Tuesday, September 12, 2017

Backing cryptocurrencies with assets could raise market cap to $5 trillion by 2025

While the unbacked cryptocurrency known as Bitcoin is still king in the virtual currency sphere, more and more cryptos are emerging that offer a resource or asset backed foundation.  And whether it is with gold, diamonds, or in the case of LAToken, all assets imaginable, the future of asset backed cryptocurrencies could raise the market cap from its current level of $165 billion to over $5 trillion within the next eight years.

LATokens research team, formed by Deutsche Bank and McKinsey alumni, prepared the first LAT Crypto Research, outlining that total market capitalization of cryptocurrencies can reach $5 trillion by 2025, with asset-backed tokens driving the growth. To read the full report, follow the link, and we’ll share the highlights with you in this post. 
Cryptocurrencies market capitalization has surged by 830% from last August, reaching $165 billion. The adoption rate of cryptocurrencies may be as high as that of cell phones and broadband Internet, thanks to advantages of blockchain, such as low transaction costs, security, transparency, ease of cross-border transactions etc. 
According to LAT Crypto Research, market capitalization of asset cryptocurrencies, also known as asset-backed tokens, can account for at least 80% of the total market by 2025. As their value is linked to asset prices, ranging from equities and commodities to real estate and works of art, they combine the benefits of blockchain with advantages of investing in hard assets, like greater stability. 
Today volatility of crypto markets often makes investors reallocate funds from their crypto portfolios back into fiat and hard assets. Asset cryptocurrencies provide them with an attractive alternative of getting the same exposure while saving costs of conversion from crypto to fiat. They may become indispensable for crypto portfolio diversification. – Crypto Coin News
In addition to growing the overall market cap of the industry by 2025, trade of asset backed cryptocurrencies could also grow to become a $40 trillion per year market as the advent of the blockchain and tokenization comes to replace antiquated platforms that run paper assets like stocks, bonds, and options.

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