The former Goldman Sachs hedge fund manager Raoul Pal believes the cryptocurrency market capitalization will surge 100 times by the end of the decade.
Currently, cryptocurrency’s total market capitalization is “only” $2.2 trillion. On the Bankless Brazil podcast, Pal said that there is a “good probability” the value will reach about $250 trillion. The criterion is a further expansion of the adoption rate on a national scale.
Pal made a comparison between cryptocurrencies and the stock, bond, and real estate markets, saying that the latter three have a combined market capitalisation of approximately”$250-350 trillion.”
“There is a quadrillion-dollar derivatives industry if I add it all together. A “reasonable probability” exists that it will become an asset class worth $250 trillion, which is 100 times the current value of cryptocurrencies, which would be the most significant increase in any asset class in history within the shortest period” he said. “This is merely an extrapolation of network expansion, which is following the concept that 3.5 billion people utilise it. It is estimated that by 2030, there will be 3.5 billion active users, and the market value would be around $250 trillion.“
However, Pala may have been stunned by the recent declines in BTC and the broader cryptocurrency market. At a December 27 interview, he predicted that bitcoin would have a solid start to 2022.
A few months later, he predicted that the bull market would not expire until June, unlike the prior cycles of 2013 and 2017. He attributed it mainly to the massive infusion of institutional capital in the first quarter of this year.
Read Also: SEC Postponed Its Decision On The Bitcoin ETF Filed By NYDIG
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
- Advertisement -
Comments are closed.