Raoul Pal, a macroeconomics expert, has dubbed cryptocurrency the fastest growing asset class in human history and forecasts colossal development for the markets by 2030.
Pal said in a recent interview with Scott Melker that many of the cryptocurrency initiatives generating buzz and enthusiasm would fail to gain acceptance, which he believes is natural.
“What we’re seeing is the market recognizing that it’s no longer sufficient to be a quicker, cheaper alternative to Ethereum – or whatever it is – that is more private than Bitcoin. What people are beginning to notice, and I have had talks with folks at the protocol layer about, ‘Okay, what can this chain be recognized for?’
I believe that people will segment into use cases. Therefore, if you’re really quick, not too decentralised, and extremely inexpensive, you’re extremely beneficial to the securities sector, which has tremendous volume and doesn’t worry as much about decentralisation as private money does…
There is still plenty of room for such a large quantity of tokens. Obviously, most of this will never get network acceptance, which is OK. It’s similar to a venture capital portfolio in that you accept that a number of these organizations will fail to get momentum, and that’s OK.”
While many initiatives fail in the near term, Pal believes the crypto markets will have an unprecedented adoption curve over the next seven years.
According to the CEO of Real Vision, cryptocurrency markets might grow 100x from present levels and achieve a market capitalization of $200 trillion, even if there are some difficult years along the way.
“Digital assets already have 300 million active users globally. In essence, it is rising at a rate of 185 percent [each year]. By the end of this year, we’ll have surpassed 600 million, let’s say 750 million. Even if this year is sluggish, we will reach 500 million. The next year, it will be a billion. The next year, it will be two billion. The next year – four billion.
The rate at which this is occurring is beyond comprehension. And I believe that the migration from the $2 trillion asset class that exists now to the $200 trillion asset class that [Jeff Dorman] is referring to will occur by the end of the decade.
It is the fastest-growing asset class in recorded history. The greatest rate of technological adoption in human history. And it will be the most rapid production of riches in human history. That is the case. We all get lost in the day-to-day market fluctuations and yell at one another about, you know, Cardano vs whatever. And it’s just noise — pure noise.
Because you’re seeing the largest and quickest secular trend any of us will ever encounter. And we can take part. We are not required to be venture capitalists. We do not have to be wealthy people with access. You just need to get active.” At the time of writing, the overall market capitalization of cryptocurrency is $1.9 trillion.
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