What if Cryptocurrencies reach 1% of the total Capital Markets?
What would that mean for the price of Bitcoin, for Steem?
Exciting to think about, right?
Well that is precisely what independent stock research analyst Ronnie Moas thinks will happen.
He has a great last name by the way...
In stock and trading circles, MOAS is an acronym for Mother Of All Short squeezes...
Now that we know he has got the name, let's take a look a look at what he thinks is coming for Bitcoin and for the entire crypto space.
In a report released yesterday Moas said that he has little doubt that at some point 1% of the money in cash, bonds, stocks, and gold will eventually find it's way into cryptocurrencies.
Currently the crypto market is between $80 and $90 Billion (depending on what day you look at it).
If you take that $80 Billion number, that would mean that the crypto market is currently a 25th of 1 percent of the $200 Trillion in gold, cash, stocks, and bonds.
Which means...
The cryptocurrency market would need to increase by 25x in order to reach his target of 1% of the overall capital markets!
Pretty good return on your investment right?
Now, what happens if cryptos eventually become part of asset allocation models and take 2 to 4 percent of capital markets?
That would mean the entire space would need to increase by 100x in value to reach those percentages of global capital markets.
Those are the kinds of returns I could be sitting on a private island day dreaming about!
To further put things into perspective, check out this chart:
This sounds great and all, but what is the best way to get a piece of it?
According to Moas, he thinks Bitcoin and Ether will be two of the bigger players in the future so you want to own them, but really it is a crap shoot.
For that reason, Moas recommends diversifying amongst some of the bigger and more well known names out there currently.
For example, Moas bought 10 of the 20 largest cryptocurrencies by market cap just in the last couple weeks.
The list can be seen here:
By the way, do you see who happened to make the list at number 20 way down there at the bottom?!
That's right, little ol Steem!
What makes this investment advice interesting from Moas is that he has been giving investment ideas and advice for years, but this is the first time in the last 10-15 years that he has ever actually put his own money to work following his advice.
Which means...
He likely has some pretty strong convictions about this one. ;)
Stay informed my friends!
Sources:
Image Sources:
http://www.wallpaperup.com/678707/BITCOIN_computer_internet_money_coins_poster.html
Follow me: @jrcornel
Thank you for putting up this post! It just gives another boost of positivity into the space. Seeing the growth over the past few months and the potential the crypto has I can see this not only happening but going well beyond that. There are many amazing coins and projects that will change the business functions these days. No need to go far, STEEMIT is a pure example. I am personally diversified between 5 coins that have a very promising future. If only one of them goes 100x then I would be sitting on a very nice profit:).... Good luck and keep on steeming!
Hope to see a 15 to 20 dollars steem price in 2 years.
As far as I'm concerned this is maybe one of the most rational summaries I've read in ages. Totally agree except my list of top bets is slightly differen in weighting. But hey, I'm writing here. I'm passionate and biased!
From the top 20 some will not survive. The potention is there for sure. Upvoted.
That's why you need to diversify
Thanks for sharing!
Well, with all the news lately, I think it's totally possible that this could happen. Bitcoin is being sold officially in Austrian post offices, is legal tender (basically) in a few countries, it just got approved to be traded as basically a stock in the US. Just look how much it went up in the last year. It seems the higher we get, the quicker we snowball so the closer we get to that 1%, the faster we'll gain momentum, assuming nothing happens that kills the crypto space.
I'm still new to all this, so who knows. Just the way I see it from watching the market.
That will definitely happen very soon...It may not even take a year to reach that target, ... sky is the limit for Bitcoin,...,Steem prices to grow.
The Fed printed $39 Trillion dollars to bail out the banks in 2008. Lol, and people call Bitcoin "imaginary."
When cryptos reach 1%, bitcoin will be worth well over $1,000,000 USD each! :)
From a purely investment point of view, should one even put money in the stock market with cryptos having so much potential growth? I started studying investing recently and quickly found myself on Bitcoin and crypto. With the stock market it seems as though I have to make the right picks and even then I have to wait a long time, or start playing with more money looking to capitalize sooner, ie, gambling. With crypto it seems as though I could make a killing investing across the board and just accepting the losses from the coins that fail. Also, if I am just way too far in over my head, please enlighten me to that fact.
You would not be the only one that thinks that way, however, do keep in mind that there are still a lot of pitfalls out there awaiting the crypto market. Regulation could be a crypto killer at some point... it all depends on whether central governments will embrace it, ban it, or create their own...
Right, don't put all your eggs in one basket ;)