Market Cap of Crypto Goes From $60 Billion to $600 Billion in Two Months
The total market capitalization of the cryptocurrency market has gone from $60 billion in September 2017 to over $600 billion in December 2017.
That makes cryptocurrency’s market capitalization (that is coins in circulation times the price of a coin for each coin) larger than most of the world’s top corporations.
That is impressive.
It is very unlikely that the trajectory will be a straight path upwards, but given the trends so far one could see the market cap increasing over time.
The reality is, buying Bitcoin and other cryptocurrencies isn’t the easiest thing in the world to wrap your head around. Much like setting up a Facebook, Twitter, or Netflix account, it is all doable for the average person, but its going to take months to a year or two for those would-be crypto users to really catch on, feel comfortable, figure it all out, and to get to the point where they are checking their Coinbase obsessively and not sleeping (half joking).
This is to say, wow!.. but its likely not the last wow we will utter in the crypto space.
What is the potential market cap of the cryptocurrency market: Logically given this news we might ask ourselves, “what is the potential market cap for the crypto space?” It is hard to give answer to that, but looking to the size of the top companies in the world is one reasonable thing to look at (and thus we might answer based on that “somewhere around what we are at now”). However, if we instead look to the market cap of a specific market, like the banking market or tech market, we now have a different metric on our hands. I won’t throw around numbers like the market cap of the top 10 banks… but you get the idea. The current market cap seems reasonable in retrospect (even most people didn’t see it coming), yet it is clear that there is more room for new users to participate in the crypto economy. If more people participate, then the market cap is likely to grow, if the market cap grows, that means new coins were created or that current coins rose in value. Put that together, and there are countless conclusions you could draw. One conclusion is that can be drawn however, is that there is in theory still room for the crypto market to grow.