A few days ago I wrote my first post about Ethereum Classic (Ethereum Classic: Finally Starting to Pay Off).
At the time of my previous writing on April 22nd, Ethereum Classic (ETC) was at $30. Now, as of May 4th, which is about 10 days later, ETC is at $75. This type of growth without any announcement is absolutely insane.
Maybe my price target for ETC at $250 by 2025 was too conservative. It went from $30 to $75 in a week.
To me, this idea is a bit aggressive and assumes a lot. But, it should give you a sense of the potential people feel for ETC as a growth asset class.
The most major assumptions in the article are:
Bitcoin (BTC) will own 50% of the total crypto market share
ETC will own 25% of the total crypto market share
And the total crypto mark share could be 50% the price of gold market cap
The market cap of gold is currently $9T and under the assumption of a 2.17% inflation growth over the next 10 years, Gold is expected be $12T in 2030.
But by the way North America, Europe and the rest of the world have been printing money, I assume inflation growth will be much higher than 2.17%.
People are going to look into alternatives than Gold because the Crypto asset class is emerging as the new age technology.
Few truly understand that crypto is new age money.
Better than gold. More programmatic and mathematic compared to controlled by people in charge of the money supply.
The global crypto market cap today is $2.25T (CoinMarketCap) which is already almost the Gold market.
BTC has the largest market cap with $1,028,286,564,693 or $1T :) Currently 1/9 the market cap of gold which has the $9T market cap.
ETH or Ethereum has the second largest market cap with $381,142,576,182.
Other cryptos are much further behind with the third being below $100B market cap.
What’s crazy is that Dogecoin, which is essentially an Elon Musk meme coin is the fourth largest crypto market cap at $79B.
Elon played a large role in hyping this coin to the fourth largest crypto coin in the world simply by posting insane memes like the one above.
ETC is the 21st largest crypto, with a market cap of $8B.
Given that Doge coin is essentially a meme with no real thought behind it and is the #4 crypto in the world, we can tell it’s the wild wild west in crypto land right now.
ETC is owned by Grayscale, the largest crypto asset manager in the world. Grayscale does not own Dogecoin.
Grayscale is big supporters of ETC and the investment fund has even created the ETC Cooperative to support the ETC blockchain.
The largest crypto asset manager in the world, in a time when crypto has been booming, is betting on ETC.
Grayscale was the most right on crypto booming. Bitcoin is their largest holding.
Grayscale has 650,000 BTC under management with a total value of over $36 billion.
So if Grayscale is big on something, it should mean something.
Since Grayscale is big on ETC, it keeps my conviction high not to sell my assets at this price as it’s early on in the crypto market and I think things will continue to grow.
If BTC eventually becomes worth 50% of the price of Gold in 10 years, which would be a $6T market cap assuming Gold at $12T, than it’s not impossible to think that other layers of the crypto world may be another percentage of the total crypto market like they are today.
ETC at #21 in market cap vs. Dogecoin at #4 in market cap.
I think that ETC will pass Dogecoin one day and be recognized as a true asset while Dogecoin will be just a meme in the blip of time in the overall legit crypto market.
There will be some major winners of this crypto boom. True winners.
It will certainly be like the internet wave.
I think Dogecoin may continue to be popular, but I don’t think it will last.
Eventually the crypto market will correct and ETC will pass Dogecoin and be seen as a truly good long term investment.
The largest crypto asset manager thinks so. I have no doubt that BTC will pass gold one day in market cap. The question is what are the next few large assets with it.
Ethereum (ETH) is the second and will largely continue to be that way as it has complete mindshare behind BTC.
But Ethereum Classic has a similar heritage to ETH and I think that will benefit the currency from a branding perspective. It also has very smart engineers working on the project and a capped supply of 210M ETCs just like there can only ever be 21M Bitcoin. There is no supply limit of Dogecoin which has 100B coins outstanding and 5B more created every year forever. These numbers are insane.
Dogecoin has no one actively working on it.
For ETC, there is a group called ETC Labs that is actively working on projects for it but I honestly don’t think they are very legit.
Regardless, I’m keeping my ETC here at $70 and I will hold on. I think it’s a legit project that legit people in the industry believe.
We’ll see what happens in the coming months. But I think it might be here to stay.