Former Goldman Sachs fund manager Raulpal Has been updated An important chart that compares cryptographic adoption with Internet adoption. Charts shared through his Twitter account try to show the pace at which technology has reached a fixed number of users at the same time.
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Internet charts will start in 1992 and cryptocurrencies will start in 2016 when both Bitcoin and Ethereum were in operation. At that time, both technologies had 5 million users.
As can be seen below, the chart shows that it took only six years for crypto to raise the level of recruitment to attract 295 million participants. During the same period, the Internet saw less than half of its growth, which reached 119 million by 1998.
Pal claimed that while the Internet saw 76%, crypto experienced 137% growth during that period. 2021 was a major turning point in digital asset adoption, probably driven by the COVID-19 pandemic, increased demand for digital payments, and unconventional forms of investment. Pal said:
2021 is a year of accelerating growth, and the effect of Reed’s law that networks built on networks become more exponential is clear (…). As I always say, this is the fastest technology adoption the world has ever seen …
In addition, if the sector follows the slowdown in Internet growth, Pal forecasts 1.2 billion digital asset users by December 2025. “Assuming the growth rate of the Internet over the first six years,” he added, the indicator could reach 2.5 billion users.
Forecasts are more optimistic each year. A former Goldman Sachs executive said:
Using a growth rate of 76% (suggesting that network growth will almost halve as the network matures), we will reach 5 billion users by 2030. In short, it is the primary source for owning, transferring and recording global values and terms of contact. Oh!
What’s Behind the Adoption of Cryptography
The “explosion” of use cases and better applications is driven by blockchain technology. These are two main factors that helped users jump into this space, according to Pal.
In the digital world, Moore’s Law and other phenomena are driving all costs to zero.
But blockchain has changed it all.Created a verifiable and immutable digital shortage, allowing for an explosive increase in use cases at layer 1, layer 2, and application layers.
— Raoul GMI (@RaoulGMI) March 12, 2022
Former Goldman Sachs executive and founder of Global Macro Investor (GMI) has proposed a formula for predicting the impact of increased recruitment on the price of digital assets. You can get an estimate of future price performance by multiplying your daily trading volume by the number of active users.
Pal used the Bitcoin chart as an example. As shown below, as shown in blue, there is the price of BTC from 2010 to the present and the potential value of applying this formula.
The Ethereum, Polkadot, and XRP charts seem to fit the proposed model. Over the next few years, as the adoption of digital assets continues to grow, Pal predicts that tokens with combustion mechanisms (ETH, BNB, LUNA, etc.) may outperform the market.
Similarly, ETH will be larger than BTC and can be a larger asset in terms of market capitalization. As Pal said, this event may not be important given the different characteristics of both networks. He added:
But if the network continues to produce network effects, log regression channels are still a good way to predict the future … Assuming the BTC remains one standard deviation below the trend, a price target of $ 600,000 is obtained.
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As of this writing, BTC prices have been flat for the past few days at $ 39,035.
