What if Cryptocurrencies reach 1% of the total Capital Markets?

in cryptocurrency •  last year

What would that mean for the price of Bitcoin, for Steem?

Exciting to think about, right?

Well that is precisely what independent stock research analyst Ronnie Moas thinks will happen.

He has a great last name by the way...

In stock and trading circles, MOAS is an acronym for Mother Of All Short squeezes...

Now that we know he has got the name, let's take a look a look at what he thinks is coming for Bitcoin and for the entire crypto space.

In a report released yesterday Moas said that he has little doubt that at some point 1% of the money in cash, bonds, stocks, and gold will eventually find it's way into cryptocurrencies.

Currently the crypto market is between $80 and $90 Billion (depending on what day you look at it).

If you take that $80 Billion number, that would mean that the crypto market is currently a 25th of 1 percent of the $200 Trillion in gold, cash, stocks, and bonds.

Which means...

The cryptocurrency market would need to increase by 25x in order to reach his target of 1% of the overall capital markets!

Pretty good return on your investment right? 

Now, what happens if cryptos eventually become part of asset allocation models and take 2 to 4 percent of capital markets?

That would mean the entire space would need to increase by 100x in value to reach those percentages of global capital markets. 

Those are the kinds of returns I could be sitting on a private island day dreaming about! 

To further put things into perspective, check out this chart:

This sounds great and all, but what is the best way to get a piece of it?

According to Moas, he thinks Bitcoin and Ether will be two of the bigger players in the future so you want to own them, but really it is a crap shoot. 

For that reason, Moas recommends diversifying amongst some of the bigger and more well known names out there currently.

For example, Moas bought 10 of the 20 largest cryptocurrencies by market cap just in the last couple weeks.

The list can be seen here:

By the way, do you see who happened to make the list at number 20 way down there at the bottom?!

That's right, little ol Steem!

What makes this investment advice interesting from Moas is that he has been giving investment ideas and advice for years, but this is the first time in the last 10-15 years that he has ever actually put his own money to work following his advice.

Which means...

He likely has some pretty strong convictions about this one. ;)

Stay informed my friends!

Sources:

https://www.cnbc.com/2017/07/31/bitcoin-to-surge-nearly-80-percent-to-5000-standpoints-moas-predicts.html

Image Sources:

http://www.wallpaperup.com/678707/BITCOIN_computer_internet_money_coins_poster.html

https://www.investing.com/analysis/bitcoin-in-perspective:-bill-gates-worth-more,-gold-200-times-more-200196818

https://www.cnbc.com/2017/07/31/bitcoin-to-surge-nearly-80-percent-to-5000-standpoints-moas-predicts.html

Follow me: @jrcornel

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Thank you for putting up this post! It just gives another boost of positivity into the space. Seeing the growth over the past few months and the potential the crypto has I can see this not only happening but going well beyond that. There are many amazing coins and projects that will change the business functions these days. No need to go far, STEEMIT is a pure example. I am personally diversified between 5 coins that have a very promising future. If only one of them goes 100x then I would be sitting on a very nice profit:).... Good luck and keep on steeming!

Hope to see a 15 to 20 dollars steem price in 2 years.

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This post received a 4.7% upvote from @randowhale thanks to @tournego! For more information, click here!

As far as I'm concerned this is maybe one of the most rational summaries I've read in ages. Totally agree except my list of top bets is slightly differen in weighting. But hey, I'm writing here. I'm passionate and biased!

From the top 20 some will not survive. The potention is there for sure. Upvoted.

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That's why you need to diversify

Thanks for sharing!

Well, with all the news lately, I think it's totally possible that this could happen. Bitcoin is being sold officially in Austrian post offices, is legal tender (basically) in a few countries, it just got approved to be traded as basically a stock in the US. Just look how much it went up in the last year. It seems the higher we get, the quicker we snowball so the closer we get to that 1%, the faster we'll gain momentum, assuming nothing happens that kills the crypto space.

I'm still new to all this, so who knows. Just the way I see it from watching the market.

That will definitely happen very soon...It may not even take a year to reach that target, ... sky is the limit for Bitcoin,...,Steem prices to grow.

The Fed printed $39 Trillion dollars to bail out the banks in 2008. Lol, and people call Bitcoin "imaginary."

When cryptos reach 1%, bitcoin will be worth well over $1,000,000 USD each! :)

From a purely investment point of view, should one even put money in the stock market with cryptos having so much potential growth? I started studying investing recently and quickly found myself on Bitcoin and crypto. With the stock market it seems as though I have to make the right picks and even then I have to wait a long time, or start playing with more money looking to capitalize sooner, ie, gambling. With crypto it seems as though I could make a killing investing across the board and just accepting the losses from the coins that fail. Also, if I am just way too far in over my head, please enlighten me to that fact.

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You would not be the only one that thinks that way, however, do keep in mind that there are still a lot of pitfalls out there awaiting the crypto market. Regulation could be a crypto killer at some point... it all depends on whether central governments will embrace it, ban it, or create their own...

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Right, don't put all your eggs in one basket ;)

Possible, just buy and hold and diversify and give it some time!

I think it would be safe to invest in from numbers 1-7

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The lower ones have more potential to grow ;)

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Yes I must agree, great example is Stratis it hit 1 Billion Market Cap I think was 2 months ago, You're absolutely right.

Thank you Very encouraging Most haven't caught on yet. When they do we will reap the benefits bigtime.

This is good.

Although I can't for the life of me understand how EOS can already be worth $380 million. This is the current problem with crypto. Most currencies or tokens are simply speculated into the stratosphere and have no sound basis for their value.

Until we see some of these companies actually creating value and find a way to value their worth with something tangible besides pure speculation and hype, we won't see as much money enter the space.

How long will it take for EOS to actually create something worth $380 million? until then everyone's investment is way over-priced and a has a lot of catch up to do before they are making any real gains.

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Yes this is almost exactly what i said in one of my comments on an EOS piece yesterday. 380 mln or whatever it is now for a team who have not even launched anything yet. Crazy. And still so much more to come, every day.

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The current "team" may not have launched anything yet, together, as a group. But, you've got to look at the individuals involved: @Dan Larimer being just one of them. He DID launch BitShares & SteemIt. And, that's just 1 person in the larger group. Have you done your due diligence or proper research into who's who in the crypto world? Because, EOS has some VERY heavy hitters involved. These are not scam-artists, they are blockchain, financial, & marketing artists. And, they are trustworthy people. I'm going to be betting my money on it, and I'll be feeling very comfortable with the risks involved.

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Fair - they are good people and a better team than most. Does it justify the enormous money raised in this ICO? Is all that needed for development and maintenance? I think not. This is what is worrying me the most.

Great post as always @jrcornel! This keep me determined to invest more in cryptocurrencies!! Thanks again!

Thats a great post . I see why it went HOT . Time is the only missing ingredient .

I agree that we should all diversify when it comes to cryptocurrencies!

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Not only when it comes to cryptocurrencies ;)

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Cryptos are like any other speculation, gold stocks, options, position size is the key, don't put more than 5% of your portfolio in any one idea. Create a basket of of small positions, some will go to zero, but it only take a few winners to cover those losses and profit.

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and even 5% is a huge allocation to a crypto, maybe 5% for the whole basket

very well written post thank you great graphics too , 20th now steemit who knows in 6 months ....

Great article. As a matter of fact the cryptocurrency market is already greater then the GDP of Hawaii or for that matter 12 other U.S. states when compared individually.

Excellent post, greetings ..

I find it hilarious how Bill Gates is still worth more than double than BTC :D

Literally ridiculous.

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It's still a tiny market...

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I know, it's still crazy how so many people base their lives on BTC and crypto and that man (and a few others) are still way wealthier than the entire value put together.

Crazy don't you think?

Thanks for info! Interesting chart!

Followed, resteemed and upvoted I agree there is a huge investment potential in cryptocurrency right now if BTC was the start in 2009. Remember in 2009 $100 in BTC you would be a millionaire now. Invest at least $50 into altcoins and more into those you feel will do better.

Yeaah! Blockchain is the best!

oh that sounds really great :)
I am very happy to be a part of this ;)

Well, I believe if it gets only .5 % of the total cash and gold reserve then it would be pretty huge. People are investing in crypto's heavily and in future it'll going to get bigger and denser. So I would say invest right now and take advantage of bitcoin cash as well as future potential of crypto markets.

With those numbers even the Average Joe will enjoy a new car, bought with crypto.

I think his strategy of diversifying into multiple different cryptos is a sound idea. There is still a long way to go for the cryptocurrencies, but eventually they will be adopted by the masses! A 25x return here would be QUITE nice! :)

Man! It will be an interesting ride. Thank you for sharing.

Wow that would be incredible! Imagine little ol Steem to the moon 🌙

That's what I like to see.... let's get that private island 🙌🏼😂

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Haha! What will we be drinking?

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Don't worry about that, I got you... I'll bring my STACKIN BAR LOL

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Stackin bar.. :D
BEAN-say-what.jpg

Thank you for sharing this post.
Really good stuff. I am glad to see this info and hear about this stuff.
I'm in a few of those top 20 myself. Look forward and hoping for those kinds of returns.
Thanks

that'd be awesome

Where does it say which 10 coins he bought among those 20?

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It doesn't. He said he bought Bitcoin and Ether. He said he was going to release part 3 of his report tomorrow that would talk about a smaller market cap crypto that he really likes.... hopefully it's steem ;)

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Ok, thank you. I also hope it is Steem. ;)

I still think that there is quite a way to go before cryptocurrencies become a legitimately recognised asset class. Take the recent example of the SEC rejecting the Gemini exchange's application for a cryptocurrency ETF. There is a huge question mark hanging over the cryptospace, and that question mark is regulation. I'm waiting to see how regulation impacts the space to make a determination as to if it will be a legitimate asset class for allocation models. However the growth potential is clearly there for the space, and Moas is absolutely right, get in now lol.

Great post, mate.

Exciting times are coming! I'm sure at some point the only money existent will be cryptocurrency and that would mean for crypto holders a nice ROI hahaha

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Great times we live in!

Why would he buy tether as an investment? I mean it's good to keep if you're expecting the prices to go down. But the whole point of tether is that the value will stay around 1 usd, so not a good investment if you ask me... Stratis on the other hand is the best pick after bitcoin and ethereum. Ripple is crap

I think it would be safe to invest in from Mkt Cap numbers 1-50. :)

Presented what will happen if my altcoyins increase in price by 25 times. Azh blinked with pleasure. :)

This was an enjoyable read. I always wonder about the potential of crypto myself, and sure do hope we can get to and surpass 1% of total world capital!

I really like your post @jrcornel

Excellent post. I was in the middle of writing up a post about this exact article but you beat me to it and far outdid what I would do. Great read. I think it's only a matter of time and I see it really out doing 1%.

Nice read !

So if I understand it correctly the crypto currency market cap needs to double roughly 5 times in order to reach the 1%

Great post, thanks for sharing!

Awesome Awesome post - Love the analysis - citing of sources and most of all the prediction link / please take a look at my post as it is a major concern of mine and the future of crypto https://steemit.com/cryptocurrency/@krytonika/why-fixing-the-alt-btc-pairing-price-problem-is-important

Thanks for an excellent post !
My opinion is that within the next two years, cryptos will
be far in excess of one percent of the major financial markets !

I read the article from Moas, and your article. Cryptos are the new "IT" thing in the financial markets. If you understand the power of the blockchain, you also know that it is "an idea who's time has come." Not to mention this fact: we still don't know about all of the potential creative uses for this technology will even be, yet. So, I think that estimates of 1% to 5% of total market capitalization is not only "conservative," it's way low. Personally, I would not be surprised to see blockchain technology being used to transact 1/4 to 1/3, or more, of world-wide transactions sometime in the next 5 - 10 years. Possibly a little longer. Whatever the case, whatever the total market share eventually ends up being, I do know this: right now cryptos are VERY, VERY, VERY UNDERVALUED. Anybody who buys 10 of the top 20 cryptos, then waits 10 years, is going to retire in unimaginable style - if they live to see 10 years.

Thanks a lot!

It is probable, just like a multitude of cryptocurrencies appeared after bitcoin, that steemit will face similar competition from blockchain-based social media platforms. Like bitcoin steemit will have the advantage of being first. Surely exciting times we live in.

I aint rich and neither do i have alot of money to spare. But i have invested small money in 6-7 of these coins.

This is fascinating @jrcornel thanks for sharing this.

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Super post! I esp. enjoyed the graphic comparisons of total wealth.... keep up the great articles