How much do you think the crypto industry will be worth in a decade? Many have made varying predictions, with some being quite bold such as John McAfee who recently predicted that Bitcoin’s price by 2020 would stand at one million dollars and Consensys co-founder Andrew Keys who earlier this year predicted that the market would be worth one trillion dollars by the end of 2018. However, perhaps none has been as bold as Tim Draper who recently predicted that the crypto industry would be worth $80 trillion in 15 years’ time. The beloved Silicon Valley venture capitalist who has invested in multi-billion dollar startups stated that while at first the market may experience a slump, it will rise again and there will be no stopping it.
The $80 Trillion Industry
Tim Draper has been one of the most vocal investors in cryptos and blockchain startups. Having found great success investing in startups such as Skype, Baidu and Tesla, Draper has in the past five years invested greatly in cryptos and according to him, the industry is going to hit $80 trillion in 15 years. Speaking at the DealStreetAsia PE-VC Summit 2018 held in Singapore, Draper stated that the market will first subside before it starts rising again, and this time it won’t stop short of $80 trillion.
As reported by DealStreetAsia, Draper compares the crypto industry to the early days of the internet.
“The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here with bitcoin
However, while the internet disrupted industries that were worth tens and in some cases hundreds of billions, the crypto and blockchain technology will disrupt trillion dollar markets such as finance and banking, insurance, governance and healthcare.
The current volatility in the market is because people are not yet accustomed to cryptos and the technology behind them, he stated. According to the billionaire, the crypto market could see more losses before the mainstream use of cryptos takes root.
At $80 trillion, the crypto market would dominate the global financial system, being larger than the world’s 60 major exchanges combined. As reported by Visual Capitalist, the 60 major global exchanges have a combined value of $69 trillion, with the New York Stock Exchange leading the pack at $20 trillion. At the current 55 percent domination that Bitcoin enjoys, it would be worth $44 trillion, effectively making one bitcoin $4.6 million.
Draper grabbed headlines in 2014 when he purchased 30,000 bitcoins from the U.S government for an estimated $19 million. The bitcoins had been seized by the government from the online marketplace, Silk Road, after it was shut down following allegations of facilitating illegal activity.
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