Will Cryptocurrency Become a $10 Trillion Dollar Market?
2017 has truly been the year of Bitcoin, with the world’s first decentralized digital currency setting new all time highs, busting through $10,000 and just falling short of $20,000.
The entire market capitalization of the cryptocurrency industry surpassed $500 billion. Will we see $20,000 Bitcoin in 2018? It is certainly possible, but what about the market as a whole?
There are several hundred actively traded cryptocurrencies besides Bitcoin. These tokens/coins are commonly referred to as “alt-coins”. Many of these alt-coins experienced epic gains over the second half of 2017, with several experiencing several hundred percent gains.
What does 2018 have in store for cryptocurrency?
Many analysts are predicting 2018 to be “The year of cryptocurrency”. The excitement around digital assets and blockchain technologies is not dying down anytime soon.
Many analysts are predicting Bitcoin’s price rise will continue over 2018, with several bold calls of prices ranging from $20,000 – $100,000.
It is difficult to forecast the market as a whole but after reaching a $500 billion market cap in 2017, the path to $1 Trillion seems clearer. But what about $10 trillion dollars?
According to RBC Capital Markets analysts Mitch Steves and Amit Daryanani, they see a $10 trillion dollar market cap for the industry in the long term.
“Longer term, we think cryptocurrencies are here to stay and will likely become a large market (our long-term estimate for the cryptocurrency space is in the $10 Trillion dollar range versus ~ $500B today).” source
To put that in perspective, that would be a 20xs increase of the current $500 billion market cap. If you aren’t familiar with market capitalization, read our article that breaks it all down here.
Now before you go out and tell your friends cryptocurrency is going to be a $10 trillion dollar market in 2018, here are few things to keep in mind..
Neither analyst gave a specific timeline for the road to $10 trillion, however based off other research it is likely it would be forecasted into the early 2020s.
It is very difficult to forecast future growth, especially in markets that are as volatile as cryptocurrency. This projection is based on their research, however, there are varying opinions and projections throughout the industry. However, if the excitement and momentum experienced in 2017 was any indication of what to expect in 2018 and beyond, crypto will have a bright future!