There has been a lot of speculation (what else right?) about whether cryptocurrencies are reaching a peek and whether there really is a ceiling. A huge milestone will be met when the total market cap of cryptocurrencies is at $1 trillion. Until then though, there are a ton of articles – just like this one – that discuss whether cryptocurrencies are reaching a peek.
Around Christmas, there was a beautiful discount in cryptocurrency prices that looked scary for so many people. Basically, a simple holiday pullback that allowed for people to buy in the dip. But again the question is: will Cryptocurrencies ever reach a ceiling as a whole?
If you read the tweet of ambitious and futuristic people like John McAfee, then you are talking about waiting until Bitcoin hits 6 or 7 figures, before starting to meet a ceiling of some sort. But if you read the editorials of crypto geeks, then they are looking at maybe high five figures in the bitcoin price (with the other cryptos following behind.)
I think the question “are cryptocurrencies making out” is the same kind of question when someone asks of the stock market, and whether it is overpriced. It’s a very subjective question: are we talking about maxing out based on the idea that the number of people climbing in is slowing down, or are we talking about the future of cryptocurrencies not looking bright? Each reason will get you a different answer. Cryptocurrencies will still be “cheap” when there are phenomenally higher returns to be expected. Think of Bitcoin when it was trading at a few cents: once it hit $10 there were a lot of people that were wondering if that was it for Bitcoin, and yet we see it currently trading at 5 figures.
I think there will be some ceiling for some coins, but as long as people are getting out of traditional forms of investment (gold for example) and entering those funds into cryptocurrencies, then we are just talking about re-distribution of existing funds. And we haven’t discussed yet the possibility of investments crawling in, creating even more wealth.
In any event, you can always bet on successful ICOs to allow for a home run swing. My favorite one is Rentberry: a company that wants to create a decentralized platform for tenants and landlords, so they can manage their payments online but also allow for crowdsourcing of rental security deposits. You can learn more here: https://rentberry.cryptonomos.com/