Binance CEO Zhao: Crypto Market Will ‘Absolutely’ Grow 1000x and MoresteemCreated with Sketch.

in tekyboy •  6 years ago 
Advertisement

Changpeng Zhao, the CEO of Binance better recognized as CZ, has said that crypto still has room to grow by more than a thousand times in the years to come.

Earlier this week, as CCN reported, Ethereum co-creator Vitalik Buterin stated that while the cryptocurrency sector as an industry can grow by a thousand-fold, it is unrealistic to expect the price of cryptocurrencies to see 1,000-fold gains in the future.

“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,” he said.

CZ Believes Otherwise

In 2017, the cryptocurrency sector has seen its most explosive yearly growth rate to date, as major cryptocurrencies like Bitcoin, Ethereum, Ripple, and Bitcoin Cash increased by 30 to 500-fold within a 12-month period.

The industry experienced such an exponential rate of growth in a period in which cryptocurrencies were being introduced to the mainstream for the first time. Major markets like Japan and South Korea demonstrated unprecedented levels of speculation and interest, which ultimately led the Bitcoin price to surpass $24,000 in the cryptocurrency exchange market of South Korea.

ethereum creator vitalik buterin
Ethereum founder believes the days of 1000x crypto market growth are long gone. Vitalik Buterin | Source: TechCrunch/Flickr

Buterin stated that based on the current valuation of the market, it is not realistic to expect the valuation of the crypto market to increase from $200 billion to $200 trillion, which is equivalent to 70 percent of today’s global wealth, as that assumes cryptocurrencies would take over reserve currencies and operate as the world’s primary method of payment.

Still, CZ argued that the cryptocurrency market can still “absolutely” grow by a thousand fold in the long-term, as major cryptocurrencies like Bitcoin and Ethereum reach mainstream adoption.

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.”

Furthermore, CZ explained that a thousand-fold increase in price can be portrayed as an unrealistic target if it is evaluated based on the traditional market size, implying that the cryptocurrency market could surpass the traditional finance market.

C“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,” he added.

What Would $200 Trillion Market Cap Look Like?

At $200 trillion, cryptocurrencies would be utilized as the main source of payment. Every merchant in the world would be utilizing cryptocurrencies 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.

The confidence of CZ and other investors in the space towards cryptocurrencies and their ability to compete against fiat currencies will require many decades of experimental integration and mainstream adoption to be proven right.

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.

Featured image from YouTube/Piergiorgio Borgogno.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement

Read original article

Posted from our news room : https://news.sye.host/binance-ceo-zhao-crypto-market-will-absolutely-grow-1000x-and-more/
Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

@syeservices, I gave you a vote!
If you follow me, I will also follow you in return!
Enjoy some !popcorn courtesy of @nextgencrypto!

Warning! This user is on my black list, likely as a known plagiarist, spammer or ID thief. Please be cautious with this post!
If you believe this is an error, please chat with us in the #cheetah-appeals channel in our discord.

This user is on the @buildawhale blacklist for one or more of the following reasons:

  • Spam
  • Plagiarism
  • Scam or Fraud