Crypto enthusiast and venture capitalist Tim Draper, who made headlines across the crypto world when he purchased the Silk Road bitcoins from the US Marshals has made the most bullish crypto and Bitcoin forecasts in history. He is calling for the crypto market cap to hit USD 80 trillion within 15 years, which implies a price per Bitcoin of USD 2 million or more.
The previous record holder for the most bullish Bitcoin forecast is John McAfee, who says Bitcoin will hit USD 1 million by 2020. He combined that prediction with an extremely aggressive bet.
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
— John McAfee (@officialmcafee) November 29, 2017
Draper says in regards to crypto, “The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here. I think it’s going to have such a transformative effect on industries that we never even imagined would be transformable. The internet went after industries that were 10-100 billion USD markets, cryptocurrency will go after trillion USD markets – these are finance, healthcare and insurance, banking and investment banking, and governments”.
Basically, Draper is saying cryptocurrency will replace fiat currency, which is in agreement with numerous crypto experts. The total amount of bank notes, i.e. cash, in the world is USD 7.6 trillion, and the total amount of cash plus checking accounts, narrow money, is USD 36.8 trillion. The total amount of broad money, which is narrow money plus savings accounts, time deposits, and money markets is USD 90.4 trillion. Therefore, if the crypto market cap hits USD 80 trillion like Tim Draper says, it means crypto will be the dominant global currency and hold practically all of the money in the world.
In the event of a fiat currency collapse, and the replacement of fiat currency with crypto, a crypto market cap in terms of fiat won’t make sense anymore. If crypto hits USD 80 trillion like Draper says, fiat currencies will be so worthless that crypto’s market cap couldn’t be defined in terms of fiat anymore.
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