Bitcoin and other cryptocurrencies could be worth trillions

Bitcoin and Other Cryptocurrencies Could Be Worth Trillions

Albert Wenger, a partner at Union Square Ventures, told CNBC that although he believes the recent bitcoin price surge has been fueled by “irrational exuberance,” he also anticipates that the total cryptocurrency market cap will ultimately rise past the trillion-dollar mark.

“So I believe there’s a good chance that cryptocurrencies taken together as a bucket will be worth trillions of dollars. We are a long way from that,” Wenger said during the interview on Thursday.
Union Square Ventures has built a reputation as one of the top performing venture capital firms, and it has made a billion-dollar exit every year since 2011. Over the past several years, the firm has invested in a variety of companies within the blockchain space, including bitcoin exchange Coinbase, crypto hedge fund Polychain Capital, and Protocol Labs, the creator of $257 million decentralized storage project Filecoin.

‘Bubble’ Could Just Be the First Blip in Sustained Advance

Wenger stated that although it is possible the bitcoin price is currently in a bubble — he says it’s too soon to tell — it is also quite probable that the recent uptrend is just the first ripple of an impending storm.

“So the way I look at this (cryptocurrencies) is when we look back at it from far in the future, it will be a very massive run up. The current run up could turn out to be a blip on that chart,” Wenger said, “once you reach the territory we are in today, there’s definitely a way for it to go down. And there’s definitely also a path in the future where, cryptocurrency as a whole will be worth trillions of dollars.”
On Monday, the cryptocurrency market cap crossed the $300 billion threshold for the first time. Two days later, it briefly rose to an all-time high of $345 billion before intense market volatility caused it to take a more than $65 billion hit the following day. By Friday, however, the markets had recovered to $329 billion.

Consequently, the markets still have a long way to go before they reach Wenger’s target. Even a $1 trillion valuation would necessitate that the cryptocurrency market cap triple from its current level. Assuming that all cryptocurrencies rose in proportion to their current levels, this advance would shoot the bitcoin price above $33,000 and the ethereum price close to $1,500.

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