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Cryptocurrency market capitalization – what is the overall market value?

2.1. compared to USD Forex market

2.2. compared to stock market

2.3. will it grow to a world level?


The capital

There has been much talk and even greater speculation on the matter of cryptocurrency and the amount of market value that it bears. It is phenomenal from a macroeconomic point of view that a currency created literally out of electricity and thin air without any backing is capable of bearing value. The best analogue is making money in a video game and spending it. The difference, however, is that cryptos are already being accepted in many payment terminals and by some companies as legal tender. The situation is dangerous and many governments are looking seriously at the issue of cryptos overpowering conventional currencies. The issue is becoming even more beleaguering if one takes a look at the market capitalization of cryptos in numbers.

Time for hair to rise as cryptocurrency market capitalization industry-wide has reached $200 billion. This is a meteoric increase from the $40 billion market cap at the beginning of 2017. A recent article by The Merkle suggests that despite the swift gains in the overall market cap for the cryptocurrency industry, the market has yet to deal with incessant volatility, which, despite the record-setting market cap, has only gained momentum and is showing no signs of abating. It is no surprise that Bitcoin remains the basis of capitalization as all of them in circulation are worth more than $125 billion.

One may compare the crypto market with Forex as both are trading platforms. However, there can be no comparison and the judgment is flawed from the start as Forex has no market cap and its capitalization per day reaches $4 trillion a day. If compared to the crypto market, the latter will look like petty cash in a rundown store on the outskirts of Harare.

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Even more misleading is the thought that the crypto market’s capitalization can be compared to that of stock markets. If numbers are of any indication, then Forex itself will look like petty cash as in 2017, the world’s stock market capitalization overall reached a staggering $64.8 trillion. The crypto market is smoking nervously in the corner and has a long way to go to become any real threat to the established world economy.

Looking at the situation as it is not, and if we take 2017 as an example, then mathematically, taking into account multiple factors of volatility and a flight of fantasy, we can estimate that it will take anywhere from 200 to 350 years for the crypto market to come even close to half of the world’s stock market capitalization that we see today, without taking into account the growth of the latter by the time centuries ahead.

Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.

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