Binance CEO Zhao Assures That Crypto Market Will Grow 1000x and More
The mercurial market of cryptocurrency has been divided among bulls and bears. While Ethereum co-creator Vitalik Buterin expressed the unlikeliness of Cryptocurrencies prices to see 1,000-fold gains in the future, the CEO of Binance, Changpeng Zhao, challenges him claiming that the market will grow by more than a thousand times in the years to come.
Buterin recently put words to the thoughts of many investors, when he stated that the blockchain(cryptocurrency) sector as an industry could grow by a thousand-fold but expecting the same for the prices of cryptocurrencies is a bit unrealistic. He said:
“The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.”
Well!! CZ Beg to Differ
Changpeng Zhao, commonly recognized as CZ, differs from the aforementioned statement and believes that cryptocurrencies still have a lot of scope for growth and may grow by more than a thousand times in the years to come. A similar sentiment was essayed by billionaire investor Tim Draper, who claims that bitcoin and cryptocurrencies will become an $80trillion business within 15 years.
The cryptocurrency sector has seen its most explosive yearly growth rate to date in 2017, major cryptocurrencies like Bitcoin, Ethereum, Ripple, and Bitcoin Cash increased by 30 to 500-fold within a 12-month period. The exponential growth rate led to a lot of attention, which attributed to cryptocurrencies being introduced to the mainstream for the first time.
Unprecedented levels of speculation and interest were observed by major markets like Japan and South Korea, which pushed the Bitcoin price to surpass $24,000 in the cryptocurrency exchange market of South Korea. The rapid increase halted as 2018 stepped in and since then there has been a steady decline.
Buterin’s inference is based upon the volatility and the current valuation of the market. Accordingly, he states that expecting that the market will jump from $200 billion to $200 trillion is definitely unrealistic goals. As this entails assuming cryptocurrencies would take over reserve currencies and operate as the world’s primary method of payment.
While Buterin arguments seem to be valid, CZ stakes his bet on the other side of the story. He argues that the cryptocurrency market can still “absolutely” grow by a thousandfold in the long-term, as major cryptocurrencies like Bitcoin and Ethereum reach mainstream adoption. CZ said: He stated:
“I still disagree with this. I will say ‘crypto will absolutely grow 1000x and more!’ Just reaching USD market cap will give it close to 1000x, (that’s just one currency with severely restricted use case), and the derivatives market is so much bigger.”
CZ supplied evidence to his argument by stating that a thousand-fold increase in price can only be an unrealistic target if it is evaluated based on the traditional market size, implying that the cryptocurrency market could surpass the traditional finance market. He added:
“You also can’t use traditional market size to measure potential for new technologies or industries. If you used (and people have) taxi market size to estimate Uber’s potential, you would be off by quite a bit.”
A $200 Trillion Market Cap?
A $200 Trillion market cap implies that cryptocurrencies will widely be accepted and utilized as the main source of payment. Most Merchants all over the world will accept digital tokens over credit cards and cash. Wealthy individuals would hold trillions of dollars in cryptocurrencies over offshore bank accounts, and the banks would no longer operate on top of fiat but on cryptocurrencies.
To make that a reality, crypto still has a long way to go, decades of experimental integration and mainstream adoption is required. A 1,000-fold return from the current price is highly unlikely. But, many investors believe it is possible, and CZ is one of them.
The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.” Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.