This week, the community has been actively discussing the future of cryptos. The reason for this new wave of discussion is the position expressed by one of the most well-known experts in the industry, Ethereum co-founder, Vitalik Buterin.
As CoinSpeaker has already reported, according to him, there is no any chances to see “1000x growth in anything in the space anymore” and the market has practically reached its ceiling.
Such a position has been widely criticized by the community but Ethereum creator has commented his point of view explaining what was really meant. “I never said that there is “no room for growth” in the crypto ecosystem. I said there is no room for 1000x price increases”, wrote Vitalik in a series of tweets.
He explained that at the current moment a 1000x increase would equals to $200 trillion and this sum amounts to 70% of the entire wealth that the world has today. Buterin said that it sounds really unrealistic that such a huge part of the world’s wealth will be kept in cryptos.
Nevertheless, there is another point of view in the community. The CEO of Binance, Changpeng Zhao, who is better known as CZ, absolutely disagrees with Buterin. According to him, there is still enough room for cryptocurrencies to increase by more than a thousand times in the long-term. CZ believes that mainstream adoption of major cryptocurrencies like Bitcoin and Ethereum is one of the factors that will support this growth.
Commentin Buterin’s position, Changpeng Zhao said:
“I still disagree with this. I will say ‘crypto will absolutely grow 1000x and more!’ Just reaching USD market cap will give it close to 1000x, (that’s just one currency with severely restricted use case), and the derivatives market is so much bigger.”
According to CZ, a thousand-fold increase in prices can be viewed as something unrealistic if we look at this target from the point of view of the traditional finance market. But at the same time he highlighted that cryptocurrency market has great potential to surpass the traditional market.
“You also can’t use traditional market size to measure potential for new technologies or industries. If you used (and people have) taxi market size to estimate Uber’s potential, you would be off by quite a bit.”
It is believed that in a $200 trillion market conditions, crypto would become the main source of payment and the main direction of investments. But to achieve it, there is still a lot to be done.
Speaking about the near future, we should mention the forecasts made by ConsenSys Capital co-founder Andrew Keys in the beginning of 2018. Like many other experts at the time, he believed that the market would continue to boom and would exceed $2 trillion U.S. dollars by January 1, 2019. But given the current situation, we can say that these predictions have already turned out to remain just predictions.