The Trading Value of Cryptocurrencies Could Soon Surpass Apple’s
Jens Nordvig, the founder and CEO of Exante Data (a company that is dedicated to analyzing and predicting economic fluctuations) and a well-respected strategist in the field of investments, predicts that the daily trading rates of cryptocurrencies will soon surpass that of Apple’s. The trading volumes of Bitcoin and Ethereum, the leading brands of cryptocurrencies, have grown about 8 times larger since its inception in early 2017. As of present, the average trading volume of cryptocurrencies has reached approximately 3 billion USD daily, while Apple’s trading rates are at 4 billion USD per day.
Nordvig believes that should the trends continue; the currency trades of cryptocurrencies are likely to soon surpass that of Apple’s. He believes that the $1 million difference can soon be breached and overtaken. However, it should also be noted that Nordvig is hesitant to confirm electronic currencies as a possible alternative to fiat ones.
Cryptocurrency is Booming
An analytical report written by Nordvig states that “cryptocurrency trading volume is now more than 3 billion USD per day, and is likely to surpass that of the world’s most liquid stock: Apple.” This rapid growth in trading volume is mostly caused by the main players of digital currency: Bitcoin and Ethereum, wherein bitcoin had grown five times its starting price since the start of the year. This growth, however, was stunted when word arrived that China would disallow digital currency exchanges. JPMorgan’s CEO Jamie Dimon’s statement calling bitcoin a “fraud” is also likely to have a role to play in the price drop. Taking into account its spikes and its falls, it remains a fact that bitcoin has grown nearly thrice the price that it started 2017 with.
The Growth Continues
Well-known brands like Bitcoin and Ethereum aside, cryptocurrency as a field is rapidly growing. A week ago, digital currencies’ total market cap was approximately 120 billion USD, which is considerably lower than its value during the early summer: 180 billion USD. While Ethereum, for the most part, trades a relatively cheap price of 250 USD per token, it is important to note that this is 25 times larger than its original price at the start of 2017.
During the same time that digital currencies sprouted into popularity, the average daily trade volume for US stocks has dramatically declined. CNCB states that this drop that occurred in August was the lowest level the stock exchange had been since the past three years. Although at present, the obvious preference of people towards cryptocurrencies prevails, Jens Nordvig hesitates to claim that digital currencies will certainly be able to completely replace fiat currencies in the long run. Nordvig states that it cannot be ascertained that cryptocurrencies will rise above and gain status as an alternative to traditional currencies.
Due to the unpredictable nature of cryptocurrency interventions, such as the involvement of the government and other large, influential companies, it is difficult to accurately predict the future of cryptocurrencies. But if one thing is for sure, it’s that the value cryptocurrencies is growing at an alarming rate.