Raoul Pal: There is a 'reasonable possibility' of cryptocurrency market cap growing to $250 trillion by 2030

Former Goldman Sachs hedge fund manager Raoul Pal, CEO of Real Vision, thinks cryptocurrencies could grow 100-fold in value by the end of the decade.

At the time of writing, the total market capitalization of the global crypto industry is $2.2 trillion, and Pal told podcast Bankless Brasil that there is a "reasonable possibility" that this number will grow to $250 trillion if the adoption patterns of crypto networks continue on their current trajectory about.

Pal compared current benchmarks in other markets to asset classes like stocks, bonds and real estate, noting that they all have market capitalizations in the "$250-$350 trillion range."

“I think there is a reasonable possibility that cryptocurrencies will become a $250 trillion asset class, or 100 times what they are today, and that will be the largest growth of any asset class in history in the shortest period of time.”

He added: "It would fit very well with the idea that 3.5 billion people would use it - that's just an extrapolation of the network growth numbers. So if you hit 3.5 billion users by 2030, that's a $250 trillion market. "

One thing's for sure, it's not going to go straight up. Over the past 24 hours, the total crypto market capitalization has fallen by 6.8% amid a sharp correction across most major assets. During the same time frame, bitcoin, ethereum and binance coin (BNB) lost 7.6%, 9% and 9.1%, respectively.

The recent downturn may even have taken Pal by surprise. In a Dec. 27 interview, the investor predicted that Bitcoin would get off to a strong start in 2022, as he saw institutional sell-offs and year-end profit taking. The period of throwing up is over.

"They seem to be over because the market has been choppy for the past week, and this past week was historically the last week where everyone was sorting their books," he said.

In November, Pal predicted that this round of bull market will not end in December like 2015 and 2017, but will continue until around June. The main reason behind this, Pal pointed out, was the massive inflow of institutional money in the first quarter.

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