Bitcoin Forum

January Bubble Wasn’t Really a Bubble
During the interview, which was focused on the economics of the cryptocurrency market, Novogratz was asked by Schatzker about the criticism from skeptics regarding the rapid movement of the valuation of the cryptocurrency market and the bubble-like trend of bitcoin in early 2018.
In response, Novogratz stated that if the January bull rally of bitcoin, Ethereum, and other cryptocurrencies is considered as a bubble, it can be described as the 1996 dot com bubble which occurred prior to the 1999 bubble that led the dot com bubble to reach a valuation of $6 trillion before it crashed to $1 trillion.
Eventually, Novogratz stated that the cryptocurrency market will rebound from its major correction in mid-2018 and surpass previous all-time highs to reach a $20 trillion market valuation. At its peak, the cryptocurrency market was valued at around $900 billion. A $20 trillion valuation would require a 20-fold increase from its previous all-time high.
“[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion,” said Novogratz.
$20 Trillion Will Not be Easy
While Novogratz is often considered as an optimist and a bull investor in the cryptocurrency sector, he has offered evaluation of the cryptocurrency market based on real indicators, statistics, and realistic overview of the industry.
Novogratz emphasized that despite the growing demand from institutional investors for cryptocurrencies, actual investments that have come in from institutional investors have virtually been non-existent, and the most recent bull rally was triggered by retail investors or individual traders.
Many experts including Blocktower founder Ari Paul have noted in the past that the entrance of institutional investors would require stable and robust custodian solutions. Given that many cryptocurrency businesses including Coinbase and conglomerates in the traditional finance sector such as Susquehanna have already started to build custodian solutions, it is likely that institutional investors will enter the market in the mid-term.
“It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors],” explained Novogratz.

Market capitalization of crypto is possible to go to the $20 trillion but this is not easy and need a few years, this is can become reality in 5 or 10 years. Just compare with stock market that was created more than 100 years and the market cap now around $20 trillion.

it is not easy but have chances and this post is positive news for investors, now market situation is red so this type of posts give some positive hopes

yes it is have a chance to get in there, but let talk about how to go to $1 trilion market first, before talk any high number. let see how this market work in Q3 & Q4, if it goes bull run that thing can happen quickly. and if there is no bull run in Q3 or maybe Q4, Im just happy enough if at the end of this years we will get $600B~$700 billion market.

It is possible to reach $20 Trillion Marketcap specially when more investors will come and government will totally accept crypto currencies. For the meantime lets find out what will happen next since right now crypto currencies facing some issues but it will rise again soon. I believed in crypto currencies all this challenges may overcome of the community.


#Support Vanig

Of course it will happen because cryptocurrency is our future but not this year maybe in the next 5years. More big investors will come, big companies will adopt and for sure government will fully accept cryptocurrency as a legal tender.

I agree. That does not and will not happen in a blink of an eye. It will take years for it to stabilize and continuously grow. It is just that the whole market of cryptocurrency right now has a very high variance and it does not have it's boundaries when going up and/or down.

I liken it to what happened with the Nasdaq during the dotcom boom.

If you check out the nasdaq charts over the last 30 odd years you'll see the dotcom boom clearly, but after another ten or so years the nasdaq surpassed the previous highs of that boom and is now around all time highs thanks to companies like amazon.

The trick is finding the next amazon like company for crypto!

This is will be possible if goverment regulated crypto market,  many people interesting in crypto but they afraid because many case about regulation. And when goverment give support for crypto market will make good impact to the community and the market will be bigger because more people will be interesting in to it.

I'm sure it's right under our noses. Let's see: A company that doesn't have bullshit marketing to prop up the price, working on a real problem, has excellent personnel, a nearly ready product...

It's Ambrosus. :)

It depends on what is meant by a "$20 Trillion <USD> Market". 

In the quoted article it means the Market Capitalization of all cryptocurrencies.  Presently, cryptocurrency is a store of value, like a security.  So, this is how most people think about them.

I'm interested in cryptocurrency as medium of payment.  The global economy is about 80 trillion USD per year.  The amount of payments in cryptocurrency is a tiny percentage of this amount.

Cryptocurrency will someday have much more the 20 trillion USD in payments.  I'm not certain how far that day is away.

20 trillion but many developers don't have a clue what to do with their coins.