The biggest names in cryptocurrency are arguing on Twitter over how big the crypto market will grow. After one of the founders of Ethereum announced that cryptocurrency cannot experience 1000% growth ever again, the CEO of Binance, a leading cryptocurrency exchange, fired back.
How Much Will Crypto Grow?
Cryptocurrency markets are down. The entire altcoin market decreased by 85% in 8 months. Today, one ETH coin is worth a little over $200. In other words, the crypto with the second highest market cap has plummeted 85% from its $135 billion market cap in January 2018.
Earlier this week, Ethereum founder Vitalik Buterin took to Twitter to predict that the crypto market will stagnate. He said that cryptocurrency has failed to gain wide adoption as a currency. In the Ethereum founder’s opinion, this means that 1000% growth is no longer possible.
CEO of Binance Disagrees with Ethereum Founder
But the CEO of the world’s largest crypto exchange, Binance, does not share Buterin’s opinion. On Twitter, Changpeng Zhao, otherwise known as CZ, responded to the founder of Ethereum.
I still disagree with this. I will say "crypto will absolutely grow 1000x and more!" Just reaching USD market cap will give it close to 1000x, (that's just one currency with severely restricted use case), and the derivatives market is so much bigger. https://t.co/bvSttEeCmc
— CZ Binance (@cz_binance) September 12, 2018
In his Tweet, Buterin attempts to clarify what he said earlier. He does not say that crypto won’t grow; Instead, he asserts that crypto cannot grow at the same rate as it did in the fall of 2017, or around 1000%.
But the CEO of Binance still disagrees. Cryptocurrency isn’t just currency—though if it were adopted like USD, it would experience 1000% growth. Instead, CZ references the “derivatives market.” Later in the chain, CZ explains:
“You also can’t use traditional market size to measure the potential for new technologies or industries. If you used (and people have) taxi market size to estimate Uber’s potential, you would be off by quite a bit.”
He takes Uber as an example. Not only does Uber function as a taxi service, but Uber transforms how (and how frequently) we use taxis in the first place. It has also expanded into delivery and bike sharing.
In other words, we haven’t applied cryptocurrency to its full potential, according to CZ. Wide adoption of crypto as currency is not its only source of value.
Binance CEO Predicts Crypto Growth in the Longterm
Today, CZ is worth $1.4 billion and leads the world’s largest cryptocurrency exchange. And this cryptocurrency expert sees 1000% growth in crypto’s future thanks to the derivatives market. Ethereum is down 85% since January, but new cryptocurrencies appear every day. For example, this sports team is creating its own cryptocurrency.