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Crypto & Israeli Technology – The Magic Couple

Crypto and Israeli technology - the magic couple
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Crypto & Israeli Technology – the magic couple: Insights from Israel Crypto Conference in Tel Aviv – May 2022

Crypto and Israeli technology go together like a horse and carriage:

You can’t have none, you can’t just have one, you can’t have one without the other.

The growing popularity of cryptocurrencies is revolutionizing the financial industry and with the rise of bitcoin, cryptocurrencies, blockchain technology and the web3 internet framework, there is no doubt that crypto is taking on an entirely new leap towards standardizing the world of finance as we know it.

Israel, on the other hand, has been recognized as a leading fintech nation, the place that cohesively gathers some of the greatest minds in fintech, including some of the key players in the fintech industry, which makes Israel the perfect partner.

Collectively, crypto and Israeli technology simply make it a magic couple. Crypto stimulates innovation; Israeli technology stems from innovation to drive disruption. Ultimately, such a powerful couple results in disruptive innovation in the crypto space and in the fintech industry as a whole.

With that notion in mind, the ICC – Israel Crypto Community has successfully put together an immersive conference in Tel Aviv earlier this week Israel Crypto Conference 2022, grouping together over 500 attendees, including some of the greatest minds in the crypto, blockchain and web3 worlds.

Image was taken from the event page of the Israel Crypto Conference 2022 on the Israel Crypto Community website

Here are the key insights that I have gained from this conference:

Bitcoin is NOT just another bubble

Bitcoin , and cryptocurrencies, in general, are not a trending buzz. Crypto is being established as the foundation of the future of finance. Therefore, it is adhered to change the future of finance and bridge over the gaps that co-exist in the traditional finance and interoperate between the different platforms such as Defi (Decentralized Finance) and Cefi (Centralized Finance).

The crypto aims to streamline the movement of capital around the world through different platforms. It is conferred to create reliable transportation of the assets between the crypto and traditional financial framework.

However, in order to fully maximize the potential of such a sophisticated framework of crypto, it will require huge investment efforts into standardization, compliance and regulations to maintain a global, scalable framework that is exposed to high volatility and much greater risks.

One cannot ignore the recent drops in the cryptocurrency markets, which evoked the concerns of many as the price of Ethereum and Bitcoin were tanking, following some struggles of TerraUSD (UST), one of the largest stablecoins, crashing its total market value by approximately $14 billion (from $18.5 billion to $4.5 billion).

However, when judging these fluctuations in a broader perspective, crypto is aimed for the long haul as cryptocurrency is by all means a long-term investment that will shape everyone’s future for the better.

As such, the future of cryptocurrency is sure to include plenty more volatility, and experts predict this is all par for the course of establishing crypto as a foundation of the future of finance.

The crypto jungle guide for the perplexed

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Education of the masses is a key success in the crypto revolution. From tokens and blockchains to decentralized finance and NFTs, the world of crypto is vast and rapidly growing every minute.

To get started with understanding the cryptocurrency world, it is highly recommended to start off by reading reliable content that can facilitate the understanding of the cryptocurrency world to the common people and will serve as a strong foundation for their crypto knowledge.

Here are some valuable resources that I found useful for myself when I first delved into the cryptocurrency world.

Proactive & preemptive risk assessment of cryptocurrency

The crypto jungle is a multi-disciplinary and multi-party eco-system. It involves various fundamental frameworks, such as security, exchanges, blockchains, AML, decentralized finance, cryptocurrency coins and many others hot financial topics.

In order to proactively and pre-emptively manage the risk associated with the cryptocurrency world, experts in this space should assume knowledge and gain experience in most (if not all) of these areas.

The fundamental assumption is that in order to build and shape the crypto as a robust framework, it is vital to fully understand both the economics and the ‘tokenomics’ (the economics of the tokenization framework) that will lay the foundation of the cryptocurrency as a robust, scalable and secured framework to serve the growing needs of the financial world.

Consequently, the crypto market has been increasingly tracking the stock market lately and its fluctuation strongly demonstrated an intertwinement with macroeconomic factors that traditionally affect stock markets — like rising inflation, geopolitical crises, and concern over tighter monetary policy by the Fed — are also affecting the crypto markets nowadays and will continue to do so in the future, which is why it is crucial to initiate a comprehensive risk assessment research for every big move of the cryptocurrency that thoroughly examines the impact of both the traditional and the non-traditional factors.

El-Salvador as the first Bitcoin-nation

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Emerging technologies tend to magnetize and attract early-adopters who seek opportunities to solve mega financial problems. El-Salvador seems to be a perfect example for such a scenario as the country has been buying crypto to its citizens to solve the financial deficit of the entire country.

Everyone has heard about the ‘Bitcoin nation’ of El-Salvador. The small country located in Central America with a population of ~6.5 million people that has made its strategic decision to plant the seeds of a potential prosperous financial opportunities by investing in cryptocurrency for the future of its citizens.

The country’s total reserve is up to 2,301 bitcoin, or about $71.7 million at current prices. The country’s decision to lean into bitcoin is not without its skeptics — a contingent that has been gaining momentum in recent months.

Part of El Salvador’s nationwide move into bitcoin also involved launching a national virtual wallet called Chivo that offers no-fee transactions and allows for quick cross-border payments.

For a country where 70% of citizens do not have access to traditional financial services, Chivo is meant to offer a convenient on-ramp for those who have never been a part of the banking system.

The Chivo e-wallet was aimed to facilitate digital means of payment, by helping to “boost financial inclusion.”

Crypto to all – as a mean to bring economic opportunities to all

There are various initiatives that demonstrate the benefits of using cryptocurrencies to solve some of the world’s bigger problems.

A great example is of GoodDollar – a global movement to bring economic opportunity to all.

Since its 2020 debut, GoodDollar (https://www.gooddollar.org/) has made it possible for people all over the world to claim, learn about and use cryptocurrency – at zero cost and zero risk.

With around 500K members and a collective asset of $G 580M (580M GoodDollar), GoodDollar initiative has enabled digital financial services to hundreds of thousands of individuals who were either excluded or underserved by traditional finance.

Click the link below to join the digital currency revolution of GoodDollar: https://www.gooddollar.org/get-gooddollar/

NFT in the Real-Estate world – is it for real?

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Last topic for this review is without any doubt –  the NFT.

NFT (Non-Fungible-Tokens) has created a formidable excitement as it has come to realization with some top rated digital artifacts such as “Bored Ape Yacht Club”, “Mutant Ape Yacht Club”, “Otherdeed for Otherside” and many others.

Yet, the future of finance entails much broader use of NFT in various industries that have just begun exploring the NFT, such as real estate, music, fashion, gaming and retails.

When zooming-in on the real-estate industry, it is absolutely revolutionary the easiness in transferring ownership from one owner to another – a mission that normally takes a length of time in the ‘real world’.

However, the challenge arises when dealing with using NFTs for commercial real estate, as not everything that is working smoothly in the real world is working similarly or working at all, in the digital world.

One example is the value realization of a property. In the real world there is some consensus around the price range of that property, given the location, the size and the condition of the property.

In the digital world, on the other hand, the ‘price’ for the ownership on this digital property is somewhat dubious when comparing to other digital properties in different digital locations.

Conclusion:

My conclusion is that although NFT for digital real estates assets is evolving, in order to fully commercialize NFT for real estate properties, the value of the NFTs needs to be standardized, either by Real Estate Operators that will start creating tokens for real estate assets, which will allow to create a common ground to evaluate the recognizable value of each digital property and trade it with much higher certainty and realization.

About the Author
Eran Fishov is a seasoned startup executive in the Israeli hi-tech space and an enthusiastic explorer of innovative technologies and fintech. Eran focuses on the power of technology to bring disruptive innovation to the fintech world, uncovering common topics in the area of crypto, NFT, blockchain, metaverse, web3 and more.
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