Prices hit the 112 terminal bottom yesterday so this might be it. But there are fundamental indicators that suggest a change in sentiment, so especially BTC and ETH are a little toxic for now. Some alts at this level should yield x200 within a year or two, I am not sure exactly which ones but have a stake in some.
If we don't rally towards 422 immediately, the level around 4000 +-15% will range for a few weeks or months.
Could wick to 1200 -1500 btc to affirm may 2017 trading session pre tether, 40-60bn global. Possibly include organic market growth on top of this number with adjusted bottom, equivalent to 50% higher ($1800-2250 btc).
I find your analysis interesting, as well as bizarre, and it is right that you slightly adjust your prediction as prices and waves form.
If you have analyzed other blockchain projects, which ones can you think are the ones with the best potential to express: VeChain? Tezos? Stellar? Iota? Neo?
Do you have any suggestions or are you heavily invested in any of them, or others?
This is my interpretation based on present data sets:
1. The brands you list are part of the top 20 I believe. Considering that they are at 0.25 to billion dollar valuations or more already, combined with traditional market cap developments over time in high tech brands such as Microsoft and Apple in the 80's, barring the 2017 parabolic move caused by market confusion and possibly tether, a logic 5 year projection would presume that none of them exceed $400bn independently or consistently given 100% success in all areas of development and near market monopoly for each chain. I have not analyzed any of them in detail except Stellar which is similar to Waves, which my own brand is using as a utility platform for the proprietary product. The bottom line is that growth potential is great but risk variables remain uncertain, so utility investments are preferred over speculative investments (invest in things you need/use often).
2. Alot of the 1 Quadrillion dollar value estimates from hyperbitcoinization analytics wrongly assume present market conditions to remain static over the next decade. I believe that AI paired chains will represent perhaps 90% or more of the 1Qn projection, with traditional industries at a collective $100Tn, whereas global gdp for 2018 is at ~ $80Tn. This means, no $1 million dollar bitcoin or higher. There are no serious AI hybrid brands yet, and I don't expect any on the horizon for 5 years or more.
3. Bitcoin itself, given fundamental flaws such as Proof of Work, demonstrably dysfunctional scaling solutions which are not decentralized and importantly community behaviour by key people, concludes that its price may increase as a novelty factor in the near or far future, but not at a rate of competitiveness comparable to other emerging chains. Its dominance will likely fade significantly.
4. It is possible that ecosystems of different blockchain iterations such as Privacy Masternodes can capture small market share in a trillion dollar economy within 3 years or less. Many of these brands are at single or double digit million dollar valuations. Given a $100Bn potential market, distributed somewhat equally between a few dozen brands, we can conclude that there are some x1000 projections within that ecosystem in the present, with proven and strong momentum in some of these coins during late bullmarket 2017, as many were introduced around that time in batches. The primary source of this projection is based on DASH and its fork variations. However, I think that solo chains without a platform enabler such as Stellar or Waves, will experience slower adoption because of increased marketing requirements inorder to reach more users. By its nature there is also the ever present risk of regulation in this sector. From a scalability viewpoint, an ecosystem of 30 surviving and successful chains, each capable of 50tx/s (based on DASH and Pivx data), will enable around 10% of VISA capacity which aligns well with an expected market share of 10% in a 1-2 trillion dollar blockchain economy.
So what do investors need to be mindful of?
1. Dpos chains that are in the top 30 due to a higher degree of centralization comparable to PoS Masternodes. Exceptions include brands that offer something realistic beyond DpoS (Lisk has smart contracts in pipeline, Nano is DAG, and a few others want to build decentralized internet in top of their DPos). In general, the DPoS model is an inferior and outdated option from a decentralized perspective. There are newer variations of all of the above but the top 30 is more visible so people buy that before proper due diligence on the underlying tech and emerging options.
2. The current top 5 bubble which could easily shed another several tens of billions from total MC, or at the bare minimum, significantly underperform other coins, as soon as they unpeg from BTC.
3. Astroturfers such as Nexo (Goldman Sachs), anything proven to be operated by old world centralized institutions or Fortune 500 brands which are since decades coopted by (corrupt) government. These brands will soon migrate to blockchain and that is the source of a large share of the $100Tn projected market cap, so the growth will be ported, not new. Present Crypto index can grow towards 5 to 10Tn in 5 years but probably not much more, this is in line with Winklevoss statements.
4. Centralized exchanges which are already fading.