New Delhi: In a recent podcast, Raoul Pal, a former Goldman Sachs hedge fund manager and CEO of Real Vision, suggested that global crypto market capitalization could increase 100 times by the end of this decade.
The figure, Pal said, could grow to around $250 trillion from $2-2.1 trillion as of today if the crypto network adoption models continue on their current trajectory.
If that happens, then cryptocurrency will become the asset class to log the fastest growth in the shortest period of time. Other asset classes, such as equities, bonds and real estate, all have a market cap between $250–$350 trillion.
Backing his argument, Pal said if the user base of cryptocurrencies hits the 3.5 billion mark by 2030, then the market cap will reach around $250 trillion.
This theory is possible, based on a lot of things going right for the industry, said Vikram Subburaj-Co-Founder and CEO of Giottus Cryptocurrency Exchange. “This will require support from most governments and top institutions.”
Crypto can grow in adoption and become a part of billions of lives where every transaction, including payments, are done through blockchain technology, he added.
Edul Patel, CEO and Co-founder of Mudrex, said he will not be surprised if this unfathomable number turns into a reality.
“Cryptos with multiple use cases are gaining massive adoption and are going big. A wild upswing from current levels should not be surprising given a rapid rise in institutional investments in cryptos over the past few years,” he added.
However, no asset class can rise in a linear trajectory. The market cap of the digital asset class has taken a hit of 20-25 per cent from its all-time peak level and is barely holding above the $2 trillion mark.
Market experts believe that crypto adoption could rise exponentially, with the asset class likely to give better returns over the next 10 years compared to gold and equities.
“Cryptocurrency and blockchain have the potential to streamline multiple industries starting from financial services, supply chain management to media industry,” Patel said.
A more modest and grounded expectation for the industry will be to become an alternative asset class that every investor considers as a part of his portfolio and allocates an increasing share to, suggested Subburaj.
However, industry trackers said investors must pick fundamentally sound coins and not just follow the latest fad.
Many hyped coins today might not remain in existence by the end of the decade, Patel warned. Backing the new age asset class, he said crypto adds a much-needed diversification and alpha-generating potential to any portfolio.
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