How much upside is still ahead in crypto currencies.
The recent surge in crypto currencies has brought the total market cap of crypto currencies to around 100 billion dollars, an important round number.
Global M0 is around 6 trillion dollars. M1 is around 30 trillion dollars. M2 is around 90 trillion dollars.
If we assume 1% of money will flow into crypto currencies, this target has been reached in terms of M0, 200% upside remaining in terms of M1, 800% upside remaining in terms of M2.
If we assume 5% of money will flow into crypto currencies, then the upside potential is 5 times bigger.
Money supply is growing day by day but so is the number of crypto currencies. So over all, let's assume everything stays roughly in the same proportion. Let's also remember that it does not take 100 billion dollars to ramp up the market cap of crypto currencies to 100 billion dollars in the short run, but in the long run, we can assume so.
Below is a great graphical representation of all money in the world(a bit outdated regarding bitcoin):
http://money.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization/
A massive, mind-boggling amount!
I'm dubious about 5% flowing into crypto. Either the powers that be will crush it within a year, or it will take over more than 50% by 2030, sooner if there is any sort of economic crash.
I think a portion of the whipsaw action we are seeing now is the powers that be already trying to influence the psychology of those just entering or not certain about their positions. Interesting how Coinbase often "goes down" simultaneously with the smashes.