Hi Traders! Today we want to share with you some very positive point of view regarding crypto in general. As it is more frequently said, especially in the finance world, cryptocurrencies are becoming considered as a new class of assets. Class asset? What is that you may think? Here is the explanation.
All money invested in many ways can be divided into a couple of groups which differ from each other. We can invest money into commodities which are crude, oil, gold, silver etc. This is just one asset type (class). Money can also be invested in real estate – commercial properties, housing, agricultural land. This is another class. We can distinguish a couple of more asset classes such as stock exchange, global money supply, global debt market and finally derivatives. We are planning to prepare the whole set of analysis “ What If” describing each asset separately. Here is just the introduction to give you the general idea. More details will be provided in the forthcoming analyzes.
So today we want to make a hypothesis with money which comes from stock exchange worldwide. We think this type of asset is widely known and don’t need a detailed description. According to before mentioned visualization current stock exchange all over the world are worth $73 trillion, with the US dominance at the level of 38%. So this is a lot of money but this is not the biggest part of the cake yet. The global money is estimated at $1200 – 1800 trillion. Anyway, stocks are shares. They are quite risky and volatile. This game resembles game on the crypto market but of course, it is more stable, regulated and predictable. Of course, shares and cryptocurrencies are not the same but the way people sell and buy them is similar. Let’s imagine cryptocurrencies market get to be fed with 10% of that money. This is $7.3 trillion. This is s massive amount of money. This is quite a conservative approach as we think in 20/30/40 years-time there will be no stock exchanges and shares. There will be only crypto exchanges and cryptocurrencies. But let stay only with 10%. The current dominance of the BTC is at the level of 52%. It means we could expect to have a $3.7 trillion money inflow only into BTC. Current capitalization of BTC is 111 billion USD. This is 33 times more. What does it mean? It means 1 BTC would be worth over $210 000. Of course, we have to take into account that within a couple of years time we will have slightly more BTC but also some coins can be lost. We added just a small amount of the global money into crypto and here is the result. This is a massive amount of money. Our simulation assumes that only 0,25% of the global money is into the whole cryptocurrencies market.
We think such approach is a TRUE GAME CHANGER! No one should ever doubt why cryptocurrencies will be massive one day.
Let’s do the same math with ETH now. A dominance of ETH is currently almost 11%. It means money inflow at the level of $800 billion. This is 37 times more than current capitalization which would make the ETH price at $7800. This is more than the actual price of BTC right now. Once again we are aware of ETH problems right now and they have a couple of issues to solve but we think they will manage to do it in the near future.
So, guys, this is a well-calculated vision of the future. First of all crypto exchanges have to be regulated. This is the mile stone right now. When such a price might be in range? A minimum couple of years but maybe 2 maybe 5. We don’t know it. No one knows.
So Guys! What do you think of such an approach? Do you have any other estimations? Please do share with us your thoughts.
Thank you for your interest! You are really great!