Dear Steemit friends,
2017 is a special year in terms of the attention governments and banks are raising for Bitcoin or cryptocurrencies at all. Shout outs by Jamie Dimon like
"Bitcoin is for murderers, drug dealers, and North Korea."
"Bitcoin is a fraud that will blow up!"
create fear among all market participants! Look at my
two memes
i'd already created a few days ago.That is no accident!
In my opinion it is the fear of banks what is coming in 5 years ahead! Why do i think that? The advantages of Bitcoin and the whole crypto market are not really visible due the tiny market cap in comparison to gold, the S&P 500 and the U. S. dollar currently. Look at the following chart (source data from https://www.fool.com/investing/2017/08/17/how-does-bitcoins-market-cap-stack-up-next-to-gold.aspx)
Bitcoin 2017 in comparison to U. S. dollar, S&P 500, Gold, chart created by author
BUT look at the past. The growth of Bitcoin and the whole crypto market
- from 2013-2016 was +100% per year! and
- from 2013-2017 even a staggering +200%!
- The last year alone was a huge jump of +940%
and many think that has fundamental value because the market did not crash after a month like in the past multiple times. That could be a sign of reaching early majority soon and i think was also the initiator for regulators, banks, government to take action because of the strong momentum!
market cap increase crypto market 2013-2017, chart edited by author based on data coinmarketcap.com
If you extrapolate the exponential growth and..
assume the growth of the crypto market remains at +100%
..(means a correction from now on) which means doubling each year that could lead to the following scenario in 5 years. Assume the following for U.S dollar, S&P500 and gold:
Assuming U.S. Dollar cash amount increase +2% per year
S&P 500 growth rate is about 10% per year since inception in 1928
Gold output is about 3,100 tonnes per year. 1 tonne = 32,000 ounces. Yearly output equals 99.2 million ounces gold. Current price of gold per ounce = $1,320 USD. That are about $131 billion worth of gold per year. Growth rate is about 1.8% per year.
Bitcoin with a market cap over $2 trillion in 2022?
Bitcoin 2022 prediction in comparison to U. S. dollar, S&P 500, Gold, chart created by author
Or the whole Crypto Market with a market cap over 4 trillion in 2022?
.. if we assume Bitcoin holds his share of nearly 50% or maybe Bitcoin with a much smaller market share because other assets and currencies take the lead then..
Crypto Market 2022 prediction in comparison to U. S. dollar, S&P 500, Gold, chart created by author
Is that a prediction of J. P. Morgan in 2022 which called Jamie Dimon to take action?
Crypto Market overtakes U.S. Dollar in 2022 prediction, chart created by author
I think that's what are banks interested in to put it mildly, because if the crypto market has overtaken the U. S. dollar we have a complete different picture of what is Dimon saying today. His loud shouts at interviewers, investors, miners, employees should be considered wisely before someone passes a sentence.
Maybe the U.S. Dollar falls down on the way and is much more destabilized as my chart shows or i'm wrong.
I could be completely wrong. It's possible that Bitcoin has a hard landing and comes never back,..
BUT the blockchain technology, the cryptographic currencies are here to stay.
That's what i believe in whether Bitcoin fades away or not and that's the reason why that evolution will disrupt everything many believe currently in.
Remember, if banks cannot control the money streams anymore they are powerless, if banks are not needed anymore as intermediary as intented by revolutionary Bitcoin idea than they are useless!
What does it mean for J. P. Morgan and all the other market participants.. mmhh quite interesting, don't you think?
A more realistic scenario could be also that the market crashes or corrects and we see the market cap just in 2025 and beyond. But the fact is the snowball is rollin' and is already a snow globe which could be in a few years a avalanche for many sectors.
disruption of the stoneage of current banking and finance system
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see also my other posts
🔥 SECOND "IMPORTANT" CHINA EXCHANGE IS CLOSING SOON! 🔥 WHAT IS THE FUD ALL ABOUT? 🔥
🔥 FIRE IN THE CRYPTO MARKET 🔥 TIME TO BUY? REFLECTING SOME RUMORS 🔥
💰 BITCOIN A FRAUD? - BANKS ARE VERY CONCERNED TODAY - WHAT'S BEHIND? 💰
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