Prominent economist Fred Wilson claims that crypto industry has become an integral part of the world economy. The industry has taken away a significant portion of capital from traditional assets such as gold.
According to Wilson, Crypto and blockchain are the only sectors that have taken advantage of the Coronavirus pandemic, the CEO of Union Square Ventures. While other industries suffered the most from the pandemic, the crypto industry witnessed enormous growth.
Growth of Tech-based Sectors
Many digital and tech-based entities have also shown outstanding performance in a period of confusion. For example, video calling firm Zoom and the majority of electric vehicle manufacturers have also benefitted from the pandemic.
It is just due to Coronavirus that Bitcoin has got people’s attention at the mass level and has resulted in worldwide adoption. Institutions are now willing to buy the top digital asset at a price tag of $30,000. Wilson said:
“Odd as it may seem, a lot more people want to buy Bitcoin at $28,000 than wanted to buy it at $5,000. That’s just how things are. And it is important to understand that. “
According to Wilson, the new trends emerge from pandemic proliferation and will continue to dominate even after the pandemic. The pandemic may come to an end in the Q2 of 2021 as COVID-19 vaccine has come in the market.
Wilson explained that governments and central banks would print more cash to combat negative economic forces. The government will also try to save old dying companies while people will inject their money on new objects such as crypto assets. “This will lead investors to continue to allocate capital to new forms of money (crypto,” he added.
In 2020, we saw many breathtaking projects, which are decentralized in nature. These decentralized projects include Yearn, Compound, and Uniswap. The trend of rising innovation will remain to continue in 2021.
This year, there are strong chances that regulators may regulate the sector and will design policies to curb unnecessary crypto projects. Major projects like Bitcoin and Ethereum will continue to disrupt the global economy.
As of press time, the global crypto markets’ market capitalization is standing at $940 billion. In a day or two, the market cap may exceed the figure of $1 trillion. Similarly, the market cap of the top digital asset is standing at over $652 billion.