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The total number of cryptocurrency users is currently running into millions, however, the adoption level is not close to the number projected by Raoul Pal.
Raoul Pal, a Bitcoin proponent, seasoned economist, and former hedge fund manager with Goldman Sachs Group Inc (NYSE: GS) has predicted that the market cap of the global digital currency industry is poised to hit $250 trillion (100x) by the end of this decade. Raoul made this forecast while speaking on the Bankless Brasil podcast, noting that “there’s a reasonable chance” the projection could come to pass if the current crypto adoption model continues.
Now the Chief Executive Officer of Real Vision, a crypto investment and education platform, Raoul Pal drew comparisons between traditional investment markets and the digital currency ecosystem. He noted that the current benchmarks of other markets and asset classes such as equities, bonds, and real estate all have a market cap between “$250-$350 trillion.”
“If I look at the total derivatives market, it’s $1 quadrillion. I think there’s a reasonable chance of this being a $250 trillion asset class, which is 100X from here, which would be the largest growth of any asset class in all of history in the shortest period of time,” adding, “That will pretty much dovetail in with the idea that 3.5 billion people are using it – that’s just extrapolating the growth numbers of the network. So if [there are] 3.5 billion users in 2030, well the market cap’s going to be something like $250 trillion.”
The total number of cryptocurrency users is currently running into millions, however, the adoption level is not close to the number projected by Raoul. The veteran investor said that while the projection is outrightly ambitious, the number of crypto holders will not skyrocket to that level without breaks and resistances.
Bitcoin and Crypto Market Cap: Fundamental Factors Capable of Fueling Growth
Many of the retail and institution investors that are backing crypto innovations today are doing it mostly on their own volitions. Since digital currencies are not being regulated in many countries of the world, there is an automatic cap to the level of adoption and the number of investors that can embrace the new form of money.
This brings the pioneering effort that El Salvador is pulling to mind. With the Central American nation legalizing Bitcoin for transactions, every citizen in the country can hold, and transact with BTC without falling under the wrath of the law. Attaining 3.5 billion users for digital currencies can be achieved at a very fast pace should more countries trail El Salvador’s path in legalizing Bitcoin for transactions.
The new crop of blockchain protocols today is pioneering a switch to enterprise adoption, as well as use cases that can fuel increased adoption of digital currencies and tokens. The emergence of decentralized finance (DeFi) innovations is also one great factor that can drive the increased usage of cryptocurrencies.
In all, blockchain and crypto have a long way to go, and continuous innovation and development are sure to take the industry to such limelight as is being predicted by Raoul Pal and other pundits.