Tim Draper, an American venture capital investor recently predicted the overall cryptocurrency market capitalization to reach $80 trillion in next 15 years, according to a DealStreetAsia report released on September14. The prediction was made during the DealStreetAsia PE-VC Summit 2018 that was held in Singapore.
Should this prediction come to fruition, this would undoubtedly provide financial-market approval of cryptocurrency stocks. The recent slide in total crypto market capitalization, is believed to be caused by newer and lesser familiar entrants into the cryptocurrency market. There are still large chunks of people who have yet to realize the potential of cryptocurrency, as an asset class. Draper is of the view that empowering people about cryptocurrencies and its potential as an asset class, would boost the total crypto market capitalization in the coming years.
“The technology has the potential to transform industries globally”, added Draper. He supported this statement by citing the example of the Internet. Draper said that after the successful adoption of the internet, its market grew from $10 to $100 billion. Similarly, the cryptocurrency market cap is expected to grow by $80 trillion in the next 15 years. The technology would touch all industries across the globe – healthcare, finance, banking, insurance, governments and more, emphasized draper.
Draper supporting the prediction compared the growth of cryptocurrency with other currencies. However, he emphasized more on comparing the growth of crypto market with that of the internet. At the summit, he said that the deployment of the internet was somewhat similar to that of cryptocurrency. Draper added that just like the internet, Bitcoin deployment will first reach a maximum point, and then it would crash with the demand of something bigger than the Bitcoin. In short, after the complete adoption of cryptocurrency, there will be a time when the demand would be of something that is better than it is. It is then, when the crypto market will reach its peak.
Draper is confident of the ability of cryptocurrency to transform the way businesses are conducted today. However, it is too early to comment anything concrete, said Draper. The market for cryptocurrency is defiantly like to change the way transactions are carried out at the present, it will take some time for industries and business to understand the potential of the technology. Until then the crypto market is likely to experience a mixed reaction from the users.
The total crypto market capitalization as of now is $202 billion, according to a report by CoinMarketCap. Tim Draper, who is a renowned venture capital investor and founder of Draper Fisher Jurvetson that were founded in 1985 is also the founder of Draper Associates and Draper University. Draper is closely studying cryptocurrency market as it is assumed that the cryptocurrency would replace the traditional currency in the future and will come out as the global currency. Many countries are in the process of rafting regulation for cryptocurrency to empower people about its potential. Many people have already started investing in it and many more are likely to invest in the coming future in the digital money.