Bitwise Chief Investment Officer Matt Hougan stated that cryptocurrency critics frequently underestimate the massive market opportunities involved, according to a Monday report.
Hougan highlighted that Bitcoin (BTC), possessing a $2.3 trillion market capitalization, is often analogized with Amazon (AMZN).
However, whereas Amazon's value derives from daily usage by millions, Bitcoin's worth originates from competing with gold—a $25 trillion asset class. The report indicated that securing under 10% of gold's market share would validate Bitcoin's present valuation. Conversely, a startup aiming to displace Amazon would need to capture its entire market.
Bitwise emphasized this principle extends to Ethereum (ETH), Solana (SOL) and other blockchain networks, which are positioning to manage payments, settlements and tokenized assets.
The report observed the global payments industry processes $1.8 quadrillion yearly, while the aggregate value of stocks, bonds and real estate approximates $665 trillion.
These colossal figures contextualize why Ether trades near $500 billion and Solana around $100 billion. Hougan contended that decentralized platforms can realistically capture portions of these enormous markets, unlike centralized corporations.
Hougan also referenced Tether (USDT), reportedly considering a $500 billion valuation. Initially, comparing Tether to entities like OpenAI or SpaceX appears unreasonable. Yet Tether already leads stablecoin adoption in emerging markets, and if USDT supplants local currencies in certain nations, its assets could reach trillions. At that scale, Tether could exceed even Saudi Aramco's record $120 billion annual profits.
The report concluded that for investors, the crucial insight is that cryptocurrency isn't pursuing minor opportunities but targeting the world's largest addressable markets.