Major investors and fund managers predict bitcoin network value to hit $1-5 trillion in the next 5-10 years. And there’s mounting evidence that they’re right.
With major cryptomarkets like Ethereum and Bitcoin barely making a blip off of the retest baselines that began in August, most outsiders see stagnancy- but institutional investors and experts see something entirely different. With lower pressure to sell among the industry’s biggest players, and a growing interest in retail investors scooping up newly freed liquidity, the equilibrium that the coin has seemed to have reached isn’t a deterrent, but instead, a portent of good things to come.
Cryptocurrency exchange platforms like Bitvavo those specifically designed to help guide new investors in understanding the market say they’re seeing more new users than ever, despite the recent bad press the coin has gotten. The stability of the market in light of recently reported hacks and scandals regarding some major players shows that the coin may be maturing- as few have lost faith in the bullish optimism they have in the coin. This is just one of the many reasons that experienced investors see good things in crypto’s future, predicting a market value of over a trillion dollars in the coming decade.
Bitcoin Builds Markets:
As possible reasoning behind why these latest scandals aren’t affecting investor opinion may be because the market has flourished to the point where one bad apple doesn’t spoil the bunch. Bitcoin, blockchain, and other crypto technologies have set themselves up to capture any number of markets- becoming a driving force behind what makes the world tick.
For starters, the centralized banking industry is a quadrillion dollar market currently. What does this have to do with bitcoin? As the market stands now, everyone’s favorite cryptocurrency is set to capture a minimum of 10% of that market, and should the coin continue to function as seamlessly as it has in previous years, it’s financial structure savvy and borderless currency paradigm could easily capture far more. Which could scale the network value to a trillion dollars all on its own. Both bitcoin and ethereum have already set their sights on keeping paces with transaction volume and value with some of the biggest names in the financial industry.
Should protocol changes continue the upward trajectory of scalability, transaction fees should become more easily achievable than those set forth by legacy institutions. Which would only serve to funnel continued interest into the crypto space.
Retail and Institutional Interest Remains Firm:
Outside of discussing futures, both institutional and retail investors have a continued interest in bitcoin adoption, with over 100 billion users currently. As Decentralized Financial sectors build, investment vehicles diversify, and crypto captures interest as a global currency alternative, this widespread adoption is only set to continue growing.
Bitcoin has also become a reliable choice to protect other assets. Not just as a risk-mitigation in portfolios, but also as a hedge to devalued national currencies. As seen with the current hyperinflation in Argentina. The coin can also provide a space safe from arbitrary seizures. Or offer a more realistic and inexpensive way of transferring money across borders, which as global and online economies expand, becomes ever more important to the average citizen and their families.
Which is another reason why future prediction remain so bullish, as cryptocurrencies offer a safe-haven asset for all investors, not just institutional money. Trends seem to suggest that a wider variety of investors choose to put their money toward crypto and DeFi, even at this nascent stage. Should development continue at its current pace, the market could reasonably see enough adoption to make it the preferred system of the financial future.
Fiat Continues to Fail:
While the bitcoin market and decentralized finance development continue to grow at a stunning rate, fiat continues to lose favor with many. Political instability coupled with the current economic crisis presented by covid-19 presents its own flavour of chaos. One that many investors, both old and new, find unpalatable.
Serving only to strengthen the need and popularity for decentralized financial institutions and options. Currently, the coin represents a higher trading volume than both Google and Netflix, and has outperformed many legacy stocks this year. With this base trajectory and a developmental future that looks bright, this is one of the biggest indicators that could see bitcoin’s network reach the trillion-dollar range. While total adoption of crypto as a global currency standard may never happen, it’s likely that the market will at least approach something similar. Particularly as it has already shown promise and stability in the wake of the current pandemic. Correlating well with other historical safe haven assets.
Disclaimer: This is a paid post and should not be considered as news/advice.