By Life is looking sweet for crypto investors and consumers alike if Changpeng Zhao predictions are correct. The CEO of Binance whose better known as CZ recently claimed that crypto will grow to more than a thousand times in the coming years.
Earlier this week, Vitalik Buterin, co-founder and creator of Ethereum said that while it is possible for the cryptocurrency sector to grow by a thousand times, it is unrealistic to expect the prices to grow at the same rate.
“The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” he said.
Chanpeng Thinks Differently:
Last year in 2017 the cryptocurrency sector saw its most frenzied annual growth rate as the big guns such as Bitcoin, Ethereum, Ripple & Bitcoin Cash increased from 30 to 500 fold within the 12-month window.
The industry on a whole experienced a massive exponential growth rate during a period in which digital currencies were just being introduced to the mainstream. It was major far-east markets such as Japan and South Korea where levels of speculation and interest caused Bitcoin prices to spike and surpass $24 000 in the exchange market of South Korea. 
Vitalik Buterin went on to state that based on the present valuation of the crypto market, that it’s unrealistic to expect the value of the crypto market to increase from $200 billion to $ 200 trillion which would amount to 70% of the current global wealth on a whole as this would bare the crazy notion that cryptocurrencies would eventually overtake reserve currencies and become the world’s primary method of payment and transactions.
Zhao stood by his argument, by stating that the cryptocurrency market can still “absolutely” grow by a thousandfold in the long term as the major coins like Bitcoin and Ethereum continue to penetrate into the mainstream.
“I still disagree with this. I will say ‘crypto will absolutely grow 1000x and more!’ Just reaching USD market cap will give it close to 1000x, (that’s just one currency with severely restricted use case), and the derivatives market is so much bigger.” – said CZ.
CZ went on to explain that the notion of a thousand-fold increase could be seen as unrealistic if it were evaluated based on the traditional market size which implies that the cryptocurrency market could indeed surpass the traditional market size!
You also can’t use traditional market size to measure the potential for new technologies or industries. If you used (and people have) taxi market size to estimate Uber’s potential, you would be off by quite a bit,” he added.
How Do We Even Begin To Picture A $200 Trillion Market Cap?
If the crypto market reaches $200 million it would indeed become the main source of global payments. It would be all merchants around the globe would be using cryptocurrencies as opposed to credit cards and cash. Ultimately even banks would switch from fiat to crypto.
This support and confidence by CZ and other crypto investors as to the ability of crypto to compete against fiat currencies will, of course, be met with decades of red tape, bureaucracy, experimental integration, and mainstream adoption to be proven right.
Do you agree with Buterin that a 1000 fold return is unrealistic? Let us know your thoughts, CZ seems to think so, but how do you feel about this notion?
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