I think there will be 3 massive changes.
1: Replacement of FIAT and Bitcoin
Have a look at this infographic.
Taking into account that all gold in the world is worth $7.8 trillion, all money $28.6 trillion, stock markets $70 trillion, a global crypto market cap between $28.6 trillion and $70 trillion is not unrealistic.
That is if course, only if crypto actually replaces FIAT.
So, let’s say that crypto grows by 150x from today $300B to $50T.
I also don’t think that Bitcoin will be around at that point still. Some say it will function as digital gold, but the tides can change extremely quickly in crypto.
So, when one cryptocurrency manages to gain mass adoption, Bitcoin could decline by 98% within 3 years quickly.
I think Bitcoin will find its maximum at $70,000-$100,000 within the next year since all bull runs make 17x return on Bitcoin on average. Then, the 70% crash will come, like with all bull runs on average back to $21,000- $30,000 and then it will probably stay between $20,000 and $40,000 for a few years, but then slowly lose market share again, since Bitcoin’s technology is pretty bad and if Bitcoin doesn’t become 1,000x more scalable, more energy friendly, more decentralized, faster, it will disappear.
The way it looks right now, I don’t see it being able to catch up with other cryptocurrencies which innovate 5x faster than Bitcoin. Bitcoin is just too slow to innovate. They have hundreds of developers and every change needs to get signed off by the community. This paralyses innovation. Too many cooks…
2: Implosion and recovery of the banking industry
Since the main service of banks, storing money, likely to not be need anymore within the next 3 years, 80% of bankers will lose their jobs and 80% of banks will probably have to shut down.
However, a few banks will survive, the ones which create services around cryptocurrencies, such as loans, payment gateways, consulting, security improvements.
3: Implosion of very large industries and subsequent reshapement
The blockchain will have the biggest impact of very complex industries, where there are lots of gatekeepers and middlemen that take out money and put it into their own pockets. The blockchain democratizes everything and take the power from very few to the many.
There are 14 industries that I identified as such. These are
Voting, Healthcare, Gambling, Pension Funds, Energy, Gaming, Real-Estate, Lending, Ticketing, ISPs, Decentralized Storage, Security Identification, Adult. I wrote about this in detail here MK's answer to What are the coolest innovations with Blockchain technology recently?
Conclusion
- Crypto will likely balloon to a $50 trillion market cap from currently $300B.
- Banks will likely implode and completely reshape
- Many more industries will likely implode and completely reshape
Exciting times. :)
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