Generally speaking, the crypto market is relatively young.
The first cryptocurrency was born in 2009 which leave us with the conclusion that the oldest cryptocurrency, Bitcoin, is just 11 years old (or young).
The majority of other cryptocurrencies are from 3 up to 5 years into the market. The latest wave of new cryptocurrencies happened in 2017-2018 in the time of big market bubble.
At the time of writing, June 2020, there are more than 5000 cryptocurrencies with a total market valuation of around $250 billion.
The highest point was in December 2017 when the total market reached its peak of above $800 billion. Most people ask what’s the potential of Bitcoin and the rest of the cryptocurrency market?
To answer this question, we need to compare the cryptocurrency market to its competition and see if it still has room for potential growth.
Crypto market vs Stock market
Comparing to the stock market, crypto is very similar.
By buying shares of some company you are becoming part of the company and the project they are working on. Same things happen in crypto when you buy some coin, you spiritually become part of their community.
Most buyers get “married” to the coin they buy which is not the way investing should be done.
Stock market cap valuation at the moment is around $90 trillion.
It means that the stock market is approximate 360x times bigger than the crypto market.
Compared to the stock market, the crypto market is still very miniature.
The market cap of the biggest stock company, Apple, is currently $1.4 trillion. It is almost 6x bigger than the valuation of the entire crypto market at the moment of writing which tells you enough how miniature this entire market really is.
Crypto VS Forex
We can’t compare the market valuation of the forex market since you can’t literally buy the shares but what we can compare is daily volume.
The daily traded volume in Forex is roughly $5 trillion per day.
On the other side, daily traded volume in the crypto market is currently around $50 billion. It means that the crypto market, compared to Forex, is 100x time smaller.
Crypto vs Gold
A lot of people like to call Bitcoin digital gold due to their similarities. Behind both of them, there’s a process of their creation and it’s impossible to make any of them out of thin air just by printing more.
The market valuation of Gold at the moment is around $9 trillion, which is approximate 35x times bigger than the entire crypto market and roughly 50x times bigger than the market valuation of Bitcoin which is at $180billion.
The fact that the crypto market is still extremely small compared to other markets, gives us a clear sign of its potential.
That’s the reason why it is considered as the hottest investment opportunity in the market.