How big will cryptocurrency get?
This is a question that many want to know. While none of us have a crystal ball, we can take some projections based upon trends into account.
Cathie Wood runs one of the most aggressive funds on Wall Street when it comes to investing in technology. The firm takes large positions in companies it believes will be disruption. This means that it has crossed paths with cryptocurrency.
Wood is a noted bitcoin supporter. Her fund invested heavily in Grayscale. It also is optimistic about Coinbase since it is one of the few exchanges in the United States.
Here firm spends its time looking for massive opportunities. For this reason, cryptocurrency is on its radar and in a big way.
How Big Will Cryptocurrency Get?
Wood is very optimistic about the future of cryptocurrency.
She the market capitalization will hit $25 trillion by 2030. It is sitting around $1.0 trillion at this moment. This is a 25x for the entire market.
Is this realistic?
We have to keep in mind we are still a long way from 2030. Also, there is a lot happening that could push things in that direction.
Wood believes that one stimulant could be the approval of a Bitcoin ETF based upon the spot price. This could pull in a lot of retail investors buying out of retirement accounts without the "hassle" of dealing with keys. Of course, Wall Street is positioning itself to act as a custodian for these people.
Another is the idea that institutions are going to start to put bitcoin, along with some other cryptocurrency, on their balance sheet. It is a viewpoint mirrored by many bitcoin proponents. Michael Saylor also believes corporations will have part of their reserve on their books.
Certainly these actions could provide helpful in moving the total market cap higher.
New Additions
To me, the potential is much bigger than even Weod is expecting. That said, we have to differentiate.
One of the keys to this is the tokenization of other assets. This is definitely something that I feel is going to happen at some point. Here is where we could see tens of trillions entering the market.
When this happens, it is going to enhance all that is here. The blockchains that are in operation will find even more value as other services are built on top.
Looking at the market caps of things such as gold, real estate, private equity, and other sectors, we can see some of that tokenized. That will end up being part of the overall market capitalization.
Another factor is the financial services which are built. A lot of value will be developed by those assets which are deemed to be strong collateral. This also could amount to tens of trillions of dollars.
Of course, if we consider this to be separate from "cryptocurrency" and fall under digital assets, then Wood might be correct.
Either way, it is safe to say that cryptocurrency is destined for much larger numbers.
