April 25, 2018
by Sharon Moran
A recent survey conducted by Thomson Reuters has shown that over 20% of the survey participants are considering trading cryptocurrency over the next 3-12 month timeframe. The survey was given to their existing client base consisting of over 400 financial firms.
From their press release, “Cryptocurrency is still a relatively small part of the trading market, but this survey indicates this niche segment is starting to enter the mainstream of the financial services industry. This is a major change from a year ago,” said Neill Penney, co-head of Trading, Thomson Reuters.”
If that 20% rate can be extrapolated out to the larger ecosystem of institutional investors, then billionaire Mike Novogratz’s prediction that cryptocurrency market cap will reach $2 trillion in 2018 is increasingly likely.
This is welcomed news to individual cryptocurrency investors. Cryptocurrency traders can devise systems to profit, regardless of the market, but cryptocurrency investors are largely dependent upon the mass adoption and technological promises that a decentralized system offers.
If bitcoin maintains the same level of market dominance it currently has when the cryptocurrency market cap reaches $2 trillion, bitcoin could reach a price as high as $50k or more. Long term, we’re likely to see more than a limited 20% of financial firms entering the cryptocurrency market. When the remaining financial, firms follow, bitcoin might very well reach Hal Finney’s lofty prediction of $10 million shown below.