24.10.2021

Ethereum: what will the cryptocurrency market be like in the coming years?

Raul Paul, CEO of Research and Consulting at Global Macro Investor, posted a series of interesting tweets. In them, he suggested that Bitcoin, Ethereum and other cryptocurrencies could absorb “trillions of dollars” from traditional markets.

He also made a rather controversial statement – the capitalization of Ethereum in the future will allegedly be able to bypass the similar indicator of Bitcoin, that is, in the rating of cryptocurrencies, ETH will be in first place in the overall rating of cryptocurrencies. Let us tell you what other thoughts the expert shared.

What will happen to cryptocurrencies in the future

Here is one of the expert’s tweets in which he voiced his view on the future of the cryptocurrency market. The cue is from Decrypt.

If Bitcoin is a flawless digital collateral, the size of the global government bond market is $ 123 trillion. This is a pretty amazing opportunity for Bitcoin. The global safe assets system is $ 23 trillion. This amount will end up in bitcoins and more likely in ETH.

That is, the analyst assumes that large investments will flow into cryptocurrency from other industries. Note that this is not the first time such statements have been made. In particular, on the eve of the representatives of the world famous bank JPMorgan suggested that BTC has enough potential to outstrip gold in terms of market capitalization. Moreover, this process is already taking place. And it is accelerating the growth of the bitcoin rate, which has almost doubled in recent months. Naturally, such indicators attract the attention of investors and make them think about diversifying their own portfolio.

Bitcoin price chart in 2020

The levels of settlement and derivatives markets in financial markets are $ 4 quadrillion and $ 1.2 quadrillion per year, respectively. Likewise, there are hundreds of trillions of dollars in stocks, global debt markets and other areas. Even if a small part of this money ends up in the cryptocurrency industry, Bitcoin will face a bull run of an unprecedented scale.

Paul continues.

This is why I am concerned about the entire digital asset space. There will be many winning investments, many failures, many frauds, many false expectations, but in the end, trillions and trillions of token, protocol and cryptocurrency capitalization will accumulate.

Accordingly, Raoul also has no doubts about the continuation of the current growth trend of the cryptocurrency market. This means that next year we will have even more high-profile investments in BTC and other cryptocurrencies. Recall that the last major investment in Bitcoin was the purchase of coins for $ 100 million by an insurance company from Massachusetts called MassMutual. Through the investment, the company’s management wants to “impact the growing economic dimension of our digital world.”

Cryptocurrencies

Paul argues that the main focus of the public is on Bitcoin, but the cryptocurrency industry is much broader.

The future is a super-network of blockchains, the most primordial of which is Bitcoin, and the risk curve is shifting from there. Any other prediction that relies on only one winner in the cryptocurrency race is nothing more than false hopes and dreams.

That is, here he hints that Bitcoin will not remain the leader of the industry forever. Since the technical characteristics of BTC by the type of the same throughput are noticeably lagging behind modern projects, it is quite easy to believe in this.

Paul also did not ignore the second largest cryptocurrency in terms of capitalization: in his opinion, Ethereum has every chance to bypass Bitcoin in the ratings of digital assets. We can agree here, because Vitalik Buterin’s project still has many opportunities to please its investors with its rapid growth in the coming years. One of the main reasons is the successful launch of the major Ethereum 2.0 upgrade.

Finally, we note that Paul backs up his words with actions: he recently announced that he was converting almost all of his liquid assets into crypto. Namely, Bitcoin and Ethereum in an 80/20 ratio.

We believe that Raoul Paul’s statements deserve attention: after all, the investor not only talks about cryptocurrencies in theory, but also actively invests money in them. Perhaps, for now, it will not be possible to get ahead of Bitcoin due to its popularity among institutions, but in the future there is still a similar prospect. Therefore, further development of the coin industry awaits us and even a possible struggle for leadership in the entire niche.

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