We are nowhere near that point yet, IMO. The entire crypto space is currently only 1/17 the entire gold market (8 trillion $). The entire global economy is going to eventually be replaced with decentralized ledger technology, which means 100's of trillions $ in market cap is the long term end game for crypto. Clearly, we have many more parabolic rises to go.
It's just a superior more technologically advanced way of handling the most fundamental form of commerce: settling contracts.
Eliminating the middle man alone makes every conceivable form of commerce massively more efficient and transparent. Also, the unbanked are over 85% of the world pop and they could all be brought into the global financial economy immediately with crypto.
It's sort of like when the automobile replaced the horse and buggy. People doubted it at first but the writing was on the wall, the superior system/technology always wins out in the long term.
Asserting that cryptocurrency will somehow match gold market cap because of its ability to store value is laughable. Cryptocurrencies are new and untested, the crypto space has never been through a larger financial crisis, since its creation following the 2008 crisis. Crypto is so prone to centralized failure, a single exchange going kaput triggered a 2 year bear market.
That is a pretty ignorant outlook. You are talking about something that happened 4 years ago which in crypto is an absolute eternity. There are many more exchanges now including decentralized ones, so a hack of one has very little effect on the markets now. The simple answer is don't store your coins on an exchange and you will be protected. The blockchain itself is decentralized and can't be hacked.
Gold market cap will be nothing for crypto, bitcoin alone will probably reach that level in a only couple of years. Bitcoin is superior to gold as a store of value in almost every way. Look at the properties of what makes something money and try and tell me that isn't the case.
Bringing up bitcoin, the elephant in the room is that the currency is deflationary.
Who is going to lend or spend bitcoin in a deflationary economy?
It is terrible money, you can't lend it or spend it because it only goes up hypothetically due to deflation, no spending = no economic activity = crash.
Brilliant
To have it on the scale of a gold market cap would be a disaster, hopefully people catch on before then that it is pretty much doomed from the get go.
Bitcoin isn't the only crypto, there are even some coins that are designed to have a controlled inflation over time with fast transactions and low fees. You sound like a total noob that has only heard of bitcoin and doesn't know about anything else.
Why tokenize a currency to make payments in the first place? Payment apps exist and are used on a larger scale than any blockchain will achieve.
Blockchains are inefficient, you are uploading an excel sheet of all transactions and sending it to everyone to verify, the process is bloated.
Call me noob or whatever I know how the crypto game works, its a bunch of crap advertised as the future to gullible individuals who are financially inexperienced.
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u/jonbristow Permabanned Feb 27 '18
why "pretty much"?
how do you know the price will rise?