Binance CEO Changpeng Zhao, who goes by CZ, said cryptocurrencies still have room to grow by more than 1000 times in the coming years as leading coins like bitcoin and Ethereum gain mainstream adoption.
According to CCN, CZ’s remarks were in response to recent comments by Ethereum Co-Founder Vitalik Buterin, who suggested that the exaggerated valuations of cryptocurrencies had played out and there would be no more opportunity for 1000-times growth in crypto prices.
CZ went on to comment on another one of Buterin’s assertions, which was that it’s unrealistic for the crypto market to expand from $200 billion to $200 trillion, which would reflect the equivalent of 70% percent of global wealth.
“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,” exclaimed CZ.
The Binance chief also explained that a thousandfold increase in price could only be considered an unrealistic goal if it were judged on the basis of the traditional size of the market. This would imply that the cryptocurrency market would have to go beyond the traditional financial market.
“You also can’t use traditional market size to measure potential for new technologies or industries. If you used (and people have) [the] taxi market size to estimate Uber’s potential, you would be off by quite a bit,” CZ added.
Imagining a $200 Trillion Market Cap in Crypto
If the crypto market were to boast a market cap of $200 trillion, it’s safe to say that cryptocurrencies would take the crown as the primary payment method, as CCN noted. Consumers all over the globe would use crypto on credit cards and also as cash. The wealthy would tuck their vast crypto riches into offshore accounts and banks would abandon fiat currency.
The ambitious expectations of CZ and other investors that this nascent market can compete with fiduciary currencies requires many decades of experimental integration and adoption before cryptocurrencies will hit the mainstream.
Cryptocurrencies One Year Ago
Last year, the cryptocurrency market saw its most explosive annual growth rate ever. Prices of leading coins such as Bitcoin, Ethereum, Ripple and Bitcoin Cash increase 30- to 500-times over a 12-month period.
Countries such as Japan and South Korea, which represent leading crypto markets, have demonstrated levels of never-before-seen speculation and interest. This led bitcoin to surpass $24,000 on some exchanges of the world.