It’s surprising how many people think the time to invest in crypto has passed. Are you kidding?? Things are just beginning.
Crypto is a currency exchange asset which is meant to serve the global market. But in terms of global penetration and capacity, crypto is still in diapers. In its current stage, crypto is too small to handle the world’s money markets so there’s a huge potential for growth. Below is a visual to help explain what I mean.
In the chart, each square represents $100 Billion. Look at the number of squares that represent the entire crypto market. All told, the crypto market (at the time of this writing) is worth just over $200 Billion.
Now look at the squares for each of the large tech companies. Apple, for example, has 8 squares which represents a market value of $800 Billion. That’s 4 times the entire crypto market…and that’s just one company!
Now let’s take a step back and consider what Apple is compared to what crypto is.
Apple is a company with business goals that address the needs of one specific industry: tech hardware and software. Even though Apple has a large market value, it has only captured less than 30% of the global market within that one industry.
Crypto, on the other hand, is not a company. It’s a platform that aims to address the value exchange needs of the entire global citizenry. Comparing the value of crypto to that of a business or industry is a mistake. It’s more accurate to compare the value of crypto to that of the entire money global supply.
When we compare the value of crypto to the value of all money, crypto is dwarfed even more, to the point where it no longer appears to be an infant but more like an embryo.
For example, Apple is worth 4 times the value of crypto but the entire money supply is worth 450 times the value of crypto. At $90.4 Trillion, the world’s money supply is worth magnitudes more than crypto!
Given these comparisons, it’s clear that crypto has massive growth potential. What that means is, it’s not too late to get involved.
Imagine if you had invested $500 in Tesla 10 years ago when it first opened trading at $17 per share. Today, Tesla is trading at approximately $2,238 per share. Your investment would be worth nearly $66,000. That’s an increase of approximately 130x. Not bad.
Now imagine if you had invested $500 in Bitcoin at the exact same time. It was trading at $.08 per Bitcoin at the time. Now it’s trading at slightly over $11,300 per Bitcoin. Your investment would be worth $70,625,000. That’s an increase of 140,000x. Big difference!
(Note: You do not have to buy an entire Bitcoin when you invest in Bitcoin. You can invest any dollar amount you want.)
So imagine you invest $500 into Bitcoin at its current price. If Bitcoin continues to increase exponentially as we’ve seen in the last 10 years, it’s fair to imagine that it may increase another 100x in the next 10 years. That means your $500 investment could potentially grow to be worth $50,000. A growth of 100x may seem high but remember, it’s a lot lower than the 100,000x increase we’ve seen so far.
The biggest take away from this read, though, is when it comes to investing, remember that crypto’s market goals are not the same as a single company’s market goals. Crypto has a goal of populating the entire global money system. Those are big pants to fill! There is still a lot of upside to this asset. Imagine the growth potential as crypto grows out of diapers into big boy pants!
