Here’s the deal….
It’s easy to forget how small of a market it really still is and how few people know about it.
Right now, the total market cap of the cryptos are oscillating above and below $100 billion. In the world of asset classes, this is still very small.
Just to give you a little idea, in the world of stocks, there are 60 major stock exchanges in the world, with a total value of roughly $70 trillion. The NYSE alone is larger than 50 of the smallest exchanges.
The U.S. bond market is worth roughly $40 trillion.
The physical gold market is valued at around $7 trillion.
All the cryptocurrencies combined add up to a paltry $100 billion. And to be fair, at the start of the year — THIS YEAR, I’ll emphasize — we were looking at only $20 billion.
I want today’s message to be very simple: a $100 billion market cap is nothing.
We are now past the point of no return. The mark that Bitcoin and the rest of the cryptos have made on the world is indelible.
It’s now a question as to how much this asset class will go on to be worth.
Apple has cash on its balance sheet that’s double the cryptocurrency market cap.
Before, when cryptocurrency was an even more nebulous idea, its trajectory was not fully understood. Now we know it IS THE FUTURE.
Here is what is inevitable: institutional money will become a much larger part of the picture, and WHEN we see this, we can guarantee that the market cap of cryptocurrencies will go into the trillions of dollars. When you are talking about millions and billions of dollars trading, liquidity is going to be key, and the current size of the crypto market is still too small.
So either the cryptocurrency market stays too small for institutional money to enter or it’s going to grow by 10-50 times in the next 5-10 years. I believe in a day where cryptocurrency will be ubiquitous.
It is very conceivable to see cryptocurrencies at a market cap of $5 trillion, but even at $1 trillion, that is a growth factor of 10, and we could see that sooner than most people imagine simply because of the injection of institutional money.
Crypto is to money what Airbnb is to hotels, Uber is to taxis, and what Netflix is to cable companies.
An increasing number of investors and traders have begun to recognize Bitcoin as a long-term investment, store of value, and settlement network, rather than as a short-term investment.
It’s a revolution. Having said that, there has never been a revolution that wasn’t bloody.
Change is scary. It always is. Back in the 1800s, 80% of the American workforce used to be in agriculture. Imagine telling the people of the day that the workforce was going to shrink to only 2%. But technology and human resilience have filled the gaps. It’s understanding that humans have been at turning points in history before, and the important takeaway is to be on the thriving side of that coin and not be a wagon surrounded by a sea of automobiles.
Right now, it’s the government and central banks that are behind the curve, and the money that they have used to artificially control the market is fading and being overwhelmed by free market solutions. Bitcoin is that competitor.
Every revolution in history has been bloody, and this one won’t be any different. In my opinion, the massive bubble burst will be in the altcoin space, while the current top cryptos will see volatile corrections.
The fact is that these have moved hard and fast, and corrections in the space can be expected to be just as violent.
www.BestCryptoGuide.com – Bitcoin For Beginners