The cryptocurrency market size is set to grow ten-fold by 2025 according to a new research booklet published by US Equity Research analysts at Canadian investment bank, Canaccord Genuity.
At a time when other analysts are predicting the demise of bitcoin and its peers, and financial figureheads such as Jamie Dimon believe that bitcoin is a “fraud,” Canaccord’s positive outlook for crypto assets is a welcome relief for supporters.
Cryptocurrency Market Size To Grow To $1TrillionAccording to the investment bank's analysis, by 2025, as crypto payment networks mature, and consumers, as well as businesses, gain trust in cryptocurrencies, " the total value of all cryptocurrencies required for payments and store of value will grow from $11.2 billion /$16.6 billion in 2017 to $1,132 billion /$92 billion in 2025," that's a Cryptocurrency market size growth of 9998% or a compound annual growth rate of 78% (see chart below exhibit 30 which seems to indicate Bitcoin going to near $500B compared to current market size of ~$72B and the total market cap).
Investors are throwing money at the industry to try and capitalize on currency market growth, at the early stages, before transaction volumes really take off. Canaccord's data shows that bitcoin venture capital investments have grown from an almost insignificant $2.1 million for 2012, to $601 million for 2017. Cumulative venture capital bitcoin investments have surged from $2.1 million to $1.6 billion.
Bitcoin's biggest opportunity is the payment market, and despite all of the media attention the alternative currency is receiving, as a share of the global payment's market, it's still insignificant. Canaccord's analysts note that the cryptocurrency's recent rise in value has been "at least partially by increased transaction volumes as BTC’s usage increases." The report continues "n BTC’s value was simply a matter of 'catching up' to the transaction volume" also the recent "correction correlates closely with a softening of transaction volume."
If this relationship continues to hold true (which is highly likely) then as bitcoin transaction volumes grow, investors in the asset should be well rewarded. Indeed, bitcoin daily transaction volumes were only $131 billion during 2016. In comparison, Western Union volumes were 461% higher at $735 billion, and Paypal volumes came in at $970 billion. MasterCard processes 202x more transaction volumes with bitcoin and Visa processes 172x. Put simply. bitcoin is still a speck on the global payments landscape.
As cryptocurrencies continue to grow their percentage share of total daily transaction volumes, the value of these assets should continue to expand concludes the report. Rather than placing a price target on bitcoin, Canaccord's analysts instead compute the estimated size of the cryptocurrency Market size by 2025 arriving at the figure of $1,132 billion based on current trends in both the crypto assets and traditional money markets.
http://www.valuewalk.com/2017/10/cryptocurrency-market-size/...
Bitcoin's high growth and large potential future growth are likely some of the best arguments against btc being a bubble. Bubbles tend to be defined more as assets which are overvalued in markets with stagnant growth. Over the long term if bitcoins potential growth is thousand times larger, this could imply it is still undervalued by a significant degree.
One thought that comes to mind is these financial analysts are probably not taking into account the technical limitations of what bitcoin can realistically achieve in terms of transactions per second. 1000x might be an exaggeration given the technical constraints. Although even if bitcoin's growth were capped at only 200x or 500x, that would still represent ridiculous overwhelming growth over current day metrics & demand.
Looking at some of the graphs and charts, it is impressive how amazing crypto is.
