Hello guys. Let's discuss about the superior limit that the crypto currency market can reach in terms of capital.
We almost got close to 1 Trillion dollars, yet, how many trillions can the Market be worth?
There are multiple types of money in the world, such as:
M0 &
M2 - are the coins and notes in circulation and other money equivalents that are easily convertible into cash
M2 includes
M1 and represents short-term time deposits in banks and 24-hour money market funds
M3 includes
M2 plus longer-term time deposits and money market funds with more than 24-hour maturity
M4 includes
M3 plus other deposits
M1 - 2.5 trillions USD
M2 - 10.5 trillions USD
M3 -
As for money owed by every single person and country in the world, the grand total is $215 trillion.
How far can the Crypto Market go? Where will it stop? What's your opinion on this?
First, You are putting together cryptocoins and cryptoassets.
Second, You are relating a concept that is Market Cap, which could be linked to shares or securities to fiat monetary masses.
These measures are used to establish the monetary policy of nations (or economic areas in the case of the Euro). This concept is not applicable in the case of most cryptocurrencies since the supply is not managed, but simply set by founder. I admit there is a certain possibility of managing the currency mass and rate of issuance by means of forks, but has nothing to do with monetary masses.
Regarding the money owed, by definition is the same as the money that is pending to be received, as the debt is with someone or something. I don´t think there is a comparable measure or concept in cryptos.
To make it simpler: It would be better to compare with the global market cap of all the shares and securities in the world.