Nick Tomaino, Coinbase’s former product manager and the founder of cryptocurrency investment firm 1confirmation, has recently made some waves with lofty predictions on cryptocurrency potentially reaching a massive market capitalization of one trillion through mere speculation.
These comments came during a CNBC interview with Ran Neu-Ner, the founder and CEO of cryptocurrency investment and advisory firm Onchain Capital. Moreover, Tomaino stated that he views cryptocurrency investments and speculations as a form of adoption.
”I think it is possible that crypto gets from $200 billion to several trillion on just that [speculation]. From my perspective, what I’m seeing globally in terms of viewing this new investable asset class I think that’s possible.”
Although a cryptocurrency market valuation of ”several trillion” might seem exaggerated to some compared to the current market cap of ”only” slightly more than $200 billion, it should be noted that the cryptocurrency market achieved a market valuation of $800 million around the end of the last year.
Furthermore, Tomaino argued that the cryptocurrency market is about to feel the full brunt of an approaching ”important macro trend”, which would see the trust in authorities, governments and institutions like banks erode in favor of decentralized alternatives.
Tomaino also predicted that this change in trends could facilitate a massive influx of investors and institutional capital into the cryptocurrency sector.
Moreover, this comes as several technology firms, such as Facebook, have conducted various studies that showcase a growing preference among millennials to shift from ”legacy systems”, i.e., traditional payment systems, to trustless and decentralized alternatives within fintech.
In addition to this, Tomaino said that decentralized networks will grow in popularity in tandem with how society as a whole gradually shifts away from its reliance on established, traditional institutions towards peer-to-peer system alternatives.
”My view is that the most important macro trend of our lifetime is people increasingly distrusting governments and large institutions. I see it more as kind of a gradual movement into crypto, I think it’s kind of a gradual and cultural shift from people trusting large institutions and governments to using the blockchain,” Tomaino noted in the interview.
Nevertheless, Tomaino also noted that one of the most important developments right now within the cryptocurrency segment is how both industry infrastructure and middleware is quickly improving, which could eventually facilitate market stabilization.
It remains to be seen whether Tomaino’s predictions will end up being correct or not, but it is certainly an interesting proposition. Moreover, this lofty price prediction comes not long after Bakkt’s CEO stated that a ”cryptocurrency revolution” is incoming.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.