At what point do you see it all crashing? I know little about crypto but the numbers guy in my head says it’s just not sustainable. Currently Bitcoin has a total value around 900 billion dollars. If Ethereum hits $10K this summer the total value of Ethereum would be 1.2 trillion (when a little over a year earlier it’s total value was 120 million).
The rate of growth is obviously not sustainable, otherwise a year after hitting 10K Ethereum alone would be worth more than all the non-Ethereum wealth in the entire world.
I’m not poo-pooing, as I’ve said I know little about it... looking back using little data other than standard graphs, crypto was what it was and all of the majors had a huge spike in 2017 and most crashed to earth at the beginning of 2018. Outside of a more standard growth they then were what they were until this current massive spike. More than anything I’m trying to understand why it’s not going to be the same pattern, the current big spike followed by a huge drop (in all of the well known cryptos, not just E).
If what you project comes to pass, adding in that by appearances the main cryptos tend to follow a similar jump/drop line as all the others, at that point your talking about the total value of a handful of crypto currencies representing a significant percentage of all of the wealth of the entire world.
My logic which is based on nothing other than those potential numbers makes me think a large crash has to be in the nearish future (potentially with another large spike in a few years), if not a crash than if nothing else it’s all got to hit a number and “settle in”. The growth just isn’t sustainable.
Thoughts?