation adoption
Singapore prime minister and Chinese authorities have publicly recognized bitcoin and blockchain technology as a new reality and innovation landscape that represents a big opportunity to their country’s future development.
[#5] Internet accessibility still presenting challenges. Nevertheless, largest internet user bases are Asians:
–> Internet regional overview
–> China leads with 667+ million users having access to internet connectivity.
–> In december 2015, India scaled positions and now has the second largest internet user base. Mobile phones are user’s preferred browsing device.
–> Asia’s internet broadband and mobile speed. Some countries have performed considerable progress, while others are lagging behind.
Ulterior States An IamSatoshi Production A Film By Tomer Kantor http://www.iamsatoshi.com/ulterior-states-documentary
The story from the film creator, The participatory development, production and post ‘guerilla-film-making-methods’, bounce between (non-academic) literature research, video interviews and studio sessions.
This investigative process allowed having real-life conversations with some thought leaders within the Bitcoin ecosystem. In an attempt to portray the community behind the message to adopt a network, being a one-man team allowed for easier access to the subjects. The enthusiasm and commitment that saturate through the lens in many parts of the film, expose how the adopters of Bitcoin want to explore, to probe and, to show the world, something important, otherwise overlooked.
Remittances are a hot industry to focus on for companies and startups in the block chain tech and finTech sectors.
Previously in 2013, a press release published by the World Bank stated that global remittances represented a $550 billion dollars industry, with India and China receiving $131 billion (see graph below).
The same article stated that by year 2016 we could expect a record number in remittances, registering a flow of $707 billion.
This year (2015), the Goldman Sach’s Investment Research Report part III – “The Socialization of Finance” featured that:
– According to the World Bank, there is an estimated roughly $550bn sent internationally in 2014. We estimate the fees generated by banks and other money transfer platforms to be roughly $30bn, or roughly 6% of the total principal amount. –
We expect block chain companies to be able to offer lower fees and faster transfer with solutions that are easily accessible to everybody. These must not rely entirely on having a smart phone or fast internet connectivity since that equals (in most cases) to a relatively high entry cost for many people in the developing countries.