- Umar Farooq, manager of Onyx and an executive of JP Morgan, recently described the current period of cryptocurrency markets as the similar condition of music streaming service in the 1990s.
- He also claimed that the blockchain and cryptocurrency industry has been developing at a staggering rate surpassing its early stages, and is now a well-established broader ecosystem.
- An analyst of JP Morgan claimed that the technology behind cryptocurrencies would become a majorly important factor for operations related to the finance sector and also that Coinbase would be one of the major benefactors at the time.
According to a JPMorgan official, the markets of cryptocurrencies are standing at a place where the industry of music streaming was back in the 1990s. Umar Farooq, the manager of Onyx, JP Morgan’s digital asset subsidiary, told The Financial News that the cryptocurrency markets are in the Napster era at present. Even before the arrival of much more managed platforms like Spotify or Apple Music, Napster was the first-ever significant peer-to-peer data sharing platform where users shared music.
There had been a service called Napster in the 1990s, which was inconvenient. It was not possible for everybody to access it at the time. Then there’s Apple Music and Spotify, which came along 20 years later. Umar, without Napster, we could not have made it this far. Today, we are living in the age of Napster. Simply put, no one has any idea what Spotify looks like, Far. As a result, he believes that cryptocurrencies are here to reside, it’s just that he doesn’t know how or in what manner.
Development of Cryptocurrencies
Farooq claims that the rate of development in the cryptocurrencies sector is staggering and that the branch of his bank is already observing big swings of interest from clients. Cryptocurrencies, as he claimed, have matured from their Wild West stages and are now a well-established sector with a broad ecosystem.
Farooq says that Bitcoin has already been in existence for just a little over a decade. The first few years were basically just kind of plodding along, but then things began to pick up. People realised that they could construct some more of this. Maybe they can programme this thing, and maybe they would be able to design ecosystems. The concept of decentralised organisation has been established. It’s a Cambrian outburst.
Blockchain Tech Would Be Important for Financial Operations
JPMorgan economist Kenneth Worthington anticipated earlier in the month that cryptocurrency innovation would become more important to financial operations this year and that Coinbase would be among the major benefactors. He further explained that we see Coinbase as a major direct benefactor of cryptocurrency market expansion.