How Big Can Digital Assets Truly Get?

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We are conditioned to view numbers that we can understand. This is something that is no secret.

To the average person, a trillion dollars is something that is really outside our grasp. Actually, for the majority of us, even imaging a billion dollars is too difficult. We can try to conceptualize it but we really do not have a frame of reference.

Nevertheless, understanding what is taking place if vital. We are embarking upon a completely new Internet. Which brings up the question, what is the present one worth? That is a guess at this point but it seems likely that around $50T could be an accurate guess. With all that takes place online, we are seeing more of our global economy shift to this medium.

Nevertheless, as they say, "you ain't seen nothing yet".

The new Internet is going to be, as Raoul Pal likes to call it, the "Internet of Value".

You see, something interesting happened along the way. Through the tokenization process, we are able to monetize the activity that takes place. Not only that, we are seeing collateral generated by the day. This collateral is ideal in a sense in that it has a transparent, ongoing value (mark-to-market) that is traded on open markets. This make for a more fluid economic system.

We are going to see projects worth hundreds of billions of dollars. Of course, over time, that will drift into the trillions. The growth rate of the digital world is too big a multiplier.

Decades ago, having companies that were worth tens of billions was a big deal. Most operated in a local capacity, restricting their reach. Over time, that scope expanded, with more companies becoming "international". These entities were able to leverage their size to become even bigger.

Yet, that was a drop in the bucket compared to what we see today. The largest companies in the world, Microsoft, Amazon, Google, and Facebook, all operate in the digital arena. They are able to grow at a much faster rate while entering markets very rapidly. For most of them, the distribution of their product is not done physically. This reduces the cost, sending profits soaring.

They also have potential customer bases that reach the billions. This equates to a lot of money.

Here is a chart of the top companies looking at 5 year intervals.


Source

Notice the shift that took place. Traditional industries like energy, banking, and retail were in there 20 years ago. Now, it is all technology companies.

Also, this ends 5 years ago. We know that Microsoft and Apple have $2 trillion market caps. Amazon and Google are over $1T.

It is no secret this is where the power resides. Banking, often thought to be an extremely influential in its own right. In 2006, Citi was worth $273B; today it is at $154B.

This is just an example of how FinTech did a number on the banks.

With tokenization, we see another seismic shift starting to take place. Just like the introduction of evolution of the Internet provided a 10x, we will see something much larger this time.

Our progress is still stifled by the centralization of innovation, power, and resources. This could be turning.

We already see a market cap of more then $1.75 trillion on Coingecko for tokens it lists. This, of course, is just portion of what is taking place out there.

The recent NFT craze saw some serious numbers being tossed around. Couple this with all the smaller priced activity, and what do you get? While a factor not yet truly accounted for, we are likely already into the tens of billions (if not hundreds).

Make no mistake; there will be failures. What looks strong today might end up as MySpace. That is the nature of emerging industries and technologies.

However, the potential that exists is greater than anything humanity ever saw. The impact of the Internet is about to be 100X through the next phase of its evolution. All components are getting larger, faster, less expensive, and automated.

This creates a tremendous amount of economic potential.


Source

To illustrate this point, let us look at Leofinance and its recent development.

The present market cap of that project is $7.16M. This takes a total supply of 6.57M found in this post and multiplied it by the present $1.09 price.

We saw the introduction of CubFinance this week. It grew very quickly, in a multi-million dollar value. Here we see the latest stats on the project.

cubfinance.png

Between the two projects, we are now sitting at $10 million. Here is the key point: did the addition of CubFinance take away from any other project? Outside perhaps the removal of some money from the banking industry, we see little impact elsewhere. Sure, this project is not very big yet the growth DeFi in general means newer entrants can excel.

The thing to remember is this process is going to be repeated thousands upon thousands of times. Some projects will reach tens of millions; a few, hundreds of billions.

We will see the totality of it all truly explode.

Therefore, we best start to embrace another level of numerical advancement: quadrillions. This is the level where this is all going.

The global real estate market is estimated to be about $225 trillion. What do you think the virtual real estate market will be worth? As they say, they can't make more land. In the virtual world, this is not the case.

We see how the Network Effect has a financial impact. The picture of the world's richest companies all depend upon that. They grew at an exponential rate as users signed on to the platforms. Over time, they achieved previously unseen growth rates. That is until now.

Looking at this another way, if we take a linear view, there are roughly 100 million people involved at this point. With a planet of more than 8 billion people, all of whom will be connected to the Internet in the next 5-7 years, we can see a growth rate, from a user perspective of 80x.

Just looking at the market cap of the tokens listed on Coingecko, we come up with $140 trillion. This include NFTs, businesses tied to this industry, or anything that site does not provide a value for. Yet, we know there is already billions more in value out there.

The other thing is we know that Network Effects do not have linear impacts on value. Instead, that growth rate is exponential. How much so is up to debate but we know it exists. Thus, the $140 trillion is not accurate since it does not factor in the Network Effect.

Thus, when this industry matures, we are going to see the numbers in the quadrillions. This is a vital point to drive home. When looking at a project, understand that 100x or 1000x is very possible. This is because our limited thinking about numbers stands in the way.

Each day more tokens are being created and distributed. This means bags are filling up, many of which will get more valuable over time.

And that is the epitome of exponential growth in value.


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39 comments
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Bang, I did it again... I just rehived your post!
Week 48 of my contest just started...you can now check the winners of the previous week!
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well we did love our dinosaur juice at the begging of this century if you look at how many oil companies were in the top 5. Good thing we're starting to move away from that.

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The oil companies were surprised by tech but do not think they are going anywhere. All the stuff you hear and read about the demise of oil, what are you viewing it on? Computers, phones, and televisions as well as much around us is still petroleum based.

A 1%-2% move into electric cars and some shift to renewable energy which still requires the purchase of fossil fuels is not really making a dent in that.

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I'm not saying the oil companies are done but at least we are making progress towards electrification and sustainable energy sources

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These huge companies with the billions have established a mainstay, when I look at the current projects in blockchain and Crypto it's easily for them to accurate hundreds of billions overtime. Look at cub finance in just seven days, imagine th cap in about a year's time

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Look at cub finance in just seven days, imagine th cap in about a year's time

If it keeps growing and developing into a viable project, it can be huge. That is the key. So many focus upon the financial aspect of things they overlook growth completely.

Of course, with Leofinance's track record, it is likely to continue.

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Yeah, slowly and steady, I think there's no need to hit all these outrageous numbers really quickly. The focus is to see exponential growth.

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I prefer P/E ratios and dividend above market cap to determine the stocks I buy.

I wonder whether the googles are gone in 10 years or not. Like AOL, Netscapes before.

Some of the 6000 crypto and or tokens will also be gone or worth zero! That is for sure.

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Some of the 6000 crypto and or tokens will also be gone or worth zero! That is for sure.

That is true. Not all projects will succeed. Of course, that 6,000 will turn into 6 million (or more) over a decades time.

As for Google and the likes, it will be interesting, Adaptation is key. Not sure which ones will adpat and the ones that wont.

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After reading the article, I tried to imagine the volume of $ 1 million and I didn't succeed. 1 is generally incomprehensible to me at the moment of my perception. Then I remembered your introduction,

To the average person, a trillion dollars is something that is really outside our grasp. Actually, for the majority of us, even imaging a billion dollars is too difficult. We can try to conceptualize it but we really do not have a frame of reference.

and I must say that you were 120% right.

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Yeah it really is something that is beyond the comprehension for people. We get mired in our mindset and what we know.

We truly need to expand our thinking with all that is taking place. A lot is going to change over the next couple decades.

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We truly need to expand our thinking with all that is taking place.

This is what I'm doing at https://leofinance.io/ - exploring the world of finance, which I have ignored for a very long time. Thanks to you and other content creators, thanks to you there is a lot of useful material to explore.

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Two Billion I think I will die and will never achieve something like that I will dream.
The internet of value, wow that's very new to me, how much is the data that is housed there, well, just look at facebook twitter yahoo google and all those to know what we are talking about.
Yes of course we are on the rise but friend 10 Million that is a lot and part of our funds were created good part of nothing I am talking about not physical money but time and effort. this is great.
If the banks should be worried or they make an effort and enter or maybe we are taking a small piece of their income from them, now we have decentralized savings without having to depend on anyone wow that is wonderful.
The world of defi is already within our reach and it is wonderful, thanks to kal who has made us come and learn as much this week as ever.

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Hello friend, I miss your post, but the most important thing is that you are fine as I see it.
Take care

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It's really difficult to foresee about the valuation of any digital asset for me in such a hectic era. However, the prices of LEO and CUB remind me the early days of these giant tech companies. Regardless of the current market cap of these hidden gems, I feel better while increasing the amount of tokens that I own. This is priceles...

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Wow, that is a pretty big shift. I'd be interested to see who the top companies are now. I am actually a bit surprised to see Walmart fall out of the top and not retain at least some position. They have been going heavy on the digital side of things and have really cranked up their online presence over the past couple of years. I thought for a while they were the biggest competitor Amazon had.

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Walmart is a new entrant into the "tech company" field. They have gone heavily into it yet they do not have a huge presence as of yet. It will take then another 5 year at a minimum before it really starts pushing huge revenues through the company.

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I think we have a much greater opportunity than all of those companies that you mentioned above
Let's look at an example. She was able to do this market cap in more than 20 or 15 years, while in the world of crypto we managed that in five years

Another point is the number of clients or visitors they have tens of times. If we are equal in the number of clients, we will surpass them by a lot

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I think we have to be patience as you said vision 2025
After 5 years we could make a big difference in the global market

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How Big Can Digital Assets Truly Get?

Not that big.

All of your indicators and measures you have used are all false.
Its all money printing.
No real wealth is being created.
And at some point it will all go *poof *

And then, digital assets will get into the mainstream
Their value will be much more based on their value

However, it will be a LOT lower
Kinda like a pink slip for an old car. The new digital asset will be the same value as the pink slip. (but easier to transfer)

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When I look at the worlds richest corporations, I can only see the the big tech companies that I don't trust to do the right thing for me. I think world changes so fast and 100x or 1000x is already happening in the market. Also you don't need to focus on all the opportunities in the market, you only got to choose one. If you find a good opportunity and it blooms 100x, you will have made it. Thus I see HIVE and LEO to be fairly good given the current state to be a 100x.

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How Big Can Digital Assets Truly Get? That's fun to think about!

The current worlds estimated GDP is 80T, so my guess would be that, 80T..lol

If there's a possibility that nearly all economic activities moved digital than that's my guess. Assuming the GDP grows and in the future that 80T isn't 100% of the GDP, as there's may always be some non digital value in the economy..

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Automation and other technological advancements will push the GDP (if you use it as a metric in the future) up by a huge magnitude.

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Virtual economies will fit in nicely with the incoming automation boom. And you and I both know Govt won’t fix the income gap that is occurring world wide.

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Government only enhances it. Whatever the political system, it is full of politicians. They support those that will keep them in power, since reelection is all they really care about.

Fixing problems is not what government does. Creating is more their excellence.

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I like reading your posts, most is way over my head. I like reading what you believe may happen in the future, It will be amazing to see.

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Lolo. My head was in the same space last night working out numbers with the Leo money bridge. How many billion could pass over it with a fee of 0.5% was what was going through my head. $1 Million generates $5000 in fees for Cub and Leo to be burned and start adding zeros and things start escalating rapidly. A trillion is nothing in the digital world and we haven't even got warmed up yet. I think I read somewhere that BSC had over $170 billion in transactions last month so what is $1 billion today?

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By the look of it, much bigger than what we have right now. One thing for sure, things will move to a new territory that is unthinkable a couple of decades ago pretty quickly. As you said, we need to broaden our baseline and threshold to incorporate those changes.

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damn that image says it all. in 15 years a lot changed and i am really curious to see the next 15 years ahead. Will tech remain? are we gonna see blockchain and cryptos there or something new? or that are under the tech umbrella?

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IF we count in stocks market ( is also digital) the potential is 100x bigger :D

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I can't really imagine the big value of those company. And how they eveolded in the recent years.
But at least I am happy to part of the Hive, Leo and CUb journey, whereever and when ever we can get into a billion dolalr industry. While those company are owned by a small number of person, hive will belong to any of us having and account and getting a hand on the blockchain

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