I hate writing cheesy titles but here’s why the title isn’t a lie in my opinion.
If you make the argument that crypto is here to stay and it’s the future then we have barely gotten started yet. The market cap as I’m writing this is standing at $200 billion. That’s a big number and if you don’t have a frame of reference it could seem like that ship has sailed and you can forget making 5000% return on your investment.
Here’s why you’re wrong. At the peak before Nasdaq burst in 99′. the market value of the companies listed on the Nasdaq exchange was $6 trillion. That’s 30 times the market cap of cryptocurrencies. Not only that, Nasdaq includes tech companies and far from every tech company in the world is listed there.
Money is a global thing, everyone can participate in the crypto market. We’re basically fundamentally changing how we store our wealth. Bitcoin might not replace fiat when it comes to buying milk at the local grocery shop but you could make a good argument why it will replace gold, essentially making bitcoin gold 2.0. The market cap of gold is over $7.8 trillion. The combined(not just bitcoin) is not even 1/30th of the market cap of gold. Also, I’m going to piss off a lot of gold enthusiasts, I think crypto will surpass gold by far and it’s not even close.
You can’t conveniently transfer gold from one person to another person. It’s inconvenient and an outdated way of storing wealth. An extremely low share of the global population has a meaningful amount of their portfolio in gold. It’s far easier for people to adopt bitcoin or another cryptocurrency in mass scale compared to gold. Look at how young people are behaving, I’m sorry to say this to gold investors but there will never be a mass adoption of gold as a store value. Those days are over. Younger people are far more likely to put their extra cash into crypto than jewelry.
The counter-argument is: Well bitcoin is just numbers on a computer screen while gold is something physical that actually has a demand. Sure, gold has a demand but the demand doesn’t come from industry or even jewelry makers. The vast majority of gold is derived from people viewing it as valuable. The industry usage of gold and the amount of gold that has actually been turned into jewelry is so small that it only drives a fraction of the current gold price.
I’m well aware that gold has one major advantage over bitcoin and that is historical precedence of being accepted as a store value. Everyone knows what gold is and it requires zero technical understanding to buy and store gold. No matter what language you speak everyone understands that the yellow shiny metal is valuable.
Obviously, the big million dollar question is IF crypto is the future and WHICH coin will succeed? Nobody can say for sure where we’re headed but I’m sold on the utility of cryptocurrencies and I’ve placed a fair bit of my portfolio in crypto. Even if you don’t believe in it, by the off chance you’re wrong you will miss out on massive gains. If you invest 5% of your portfolio in crypto, you can at most lose 5%. Given the strong use case of crypto investing atleast a small portion is a no brainer for me at least.