Capitalizing on a New Global Asset Class
2020 investment opportunity — emerging uncorrelated asset class for the next decade
The Rise of Crypto
To date, the entire crypto asset class has experienced over $185 billion market cap growth in the last 10 years, with an ATH of $815 billion in 2018. (1) If you had invested $100 ten years ago in Bitcoin, you’d have a 9,150,088% return with $9.2M today. (2) In the last ten years, out of the world’s largest top 10 companies, Bitcoin has drastically outperformed them all and to date has the lowest market cap.
Bitcoin is the leading crypto in terms of market cap and despite its +45% drawdown since late June, it still boasts one of the best 2019 returns of any asset globally.
Whether you look at the past 10 years, 5 years or 3 years crypto as an asset class has generated the highest return of all major asset classes globally. The crypto asset class market capitalization is a fraction of what other investment categories market caps are today. There is much room for growth while adoption occurs over the next decade.
A World Economic Forum survey suggested that 10 percent of global GDP will be stored on blockchain by 2027. (3)
And it’s still just the beginning.
Mass consumer and enterprise adoption has yet to occur and from a macro standpoint, crypto is getting better and stronger.
· Institutional financial firms like Fidelity and Nasdaq are ramping up products
· Investment Banks like Goldman Sachs and JP Morgan plan to roll out their own stablecoins.
· Pension funds and endowments are making investments into crypto funds
· Technology firms like Facebook and Samsung are releasing crypto consumer-facing apps
· The Chinese government is launching a central bank-backed stablecoin.
Perhaps more importantly, real use cases for the technology behind the asset class are emerging. Such as innovative decentralized consumer lending and borrowing to tokenizing financial and real-world assets via smart contracts, to instant micro-money transfers via the Lightning Network on Bitcoin.
There are provably real reasons to be excited about the long-term growth of crypto assets beyond just speculation and price. On-chain consumer products, most excitingly fashion, will open up a multi-trillion dollar opportunity.
This asset class is positioned to create value across the world’s largest industries through a series of disruptions by the creation of new and next-generation use cases, behaviors and business models in the application layer.
“100% of the stocks and bonds trading on Wall Street today could be tokenized, and in five years, 100% of the stocks and bonds on Wall Street will be tokenized.” — Robert Greifeld, the former CEO of Nasdaq
