‘Less greedy, more long-term’ – Here’s the key to $9 trillion crypto market cap

• Peter Smith, CEO of Blockchain.com, has predicted that crypto market cap will reach $9 trillion in the next five years
• Smith also remains optimistic about the future institutional adoption

Peter Smith, CEO of Blockchain.com, a key figure in the crypto-industry since its inception, has made a bold prediction. In an extensive interview, Smith claimed that within the next five years, the cryptocurrency market cap is set to surpass that of gold, marking a pivotal shift in global finance.

Smith’s journey in the crypto-space, beginning with the creation of a blockchain explorer and evolving into a full-service exchange and institutional prime brokerage, is a testament to his deep-rooted belief in the potential of cryptocurrencies. 

Smith’s insights on the crypto-market

Smith’s insights reveal a compelling blend of cautious optimism and realism. While acknowledging the industry’s nascent status, he is confident about its growth trajectory. 

Smith noted,

“If you draw a line through the boom and bust cycles of crypto, it’s just straight up to the right. I expect that to continue.”

The CEO’s perspective is grounded in the belief that the cryptocurrency market, though currently valued at a few trillion dollars, is still relatively small compared to global financial markets or even the gold market cap. 

He emphasized that the valuation of the “circulating market cap” of crypto is much smaller, which he considers a more accurate reflection of the market’s current size. According to him, another decade of growth before the crypto financial ecosystem reaches its full potential can be expected.

Need for improvements

He identified two critical needs for the industry to achieve this scale – Increased ubiquity and improved marketing to overcome the industry’s notoriety for disasters and greed-fueled blowups.

When asked about the major drawbacks, Smith reflected,

“The history of crypto is kind of defined by our gigantic blowups, which are mostly fueled by greed, and so I think as an industry, if we want to be long-term successful, if we want to truly build a global financial system for the internet we have to learn to be less greedy, we have to think more long term, and we have to be a lot more rigorous about calling out people and companies in our space that are not adhering to that vision and very clearly separating them.”

Is it too soon for institutional adoption?

Despite challenges, Smith is optimistic about institutional adoption, though he believes it hasn’t fully materialized yet. In the said interview, he argued that the presence of institutional products in the market is different from actual adoption.

However, he agreed that once these institutional products demonstrate successful performance, it will lead to institutional adoption. He also went on to predict a $9 trillion crypto-market cap within the next five years.

As for the U.S. market, Smith lamented the lack of regulatory clarity. Even so, he remains hopeful for more concrete frameworks in the next few years. Finally, he noted the importance of political dynamics in shaping the industry’s future and the need for a more unified pro-crypto stance across political parties.