It was only a few weeks ago that everyone was reading headlines about how the total market capitalization of all cryptocurrencies had just passed the $30 billion mark for the first time, but now, in a mark of how rapidly the cryptocurrency market has grown, the market capitalization of Bitcoin alone is now quickly approaching this same $30 billion mark.
The recent Bitcoin growth seen over the past few weeks has truly been astonishing. In fact, the prices have suddenly started shooting up so dramatically that the Bitcoin market cap increased by more than $1 billion in 24 hours alone. Similarly, the price of all other cryptocurrencies has also grown at a similar rate to the point where the total market cap of all non-Bitcoin currencies is now approaching $25 billion.
To put this in context, these huge rises means it is likely only a matter of weeks or even days before the market cap of Bitcoin and other currencies exceeds that of Netflix (currently hovering around $67 billion). Still, all of this begs the question of whether this current Bitcoin growth is sustainable and also of what the future may hold for this and other cryptocurrencies.
The Future of Bitcoin and Other Cryptocurrencies
The growth of the Bitcoin market cap over the past year is astounding and goes far beyond what most would have predicted. From just over $6 billion a year ago, Bitcoin has seen its market capitalization shoot up to over $28 billion today. The problem is that this huge rise has made it nearly impossible to predict what the future will look like for it and other digital currencies simply for the fact that they have already blown away most yearly expectations.
At the beginning of the year, many experts were predicting that the Bitcoin price would slowly continue to rise and eventually reach $2,000 per coin by the end of 2017. However, it now looks like we’ll see the value soar well past that level before we even reach the midpoint of the year. Of course, the potential ‘hard fork’ issue still remains for Bitcoin, which obviously has the potential to harm its value depending on the outcome.
Still, the fact that it has recently been able to weather numerous other potential storms seems to point towards Bitcoin’s stability. Furthermore, even if Bitcoin were to stumble, the continued rise of other cryptocurrencies seems to point towards a huge future for the digital currency market.
Digital Currency Legal in Japan
Factor in that Japan has recently legalized digital currency trading and Russia is set to follow next year, and it definitely points to a possibly even brighter future due to the increased number of potential investors. Already we’ve seen a huge increase in the number of people buying bitcoins with Japanese yen, and this trend will most likely follow with Russian rubles in 2018.
More than $25 billion has been invested in cryptocurrencies in the last month alone, and while there’s no guarantee that this level of investment will continue, the fact is that Bitcoin continues to far outperform most everyone’s expectations. Therefore, even if the investments do slow down (which currently doesn’t seem all that likely), there’s a good chance we will eventually see the Bitcoin market cap suddenly rising above $30, $40 and even $50 billion within the next few months and years.