Raoul Pal says crypto market has ‘reasonable chance’ of touching $250 trillion

Raoul Pal says crypto market has ‘reasonable chance’ of touching $250 trillion

The field of cryptocurrencies is known for volatility and unpredictability. Some predict that the coins will forever change how we understand and interact with money and others warn of a dangerous bubble. This former Goldman Sachs hedge fund manager shares his optimistic projections and views about the same.

Reasonable chance

Acabamos de liberar um novo artigo no site! 👉🏻 Um bate-papo sobre DAOs, Web3, Metaverso, Regulamentações e muito mais!📖 Link para leitura: https://t.co/ZjcjYSlSzj— Bankless Brasil 🏴 (@BanklessBR) December 31, 2021

Real Vision CEO Raoul Pal is currently trending within the crypto ecosystem following his interview with Bankless Brasil. First some facts. At press time, the entire crypto market has suffered a major blow given the price corrections. The market is struggling to sustain the $2T mark as it witnessed a fresh 9% correction. Not really a good start.

However, Pal remains optimistic. He opined “there’s a reasonable chance” this figure could grow to around $250 trillion if the crypto network adoption models continue on their current trajectory.

But why fixated on this number? Is there any significance? Well apparently yes. Pal compared the digital asset market to asset classes such as equities, bonds and real estate. He added,

“If I look at the total derivatives market, it’s $1 quadrillion. I think there’s a reasonable chance of this being a $250 trillion asset class, which is 100X from here, which would be the largest growth of any asset class in all of history in the shortest period of time.”

That is, they all have a combined market cap somewhere in the range of “$250-$350 trillion.”

That will pretty much dovetail in with the idea that 3.5 billion people are using it — that’s just extrapolating the growth numbers of the network. So if [there are] 3.5 billion users in 2030, well the market cap’s going to be something like $250 trillion,” he opined.

Having said that, it certainly won’t be an easy ride. For starters, just look at the ongoing fluctuations within the crypto market. Tokens ranging from BTC to ETH to SOL all suffering the same fate. In fact, BTC, the king coin is trading at $42k with an 8% decline in just 24 hours. It wiped out nearly $60 billion from its market cap since the New Year.

Any surprises?

The market turbulence comes minutes after the U.S Federal Reserve’s December meeting. The central bank could hike interest rates as soon as this March. The news sent U.S. equities spiraling down. The tech-focused Nasdaq Composite index, which is known for its strong correlation with Bitcoin, shed 3.34% to close at 15,100.

Having said that, this bloodshed might come as a surprise for Pal, given his BTC predictions in the past.

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