Is the Cryptocurrency Market Dead?

It would be interesting to see the date of your question, but I see Quora found it useful to hide such details. Anyway, as of today, the total market capitalization of the cryptocurrency market is $140 billion while the market cap of Bitcoin alone is $71 billion, trading slightly above $4,100 as of March 16, 2019.

Well, $140 billion – let’s see:

– The global market size of augmented reality (AR) and virtual reality (VR) as of 2019 is estimated at around $20 billion.

Cryptocurrency Market

Is the market dead considering its size is only $20 billion? Actually, no – as you can see, it is estimated that the AR/VR industry will hit almost $200 billion by 2022. It means that this market will grow by about 10 times in only three years!

What about big data? This is one of the fastest growing and most innovative industries, with giant tech companies like Google, Amazon, and Facebook trying to benefit from the huge inflow of information from users in an attempt to generate behavioral patterns and adjust the ads accordingly. And it’s not only that – big data has many other use cases beyond ads. So, recent 2019 projections showed that the global size of the big data market was estimated at about $50 billion.

Cryptocurrency Market

$50 billion for such a huge and important market that is driving how the information is handled today? Yes – and the crypto space is almost three times larger than that.

The crypto market is larger than the artificial intelligence industry at the moment – why would one think the market is dead?

It is true, in December 2017, the total market cap of the crypto market was over $800 billion, and it felt like the $1 trillion figure was very close. However, we all know what has happened since then – Bitcoin and the rest of digital currencies have matured and stabilized, not before the bubble they formed burst.

In December 2018, a year after Bitcoin hit its record level at $20,000, Bloomberg reported with satisfaction that the Bitcoin bubble had just popped. Author Noah Smith stated:

“It seems like every asset bubble has a famous anecdote of someone claiming, right at the top, that a crash is impossible. In the stock-market bubble leading up to the Great Depression, it was economist Irving Fisher, who declared in the New York Times that stocks “have reached what looks like a permanently high plateau” a few days before a collapse that would see stocks lose 89 percent of their value.”

https://www.bloomberg.com/opinion/articles/2018-12-11/yep-bitcoin-was-a-bubble-and-it-popped

When it comes to Bitcoin, the confident comment was made by John McAfee, who said during the peaks that it was impossible for BTC to be a bubble because it involved the “new mathematics of blockchain.”

Yet the bubble burst indeed – does it mean the crypto market is dead? The same Bloomberg article goes on:

“Does that mean Bitcoin is dead? Not necessarily — the cryptocurrency has recovered from several previous bubbles and crashes, including one in 2011 that was just about as devastating.”

I would say the crypto market is still developing, with many central banks announcing national cryptocurrencies in the next few years. The market is not dead – it will be adopted at the highest level. Do you know that JPMorgan recently launched a form of blockchain-based coin? It’s not really a decentralized cryptocurrency, but still – they call it that way. The crypto adoption is only at its nascent stage. In fact, this is the future of money. The market is not dead – it is making the first steps of a baby.




SUBSCRIBE FOR NEW UPDATES




Tags :

Leave Your Comment

Leave a Reply