The middle of February is approaching and some people are still skeptical about the future of the crypto market. While January was a month filled with FUD or negative news, starting February the market has started to show an organic and steady increase. This was due to the new announcements regarding updates, project developments and the hearing that took place in the U.S. Senate.
Some analysts are suggesting that the crypto market will not start to grow until the huge dip from January is forgotten.
While this article is only meant to lift the spirits a bit, we want to show you that the cryptocurrency market is still in its incipient steps towards becoming one of the biggest markets.
Let’s start with the most popular problem that our global economy is confronting with. DEBT.
In the third quarter of 2017, the global debt reached an all-time high of $233 Trillion. According to the IIF, almost $70 trillion in debt belong to the non-financial companies while $63 trillion is going to the worldwide governments, followed by the financial institutions with $58 trillion.
On the last place with $44 trillion, we have the normal households. There is not a direct correlation between the crypto market and the global debt. But rationally speaking – and this is a personal idea- there is a chance that some of the money that are being issued to cover debts could go in the future in the crypto market since everybody has access to it. From private investors to financial institutions.
And another argument could be that people are willing to go into debt in order to make more money.
Next, we have the global GDP which is 5 times smaller than the global debt at around $75 trillion. With the ongoing cryptocurrency projects in each and every country in the world, the launching of new products could increase the national GDP. This could result in a wave of new projects developed with cryptocurrencies in mind. We are not suggesting that the GDP will exceed the debt of a country, but it will come as an aid to the economy. Also, more projects mean more money.
The Stock Market
The Global Stock Market size was going in December from $80 trillion to $100 trillion. The analysts were scared that the next dip will resemble with the one in the late ’20 which resulted in The Great Depression. All because the market did not show any corrections, just a huge jump from $80 trillion towards $100 trillion. Sounds familiar?
From what we’ve seen lately in the world of cryptocurrencies, the dip from January has a massive correction. If we compare these two industries we can see a lot of differences but the most important is time. While the Global Stock Market represents the planet Earth’s market cap, the crypto industry is starting to become the market cap of planet earth’s technology so there is a lot of room for development since the crypto market cap is at around 0.4 trillion.
A Speck of Dust in Comparison with Other Markets
Forex market – $5 trillion
Cash (notes/coins) – $8 trillion
Gold Market – $8 trillion
Global Liquidity (cash, bank accounts) – $90 trillion
Derivatives Market Size – $550- 1200 trillion
Commodities market size $10 trillion
While many people are advising not to compare apples with oranges, these markets and industries are reaching for the same goal, money. Crypto, however, brings something new to the table, decentralization and even if this utopian idea seems hard to achieve there are a lot of people who are willing to buy a slice of the pie as long as it promotes the rupture between money and governments.
The author asked to inform our readers that this article was written based on personal opinions combined with worldly visions. The writer might be right or wrong take it with a grain of salt.