Total Revenue Of Crypto Exchanges Could Hit $4 Billion By The End Of 2018 - Report
According to a report by Sanford C. Bernstein & Co. analysts and quoted by Bloomberg, the total revenue generated by crypto exchanges could more than double in 2018, going from $1.8 billion (2017 level) up to $4 billion at the end of 2018.
I knew exchanges are highly profitable businesses. The rise of Binance and other mature players in this area proved that the niche is crystalizing and is becoming more stable. But, to be honest, I didn't expect the numbers to be that high. $4 billion in revenue is huge. And this is coming mainly from commissions.
As the crypto markets are becoming more mainstream, I expect this trend to fade, to be honest.
The reason? All crypto assets can be traded in decentralized exchanges, which is more or less OTC (over the counter) in traditional trading lingo. A decentralized exchange will not have any commissions and the transaction will be transparent between the parties involved. Think of how it works in Steem Market, which is, I think, the perfect example of a decentralized exchange (no middle man, plenty of liquidity and instant transactions).
But what would be the incentive for somebody to run such a tool? If you can be part of a business that generates $4 billion a year, why would you ruin it by building something that gets zero commissions? And the questions can also be reversed: why the current centralized exchanges will allow something like this to happen, if it will hurt their current business upfront?
The answer is very simple; because it's in the DNA of the crypto economics to eliminate the middle man. Bitcoin appeared as an alternative to banks, and it created a decentralized ledger.. That's how it all started, folks.
And although they are less strict than banks, centralized exchanges are becoming more and more the middle man in this business.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Maybe by the end of the beginning of the next year :-) this will happen' ... who knows ... we'll see :-)
Regards and thanks for sharing this great blog
$4 billion is a huge amount as you mentioned. If it reaches to that level, then can we expect the value of steem to be at the end of 2018 ? Any predictions ?
i think 2 to 3 usd. not sure
Will steemor sbd ever hit 5-10 $ just like few months before ?
not possible untill btc up trend will not start.
That's a sad part. Let's be positive. Thanks for reply.
Most of altcoins depend to btc price. If btc go up then they all go up same time.
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Had to read it twice to fully grasp it, that's a huge sum, i also think there is no end to this middle man exchange thing.
everyone is predicting about btc but all opinion is different everyone calculation is very different, some youtuber predict after watching news and some make charts etc... i am in the very serious confusion who is wrong and who is right. 😖
4 billion $ is a huge amount mate!
I think i should open exchange :P
Btw btc fall 150 dollar in just 5 seconds.
Crypto might be in downtrend but its certainly shows that its booming and going mainstream
Increase in 2.2 billion dollar in a year will be great going. The best thing about the block chain is no involement of middle man a transparent system. Hopefully the impact created on common people will swallowed the old fiat system
4 billion $ is a very huge amount rate...i think end of this year rate of bitcoin is so good... Thanks for sharing.
Good news bro upvote and comment back in my post https://steemit.com/all/@teachyou/bitcoin-explained