Crypto Market Size Could Reach $40 Trillion
Pantera Capital CEO Dan Morehead recently stated that the cryptocurrency market could some day be worth $40 trillion. Considering the fiat-based gross world GDP is estimated to be around $80-$100 trillion and that the current crypto market size is well below $0.5 trillion, this seems a bit unrealistic at the moment. However, let’s see why the cryptocurrency hedge fund founder thinks that the digital currency market will grow so large.
Speaking to Bloomberg, Morehead remarked:
“Obviously, we’re very bullish on the space. We think we’re way below, maybe an order of magnitude — or two — below the real fundamental fair value of blockchain…the industry as a whole is $400 billion. It easily could go to $4 trillion, and $40 trillion is definitely possible.”
In support of his statements above, the Pantera Capital founder pointed out that the current crypto market size of $400 billion is likely to draw the attention of many more investors and businesses.
10,000 Percent Increase
If you do the math, Morehead’s prediction would mean that the crypto market would have to grow by an astronomical 10,000 percent from its current size of roughly $400 billion to $40 trillion. So, this really does sound outrageous and maybe even ridiculous. Also based on these numbers, Bitcoin (BTC) price would reach $1 million, assuming the market share distribution remains the way it is right now.
While this extremely bullish outlook might be unrealistic, there are some solid signs that the crypto economy is beginning to mature. Notably, the Binance cryptocurrency exchange recorded $200 million in profits for first quarter 2018. Meanwhile, Deutsche bank, Germany’s largest financial institution netted profits of only $146 million for Q1 2018. Based on this stat alone, one could argue that the crypto market and economy is showing signs of real growth.
Bitcoin and Crypto World Reach Important Milestone
As most people who follow the crypto space would know, Bitcoin started from nothing – meaning it was worth nothing. In fact, we have all heard the story of some guy foolishly buying pizza with 10,000 Bitcoins. Now though, the 17th millionth of the total 21 million Bitcoins that will ever exist was mined yesterday, based on data from Blockchain.info.
Ansel Lindner, bitcoin advocate and investor, commented:
“It’s an event that makes the market more aware of the scarcity of bitcoin. It will eventually turn into higher prices.”
Despite numerous crackdowns from regulatory authorities around the world, Bitcoin and the rest of the crypto market have shown a lot of resilience and the crypto community has been persevering. Although it would still be far-fetched to think that cryptocurrencies would replace the trillion-dollar fiat financial system, it would now be quite reasonable to argue that cryptos will definitely have their place in the world’s evolving fintech and digital economy.