How much growth potential is there in the cryptocurrency market?

The crypto market could soar to new all-time highs if assets such as pension funds and trust funds are injected.

The $2 trillion valuation is huge compared to the size of the cryptocurrency market a few years ago, and there still seems to be plenty of room for growth today. Trillions of dollars in pension funds, trust funds and brokerage accounts do not have access to the cryptocurrency market, and once these funds are invested, the crypto market could soar to new all-time highs.

How much growth potential is there in the cryptocurrency market?

In the past two years, the cryptocurrency market has risen in valuation from around $100 billion to over $2.5 trillion, a dramatic increase never before seen in history. The 2,500% rise in less than two years has also left many investors wary of future price potential.

How much growth potential is there in the cryptocurrency market?

Currently, the only way to buy cryptocurrencies is through exchanges like Coinbase, Binance and Kraken. Even though there are trusts like Grayscale’s Bitcoin and Ether Trust or Bitwise’s 10 Crypto Index Fund, they come with high premiums, sometimes as high as 100%. This means that if someone wants to buy $100 of Ether through one of these trusts, they need to pay about $200. Therefore, for any investor who values their money, the main way to buy cryptocurrencies is through an exchange.

How much growth potential is there in the cryptocurrency market?

The average retail investor may have no problem creating a Coinbase account and buying $100 in bitcoin, but for multi-billion dollar institutions and hedge funds, using Coinbase is simply not an option due to regulatory, risk and custody difficulties. Instead, they prefer to invest in exchange-traded funds (ETFs), which use bitcoin as their primary asset and trade on traditional stock exchanges like NASDAQ. Ideally, this would also protect against hacking and other black swan events.

There are no cryptocurrency ETFs for U.S. investors yet, but it is highly likely that future investors will buy cryptocurrencies through a Charles Schwab or Fidelity account. Cryptocurrency trading on traditional exchanges will be a huge opportunity for the market, as trillions of dollars will now be able to flood into this asset class.

How much growth potential is there in the cryptocurrency market?

For example, there are currently $50 trillion in retirement funds and $33 in annual revenue for Fortune 500 companies. If these funds and companies had access to cryptocurrencies and wanted to invest a conservative 10% of their holdings and revenues in this asset, that would be $8 trillion, more than four times the current valuation of the entire market.

How much growth potential is there in the cryptocurrency market?

A growing market cap will not only increase the value of cryptocurrencies, it will further legitimize them and allow for larger investors to participate. When Bitcoin was only worth $10 million, it was seen as an interesting internet experiment. When it reached $1 billion, it started to look like an interesting investment, but no one could invest more than a few million dollars without a significant price adjustment. When it exceeds $1 trillion, investors and companies around the world see it as the future of cryptocurrency and can buy and sell billions of dollars without price fluctuations. If Bitcoin reaches $10 trillion, it will likely become the world’s reserve currency, which will allow companies and funds to more comfortably invest hundreds of billions of dollars in this asset, boosting its growth and thus further legitimizing its status.

How much growth potential is there in the cryptocurrency market?

While there is no guarantee that large foundations will buy cryptocurrencies, they are certainly interested, which is why there are a number of cryptocurrency ETF applications awaiting SEC approval. Even the most conservative investments would be a huge signal that institutions want to put cryptocurrencies into their holdings, and given enough time, the market value of cryptocurrencies could easily quadruple, triple or quadruple. It is uncertain when cryptocurrencies will begin to be traded on traditional markets, but it is considered inevitable that it will usher in a new era in the history of digital assets.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-much-growth-potential-is-there-in-the-cryptocurrency-market/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-30 19:30
Next 2021-05-30 19:35

Related articles