Crypto Market Cap of $80 trillion in 15 years: Tim Draper
Tim Draper, a venture capitalist known for his insights about the cryptocurrency industry, has predicted that the total market capitalization of the crypto market will rise to $80 trillion in the coming 15 years, according to a report Asian news outlet DealStreetAsia on Friday.
Tim Draper justified the decline of the market in the past few months by stating that it was because people were too set in their traditional ways. Because of this, they have not adopted cryptocurrencies as a distinct and reliable asset class. Speaking at the DealStreetAsia PE-VC Summit 2018 held in Singapore, Draper addressed the familiarity problem with any new technology, especially blockchain, and hailed its transformative approach saying:
“I think it’s going to have such a transformative effect on industries that we never even imagined would be transformable. The internet went after industries that were $10–100 billion dollar markets, cryptocurrency will go after trillion dollar markets — these are finance, healthcare and insurance, banking and investment banking, and governments.”
Earlier in the year, financial magazine Barron’s reported that the Russell 3000 Index (RUA), which tracks the performance of the 3000 biggest U.S.- traded stocks representing 98% of the market, was worth $30 trillion. This market capitalization followed a successful 2017, which saw a staggering 22% returns.
Tim Draper also compared the cryptocurrency market with another revolutionary technological innovation which drove the market into an utter frenzy, the Internet, stating:
“The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here (with Bitcoin).”
This comparison has been echoed by many. Brian Kelly of CNBC’s Fast Money compared cryptocurrency to the “Internet of the 1980s”, but highlighted the fact that Bitcoin is still in its fledgling stages. Kelly admitted that he overshot his expectation of the technology when he had initially compared it to the Internet of 1995. In his opinion, a better comparison is further back, and stated:
“I think this technology is going to work, it’s going to be game-changing, but it’s very early days, so we can have this massive volatility.”
Currently, the market capitalization of the entire cryptocurrency market stands at $201.4 billion, with Bitcoin accounting for 55.8% while Ethereum’s share was 10.8%, data from CoinMarketCap showed.
Image via Google
Join our Telegram group