Raoul Pal Declared That Crypto Are Growing Far Faster Than the Internet
According to macroeconomic analyst Raoul Pal, crypto assets are increasing at a far quicker rate than the internet.
The inventor of Real Vision and Worldwide Macro Investor claims to have spent much time and effort updating his statistics on global crypto usage — and the results are evident.
“2021 was a year of accelerated growth, demonstrating the Reed’s Law impact of networks atop networks producing even more exponentiality. However, six years after the first five million users, cryptocurrency now has 295 million participants, compared to the internet’s 119 million.
Cryptocurrency is increasing at a rate of 137 percent every year, whereas the internet has grown at a rate of 76 percent. As I constantly say, this is the world’s quickest adoption of technology in history.”
Pal’s updated statistics are based on data from Crypto.com, the World Bank, and Global Macro Investor.
He asserts that even if the crypto economy grows at the same rate as the internet, the business is on track to reach an astounding five billion users by 2030.
“Using the 76 percent growth rate (which implies a near halving of network expansion as networks mature), we may now reach 5 billion users by 2030.
That is, it becomes THE dominating source for worldwide ownership, transfer, and recording of value and contractual conditions. Wow!”
Pal also claims to have created a reliable method for determining the worth of a certain crypto network by multiplying the daily dollar amount of transactions by the number of active users.
Pal claims that his equation accurately predicts the market capitalizations of Bitcoin and Ethereum, as well as XRP and Polkadot (DOT).
According to Pal, Ethereum (ETH) may someday outperform Bitcoin in terms of market capitalization if its decentralised application environment is extensively embraced.
“Each chain generates value for a different reason — BTC generates value as pure collateral, security, and a store of wealth by attracting a large number of users moving significant quantities of money. As a result, it is the world’s most valuable network.
However, ETH has a broader range of uses and the transaction value per monthly user is comparable to that of BTC. Thus, if ETH gains more users over time, it will eventually surpass BTC in market capitalization (which is irrelevant since we are comparing apples to oranges! Both are valuable/useful in their own ways).”
Pal also provides precise price forecasts for Bitcoin based on projected rates of adoption. “Assuming BTC maintains a standard deviation below trend, a price objective of $600,000 is possible.” If it slows to two standard deviations below trend, a figure of roughly $300,000 is obtained.
Perhaps the regression trend should begin in 2013 in order to prevent the really early increase. As a result, growth will be slower and objectives will be lower. This results in a trend of $700,000, one standard deviation [above] $350,000, and two standard deviations [above] $200,000.”
Pal asserts that NFT networks may exhibit similar growth patterns, and the important indicator of a crypto network’s sustainability is its ability to move huge sums of cash between an expanding number of members on a regular basis.