Tim Draper, an American venture capital investor has predicted that the total market cap of cryptocurrency will hit $80 trillion in 15 years. He said that Bitcoin and cryptocurrencies will temporarily decline but then increase swiftly to become an $80 trillion business in the next 15 years.
Speaking at the DealStreetAsia PE-VC Summit 2018 in Singapore, Draper said that the notable decline in the crypto market in recent days is because of people who have not yet accepted cryptocurrencies as a new asset class. Cryptocurrencies will transform many significant industries worldwide once people become more familiar with the digital currencies.
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).
The manner in which bitcoin is currently fluctuating is similar to that of internet technology a few years back. Tim Draper further said that,
I think it’s going to have such a transformative effect on industries that we never even imagined would be transformable. The internet went after industries that were $10-100 billion dollar markets, cryptocurrency will go after trillion dollar markets – these are finance, healthcare and insurance, banking and investment banking, and governments.
According to DealStreetAsia, Draper has invested in Southeast Asia companies through early-stage venture capital firm Wavemaker, which focuses on investments in B2B and deeptech companies.
Tim Draper’s prediction is based upon regulations. Regulations play a very important role in the cryptocurrency market. There are several factors such as approvals of various sections like SEC and what regulators think. Crypto market tends to react rapidly to any decisions regarding cryptocurrency regulation. US SEC, the securities and exchange commission has temporarily suspended trading in two securities related to cryptocurrencies on Sunday, citing confusion amongst market participants regarding these instruments. The suspended securities are Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF). The suspension is temporary and it started Sunday and will end on Sept. 20.
This is not the first time Tim Draper has predicted about the crypto market. A few days ago, he had said that Bitcoin will hit $250,000 in the year 2022. He had also said that he will not sell his Bitcoin because moving from crypto to fiat is like trading shells for gold. Price-wise, people will continue to see Bitcoin move higher. He had further added that he has revised and calculated that bitcoin will hit $250,000 mark in the year 2022.
Also, the regulations need to be reined in and made clear. The governments of the world are in competition and the best of them are creating very clear and light-touch regulations for crypto.
Tim Draper And Total Market Cap
Since falling from $7,400 to $6,300 on September 6, Bitcoin is now in the $6,500 region. Bitcoin has been fairly stable at $6,500, recording a movement that has allowed tokens to minimize losses against BTC and other major cryptocurrencies. This week (September 8– September 15, 2018) cryptocurrency market capitalization has a fluctuating trend with a commendable rate and as of writing, equaled $203.84 billion (see below figure). On September 8, the total market cap was $192.19 billion. It was decreased by almost 8 billion and on September 13, the market cap was $200.67 billion. Right now, the total market cap is $203.84 billion. According to Coinlib, the following image is showing total market cap:
Total Market Cap
Now, the total volume of the cryptocurrency market is also showing fluctuating behavior. On Sep 8, it was $4.50 B. All of a sudden it was increased and Sep 13 saw the highest volume of cryptocurrency at $5.47 B. Right now, the volume of cryptocurrency is at $4.45 B.
He had also said that cryptocurrencies are the next big technological tectonic shift and governments have to weigh their need to protect investors with their need to be included in this potential economic powerhouse that is crypto. Due to this cryptocurrencies will overtake fiat currencies in the next five to seven years.
According to DealStreetAsia, Tim Draper has also said that he sees good opportunities for bitcoin and blockchain ventures in Indonesia because of the country’s lack of modern banking infrastructure.
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