While the creation of Bitcoin has given rise to an entire cryptocurrency and blockchains industry used by people around the world, this nascent market is still small.
As Mati Greenspan, founder of Quantum Economics and former senior analyst at eToro recently reported. The total market capitalization of all digital assets is $205 billion. While this may seem like a great deal on a personal level, Greenspan said the global stock market is valued at $82.2 billion. Which is 40,000% higher than the cryptocurrency.
This is the question: can Bitcoin begin to invade the share market share? If so, how and why?
Bitcoin to grow long term?
Bitcoin already has an incredible past decade, so to speak, an increase of thousands of percent from the “IPO”.
However, some say that price appreciation is just beginning. According to previous news reports, earlier this year. Xapo’s chief executive, Wences Casares, launched an exhaustive essay entitled “The case of a small allocation for Bitcoin.”
In this essay, long-time Bitcoin adopters, who are part of the PayPal and Libra board. Stated that there is a 20% chance of failure from the point of view of Bitcoins, citing the fact that it is an experiment. He is more than 50% sure that the cryptocurrency will succeed beyond our wildest dreams. He sees the fact that BTC has existed for 10 years (basically) with zero interruptions / irreversible concerns. And is a case of the rapidly growing Bitcoin user base and active transactions.
Casares says that if Bitcoin succeeds, its price could be much higher than it is now: $1 million, 140 times more than current prices.
For some approaches, $1 million of Bitcoin would be equivalent to $18 billion of market capitalization for BTC alone. Which still means that it will be smaller than global shares (25%), but still of significant size.
While it is not clear what will drive this growth decisively, there are several theories.
One of the main theories is that the system surrounding Fiat’s money will begin to collapse on its own in the coming decades, triggering a process called ” hyperbitcoinzation .”
Deutsche Bank, the 17th largest asset bank in the world, recognized this in a recent research report. Deutsche Bank strategist Jim Reid wrote, according to Bloomberg. There are potential risk factors in the “current Fiat system,” which he said was “fragile” before adding that it could “be resolved in the 2020s,” That could open traditional finance.
Reid said that if this happens, “there will be a violent reaction against money and the demand for alternative currencies, such as gold or cryptocurrencies”. The Deutsche Bank analyst observed high levels of dollars, particularly in the 1970s. Because gold prices jumped.