With Bitcoin recently surpassing its 3rd halving and surging 3,800% + the last 5 years, many investors believe they are too late to “the party.” Cryptocurrencies are still significantly below all-time highs and the CEO of one of the biggest cryptocurrency exchanges still believes that anybody getting into the market now is still early.
The CEO of Binance, Changpeng Zhao recently shared his thoughts about this topic on social media. According to a recent twitter post, CZ believes that investors entering the cryptocurrency markets are still very early. He believes this theory holds true if investors even waited another 5 years to get involved. CZ was quoted saying:
“Everyone I have met that got into #crypto, thinks they got in too late, no exceptions, myself included, until 5 years later.
I expect the same will be true in 2025. We are still early in the game.
Not financial advice. And don’t trade if you are not a trader. #hodl.“
CZ disclosed in other tweets that he got involved in Bitcoin when it was trading at $600 in 2014. He initially sold his house and deployed all the capital into Bitcoin. Despite his initial investment losing -66% + in the early days, he managed to ride the market which paid off significantly.
Why Is It Early?
Despite global crypto markets being valued at $252 billion, they’ve only made a splash in terms of global adoption. In a recent article talking about Bitcoins volatility, it was outlined that global crypto markets are a small fraction of global finance. In comparison to the current cryptocurrency market cap of $252 billion, the stock market is currently valued around $70 trillion. In addition, the fixed income market ( bonds ) is even larger, currently surpassing $100 trillion. With the regulatory framework still in motion, the digital asset market has significant opportunity to take larger market share. Whether we are talking about trading, remittances, payments, e-commerce, or retail, we’ve seen a small fraction of what’s to come. To further verify Binance CEOs outlook from the tweet above, he recently stated that Bitcoins market cap could reach $2 trillion in the near term. That would mean 1 Bitcoin could be valued around $100,000 in the future.
Bitcoin still has low adoption on a global basis. Despite the potential use cases and value propositions, Bitcoin has been slowed down by regulatory pressures, especially in China. Even though Bitcoin has seen exponential growth since inception, chances of your best friends owning Bitcoin is low. According to a study by Statista, out of 1,921 participants, only 2% owned Bitcoin. Despite the respondent basket being fairly small, we still live in an environment where the top stock market brokerages in the world have nothing to do with digital assets. Retail clients at the largest brokerages like TD Ameritrade, ETrade, and others have no ability to call in and purchase Bitcoin. Users still have a difficult time purchasing digital assets through exchanges due to trust levels and familiarity. Industry age and regulatory clarity will help the industry evolve. In the future, what would the price of Bitcoin look like if you had a low fixed supply asset that a high amount of the population knew how to easily purchase?
Far From All-Time Highs
Cryptocurrency markets are nowhere near their all-time highs. Most of the largest cryptocurrencies by market capitalization are priced 50-80% lower than their all time highs. Many investors see substantial upside from current levels, and this is another reason why visionaries in the space like the CEO of Binance sees significant upside. The figure below was provided by CoinGecko. This gives us a better representation of where we are today compared to all-time highs.
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