The venture capitalist and the famous advocate of cryptocurrency Tim Draper exposed his prediction on the cryptocurrency market at the DealStreetAsia PE-VC summit in Singapore last Wednesday, when he predicted it would rebound to $ 80 trillion in 15 years.
The famous investor thinks that blockchain and cryptocurrencies "will have such a transformative effect on industries that we would never have even imagined would be transformed."
Like many investors before him, Draper compares the potential of this industry for the Internet boom in the 90s. The Internet, in exchange, was compared to the telegraph, the railroad, and the automobile industries in its time. Nobody thought that different industries like agriculture, for example, would have embraced the Internet.
Likewise, cryptocurrencies will likely revolutionize some unexpected billions of dollars, such as finance, health care or governance. (Yes, even agriculture.)
Peaks and valleys
Continuing the analogy between cryptocurrencies and the Internet, Draper pointed out that the Internet market has noticed similar downward moves at the beginning. Nevertheless, every incident was followed by an even bigger wave.
"The Internet started the same way, it came in big waves and then crashed, and then the next wave was concentrated but much bigger, and I suspect the same thing will go on here (with bitcoin)," they were the same words of Draper, according to Deal Street Asia.
In fact, the investor has dared to say on previous occasions that the technology behind the cryptocurrency "is bigger than the Internet" or any other technological or economic revolution before – and he is not the only one . Other experienced investors familiar with the Internet boom, like Brian Kelly, also estimate that cryptocurrencies are an unmissable opportunity just like Microsoft in the 80s.
Eighty trillion dollars is a big interest, especially when you talk about a fragile market that currently holds barely $ 200 billion.
What is behind Draper's prediction? Perhaps the investor anticipates that cryptocurrencies will experience a clamor just like the Internet in the 2000s:
According to data shared by the Internet World Stats, the use of the internet worldwide has increased by more than 100 times within the same period of 15 years, between 1995 and 2010. While it is not possible to adapt this number exactly to make an economic forecast, if the adoption of cryptocurrency should increase 100 times within 15 years – considering that about 4 million use Bitcoin at the moment – you can only imagine what would be the cryptocurrency market.
Here are the statistics for the most famous Internet giant, just for the purposes of comparison:
What are your thoughts on Tim Draper? S Capital cap forecast for $ 80 billion? Let us know in the comments below!
Images courtesy of Shutterstock, PCWorld and Statista.com.