Cryptocurrency Market Cap Can Exceed $200 Bln by the End of 2017
We’re entering a new stage of the crypto market, where commercial use-cases verge on mass adoption and use-case specific coins popup almost daily.
10 years ago the cryptocurrency market did not exist, Bitcoin had yet to emerge from the mysterious brain of Satoshi Nakamoto, and Ethereum’s founder had just turned 13 years old.
In other words, the crypto market barely existed. Perhaps it was a glint in the eye of Bitcoin’s unknown inventor, but no one else had ever heard of “Blockchain technology”.
The means of creating a decentralized world were completely detached from reality. And yet, the crypto market cap is worth approximately $164.3 bln today.
It is, without a shadow of a doubt, one of the fastest explosions of wealth in human history.
Bitcoin mining produced the first generation of crypto millionaires. Then came the millionaires created through a series of crypto crowd sales, which in turn made Litecoin, Bitcoin, and Ether into legendary investment vehicles.
Now we’re entering a new stage of the crypto market, where commercial use-cases verge on mass adoption, use-case specific coins pop up almost daily, and government regulators complete rules on how cryptocurrencies will be governed.
With that being said, the crypto market cap may exceed $200.0 bln by year’s end.
What’s driving the surge?
Leading the charge for a higher cryptocurrency market cap are Bitcoin, Ethereum, and Ripple.
All of these cryptocurrencies foster an environment of growth, but none more than Ethereum. Its “smart contracts” spawned a generation of new crypto assets that raise money through “initial coin offerings,” or ICOs for short.
Companies or products like Gnosis and Civic, are flush with cash after using this method, although their investors did not gain a share of equity. Instead, the financiers gained rights to transact with the company’s native token, issued to them in exchange for Ether coins.
Now imagine a company’s bank coffers going from goose eggs to $153.0 mln in that time. More to the point, it creates an environment of “hypersonic growth.”
Creators and entrepreneurs are flocking to Ethereum to take part in the ICO revolution, bringing both their talent and intellectual capital.
Some people say this trend could rob venture capitalists (VCs) of their relevance in the startup world. It’s no secret that in 2017, Blockchain companies raised more money through ICOs than VCs.
Everyone is aware that this trend is happening, yet some are reluctant to believe that such a system will yield underlying value. Are they right?