According to a professor from Cornell, one that is an expert in computer science and an advocate for Bitcoin, Emin Gun Sirer, crypto will be unable to surmount a $1 trillion collective valuation until some specific requirements are met. In fact, he believes that with industry developments the crypto winter will, eventually end.
Recently, Sirer took to Twitter to say that the cryptocurrency market has surpassed $700 billion with inherently unscalable technologies”. In reference to 2017’s extremely fast and head-on bull run which caused a kind of hype-based rally. Others were sure that $1 trillion was in the industry’s crosshairs but then, as we all know, the market took a turn for the worse.
Crypto winter will end.— Emin Gün Sirer (@el33th4xor) 28 March 2019
We reached $700B with inherently unscalable technologies.
We will surpass $1T when we figure out how to scale, how to build non-custodial solutions, how to layer apps that people want to use and that bring net positive outcomes to society.
Nevertheless, Sirer is under the belief that with scaling solutions, such as the Lightning Network or Ethereum’s proof-of-stake, a surge in non-custodial solutions, thereby mitigating the risk of hacks. Viable use cases that bring ”net positive outcomes to society”, this market could finally start to rally once again.
So even though, Sier is making a case that the cryptocurrency market in need of development in the technical side of things in order to surpass the $1 trillion milestone, a number pundits have recently claimed that this may not be as it seems.
A researcher in the industry, PlanB, has recently claimed that 2020’s block reward reduction could be the main thing that is needed to keep Bitcoin above the $50,000. According to previous reports, the researcher has noted that if Bitcoin follows a linear trend that relates the stock-to-flow ratio to asset valuation, the mentioned a suspicious event that will allow the aggregate value of all Bitcoin to reach $1 trillion.
Of course, one Bitcoin being worth $55,000 seems to be a little unrealistic, PlanB writes that “from silver, gold, negative interest rate economies, authoritarian and capital control-rife states, billionaires looking for a quantitative easing hedge, and institutional investors will eventually flood into this space.”