Bitcoin (BTC) is one of the most successful cryptocurrencies and has become a booming industry in recent years. The digital asset has been soaring in value, breaking all-time highs on its way to reaching nearly $20 trillion in market capitalization within 10 to 20 years.
Many agree that this milestone is not out of the realm of possibility considering Bitcoin’s skyrocketing popularity.
One analyst believes Bitcoin could be worth more than $20 trillion if it were to become an asset class, but there is a catch. According to Willy Woo, who is known for being one of the most vocal supporters of Bitcoin, the cryptocurrency would need to be regulated adequately before it can become an asset class and achieve such a high level of success.
In a new interview, Woo says Bitcoin will increase its market cap by more than 20 times.
“I believe the market capitalization of Bitcoin will be more. Maybe close to $20 trillion.” Bitcoin’s price is currently $43,936 at time of writing while its market capitalization stands at a little over $830 billion.
The legal landscape will determine whether Bitcoin achieves a multi-trillion market cap, says Woo. “A lot depends on how regulation plays out. Lots of unknowns.”
Woo believes that authorities in places such as Europe are negatively impacting Bitcoin by triggering fear, uncertainty, and doubt (FUD). “The central bankers, particularly in Europe, are obliterating Bitcoin. I wonder how that impacts matters.”
According to Christine Lagarde, president of the European Central Bank, Bitcoin is a “highly speculative asset” used for “funny” business. Lagarde called for global cooperation aimed at regulating this flagship cryptocurrency.
According to Erik Thedeen, vice-chair of the European Securities and Markets Authority, Bitcoin mining should be banned in the European Union. The on-chain analyst also says Bitcoin may not reach its full potential.
“There’s a fair chance it [Bitcoin] will be pushed aside as a ‘good try’ and become a $1 trillion exotic asset category rather than something of significance.”
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
