Is 100$ Trillion the market cap for Cryptocurrency?
There are over 1350 cryptocurrencies in the market out there and they combined assimilate a value of over 600 billion USD. This is just a round figure and keeps changing every now and then. The volatile nature of digital currency makes it quite unpredictable most of the times. But a lot of market researchers are of the opinion that soon it would reach its cap position.
This is highly a word of prediction. Cryptocurrencies although follow the similar notion of being virtual and having no physical institution, but are still very different from one another. A lot of times you will find one crypto to be completely the opposite of the other. For example, Bitcoin trading might have certain features which won’t be there when you buy Ripple coin.
What is market cap (capacity)?
Caps denote the maximum capacity any entity can reach. These are always hypothetical and are a pure result of an analysis. I will give you a much simple example to understand this concept better. Last year, a study said that when the earth’s population reaches 14 billion (nearly double of what it is now) then there will be a population cap. This means that the earth wouldn’t be able to hold that many people on this land with the limited amount of resources that there are.
Similarly, when cryptocurrency keeps on growing it might reach a position where it cannot multiply or expand anymore. But I would like to point this time and again that it’s a work of hypothetical research. There is no solid proof of that.
Will cryptocurrency extinguish?
The straightforward answer is NO! Let me explain you why I said that. Cryptocurrency, unlike the regular fiat currency we use is decentralized. It does not have banks or institutions to cut their commission to and from. Being independent in nature, there is not really any single body where you are answerable about your funds.
How much profit you make or how much Bitcoin you choose to keep in your wallet us purely your business. To make things better, cryptos also offer to keep your identity anonymous.
There is no way in hell that cryptos can come to a point where they will stop mining. Considering the fact that digital money is not even mined in physical format; that is completely impossible. You need to keep in mind that crypto cap is just a theory that has been floating. If and when the total value reaches 100 trillion USD it wouldn’t actually be a nightmare. It would imply that a lot more people have access to and knowledge about digital currency.
What happens when the 100 trillion USD mark is crossed?
Nothing scary is going to happen fellas! The world does not get doomed and no one dies! We can all agree that after cryptocurrency crosses its cap mark (which could change over the years); a majority share of earth’s population would be inclined towards it. It means that rather than fiat money, we will be using virtual money as our primary mode of currency for purchases and transactions. Well, that would be a different world altogether. If that eventually occurs then Craig Wright’s dream would finally come true. Craig Wright is the founder of Bitcoin was initially disguised himself as Satoshi Nakamoto for a very long period of time.
Conclusion
In conclusion, we can start by not eating everything we read and get to know the facts better. The statistics of caps keep changing every alternate year. 10 years back 6 billion was the population cap for planet Earth. Well, we are at 7.7 billion now and everything is just fine. Hence, go through the facts first and do not worry.
In the case of cryptocurrency, they are a trend of the future economy and we can hope nothing but the best from it.
