The price of Crypto Exchanges has reached the highest price range in the past year, but analysts predict a future where they'll account for 10% of the global trade in fiat currencies within the next decade.
So while the current market cap of the most popular cryptocurrencies is $5 trillion, there's still room for growth. And since many people have begun to distrust traditional financial institutions, a cryptocurrency with high growth potential may be limited in its potential to earn trust in its value.
A recent survey found that 86% of bitcoin users expect the price to double to $11,000 in 2024. However, the predicted market cap for Bitcoin could be much lower. In addition, Bitcoin users hope that transaction fees will rise to offset the decrease in value.
While there are some concerns about the currency's future growth, it is worth considering that the technology behind the blockchain may continue to see exponential growth in the years to come, which will lead to a lower ceiling for the currency.
There are also fears of the price of a cryptocurrency's value doubling. While bitcoin is a popular asset, it is not the only form of payment. Aside from being a digital currency, bitcoin is often linked to other assets, such as a share in a company. The price of crypto can be affected by several factors. One of the biggest concerns is the lack of institutional backing for the currency.
Crypto Ceilings
Some say that the price of a currency's value is not necessarily related to its utility. That's partly true. Several cryptocurrencies are purely based on blockchain technology. Some of them can be used as a medium of exchange. Ethereum (ETH) and Bitcoin (BTC) are the most prominent ones. But the price of a crypto's value may be tied to the value of that asset. This is called a security token.
If a cryptocurrency has a high price ceiling, it's highly unlikely to rise in value significantly in the future. However, if a cryptocurrency's price is not overvalued, it's unlikely to become a valuable asset. In other words, the value of a bitcoin is not a currency. Instead, it's a digital asset that is connected to another entity. They are going towards the ceiling.
Historically, Bitcoin's value has risen significantly, albeit slowly. But it's still not at its maximum. Its price has fallen by over 80% since its launch. And there's still room for growth in the cryptocurrency space, and the price of Bitcoin will be worth $1.75 trillion by 2024. It is the current ceiling for bitcoin. A coin's value can grow rapidly over the next decade if it's well-marketed.
The first cryptocurrency to surpass the $5.5 trillion ceilings is Bitcoin. The market cap for Bitcoin is currently higher than its ceiling in many other currencies. But it's not going to remain there forever. But some cryptocurrencies are already far ahead of their ceilings.
These include Litecoins. These coins are considered "altcoins" or "value tokens" and aren't money. Others, however, are merely digital versions of traditional currency. Bitcoin's supply is at 21 million BTC, which, when combined with half of each block, gives the asset a deflationary component and a scarcity similar to gold. BTC has been dubbed "digital gold" by some.
The biggest question for Bitcoin is whether it will remain in the top ten by 2022. It's unclear if it will be the best cryptocurrency in 2022, but it is expected to be among the top six. But for now, it's still the best option for investors. But it's important to keep in mind that some small coins will have lower ceilings than others. The most stable cryptos will increase in price shortly.
Final Words
It's also important to remember that the ceilings are merely limitations. In some cases, they are just limits. For example, Bitcoin may not be the best crypto in 2022, but it might be the most popular in 2022. But even if bitcoin is not the best crypto in 2022, it might be the best one in 2022. It is because some cryptocurrencies are more stable and will rise faster than others.