#Trader: #Crypto Can Reach Trillion Market Cap Based on Speculation Alone
During an interview with Ran Neuner on CNBC’s Crypto Trader, Coinbase alum and crypto investment firm 1Confirmation founder Nick Tomaino stated that the valuation of the crypto market can reach a trillion dollars off of speculation alone.
He said: “I see investing and speculating as adoption. I think it is possible that crypto gets from $200 billion to several trillion on just that [speculation]. From my perspective, what I’m seeing globally in terms of viewing this new investable asset class I think that’s possible.” In 2017, crypto mania initiated by individual investors and retail traders led the market to achieve a valuation of over $800 billion and with the entrance of institutional investors, a multi-trillion market cap could materialize.
Important Macro Trend: Shifting From Authorities to Trustless Alternatives
According to Tomaino, an important macro trend that could lead to an influx of investors and capital into cryptocurrencies or consensus currencies is the decline in trust towards governments and large institutions like banks.
Various studies conducted by Facebook Research and major technology conglomerates have shown a clear trend of millennials shifting from legacy systems to innovative and trustless alternatives such as fintech applications.
In the long-term, he explained that a cultural and gradual shift from trusting large institutions to peer-to-peer systems could direct consumers to decentralized financial networks. “My view is that the most important macro trend of our lifetime is people increasingly distrusting governments and large institutions. I see it more as kind of a gradual movement into crypto, I think it’s kind of a gradual and cultural shift from people trusting large institutions and governments to using the blockchain.” Currently, the cryptocurrency market is growing exponentially in terms of infrastructure, adoption, and institutionalization.
The structure of blockchain networks are seeing progress in scalability, stability, and security, fueled by active open-source #developer #communities and #ecosystems.