Ethereum co-founder Charles Hoskinson believes that tens of trillions of USD will be entering the cryptocurrency markets eventually. He says the media is repeating a cycle of negative news on Bitcoin and cryptocurrency, but does not take into account that Wall Street and institutional investors are waiting on the sidelines for proper regulation to be put in place. He says that cryptocurrency and blockchain technology “is an entirely new world”.
What's often missed by the cryptocurrency is going to die broken record media is that after the next wave of regulation, wall street is showing up to the party with all their locked up capital. That's tens of trillions of dollars entering the space eventually. Future is bright
— Charles Hoskinson (@IOHK_Charles) June 21, 2018
Institutional investment does have the potential to cause the next major cryptocurrency rally and, considering the magnitude of money that institutional investors hold, the rally could push the market far higher than any previous peak. Currently, the global stock market cap is approaching USD 100 trillion, and there are 28 banks with over USD 1 trillion of assets in the world, so the amount of money Charles Hoskinson speaks of does exist. The question is, will institutional investors feel safe putting large amounts of money into the cryptocurrency market?
According to hedge fund manager Kyle Samani, the final thing holding institutional investors back was proper cryptocurrency custodianship, and now that barrier has been broken. Major cryptocurrency financial services companies Coinbase, BitGo, Nomura, and Xapo are offering legal and secure custodianship that is fitting for institutional investment.
Currently, the total cryptocurrency market cap is USD 254 billion. If Hoskinson is right and the market cap swells to tens of trillions of USD, it is not implausible for Bitcoin to exceed USD 250,000 per coin.
Hoskinson was a co-founder of Ethereum, which is now the second biggest cryptocurrency behind Bitcoin with a market cap of USD 47 billion. Ethereum has become so popular because it was one of the first cryptocurrencies to have smart contracts which facilitate the development of decentralized apps. Charles Hoskinson is also a co-founder of Cardano which is the eighth biggest cryptocurrency with a market cap of USD 3.5 billion. Cardano has similar smart contract characteristics to Ethereum but claims to be more advanced.
Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom
Telegram Alerts from BitcoinNews.com at https://t.me/bconews
Image source: Pixabay
