"It is likely that crypto assets such as bitcoin will emerge as their own asset class and thus, have the potential to develop into an interesting investment and diversification instrument. Bitcoin itself could over time assume a similar role as gold."
Those words come from Federal Reserve Bank (St. Louis);
If the Bitcoin assumes the market of Gold, that itself would put bitcoin at 8 Trillion dollar market, a 48X from its current market cap (even at $9000 per coin).
Here is the deal though.
Bitcoin's use cases far exceed that of just a 'reserve' such as gold. We also argue that Bitcoin is better than gold in many aspects, but that is a topic for another day.
Crypto has the ability to play the role of 'reserve' as well as the currency itself. Gold doesn't have this ability.
Cryptos are creating a market of their own in the business, technology and finance. No one knows what this new market will be worth in a decade from now.
"RBC Capital Markets estimates the blockchain ecosystem could be worth up to $10 trillion within the next 10 to 15 years." That is blockchain ecosystem itself. Some of these emerging projects will rely/leverage bitcoin system which will put added demand to the bitcoin itself.
When the traditional markets start crashing - big financial institutes will start playing cryptos as alternative investment to hedge the risk from traditional markets. The current value of global stock market is about $90 Trillion dollars. Even if we add 1% of that value to bitcoin in the coming decade, that adds over 5 times value to the existing marketcap of bitcoin alone. This is not even considering bitcoin as 'gold' reserve.
Dice it however you wish, it looks like cryptos are set on an upward trajectory in the coming decade, although not all cryptos will have the fortune of being alive in 10 years, but those that do will have a bright future. And bitcoin is going to carry the torch for the whole space.
Note: We are putting together a list of 5 coins for the next decade which we think have a great potential. This list is FREE to access for our subscribers. Consider subscribing before the list comes out in April.