Welcome to crypto 2022, it’s a new year and it’s game on now, despite the huge volatility crypto had yet another amazing year in 2021, growing 187 and crushing the performance of every other major asset class for yet another year running. The big question now is: how high can the crypto market go this year, and that is the topic of this video now, the main thing everybody is still trying to figure out is: what is the true value of the crypto market? Is today’s price, fair value? Should it be two times the size five times a hundred times? Well, one of the best ways to try to figure out something’s value is to find the right thing to compare it against it’s all about finding the right comparison.
So, first up we’ll compare it against crypto assets themselves and i’ll show you the top 20 cryptos, like you’ve, never seen them before. We’Ll then compare against the major asset classes, the major currencies, the largest companies and then finish with gold and from there we can then speculate on whether the market is overvalued, undervalued and just how high can it go in 2022? As always, if you do enjoy anything in the video, then drop a like always appreciated. Okay got some great chance to show you guys and the first one is one of my favorites as i’ll show you, the top 20 cryptos, like you’ve, probably never seen them before. Ready, let’s do this first up, crypto assets themselves and the first stop is coin market cap and i think most people watching this video will have been to coin market cap, which lists out all the 16 000 different crypto currencies by market cap – and this is pretty Much how most people are viewing crypto currencies and take a look at the top 20
It’S just a big page with lots of numbers and digits.
However, this isn’t the best way to take a look at the top crypto assets. What i’m gon na do now is i’m going to grab the biggest cryptos and i’m going to sort them by market cap. But this time in a picture – and this is how coin market cap would look like if we just sorted it by market cap and as you can see, this shows a completely different picture of the crypto market. In fact, i think most people watching this video have never seen the top kryptos looking like this, because what it points out is that bitcoin and ethereum are the crypto market. If you were to remove bitcoin and ethereum, there really would be nothing left now.
Look just how small these top 10 cryptos are, and this actually goes on remember, there’s 16 000 different cryptos, but once we get to about 10, they virtually disappear into nothing. So you could say bitcoin pretty much still is the crypto market, which is why, when i analyze the market, i pretty much use the bitcoin chart because what’s bullish for bitcoin is bullish for the entire market and if bitcoin were to crash this whole thing comes crashing Down and for me, looking at price charts on avax or dots or matic is pretty much pointless. They really do not make a difference, and the key takeaway is when it comes to the crypto market. I’M hyper focused on what is going on with bitcoin next comparison to the major asset classes and again this is one of my favorite charts, as it really shows. If there’s room in the crypto market for growth, you see global bonds sits about 120 trillion.
Global stock. Sits at about 100 trillion gold market sits at about 10 trillion and crypto right now is still under two and a half trillion. So i’m always looking for green flags or red flags, and this shows to me that crypto can definitely double or triple in the year to come. There’S still plenty of growth in the crypto market, so in 2022 it could easily double or triple from here next up. How does it compare to the global currencies – and here we have bitcoin compared to the largest fiat currencies in the world by market cap, so we can see the biggest currency by quite a margin is the chinese yuan.
Then we have the global reserve currency, which is the us dollar, which is valued at 450 million bitcoin. Next big is the euro japanese, yen and the british pound being the top five and to find bitcoin. We have to go to position 14, giving a market cap of about 19 million bitcoin so could bitcoin double, but that would take it let’s round it to 20, so to double. We’D have to get to about 40, which would be the size of the australian dollar and to get to 60 you’re looking at the size over the indian rupee, but because bitcoin is potentially a global monetary system, you could easily compare it to the united states dollar And you can see there’s plenty of room for bitcoin to double or triple and still be way under the united states dollar, so i would say green flag that bitcoin and the crypto market can double or triple from here next up, let’s see how it compares against The largest companies in the world – and here we have bitcoin versus the biggest companies and assets in the world by market cap, so number one being apple, and this sits at around three trillion dollars. We’Ve got microsoft at two and a half trillion alphabet, two trillion tesla’s at one trillion and bitcoin is higher up on here compared to companies.
It would be in position eight now. For me, this isn’t the best comparison as bitcoin isn’t a company but a global monetary system. So this one isn’t the best comparison, but it is quite cool to see how bitcoin compares to the biggest companies. Another great comparison. People like to use is comparing bitcoin against gold, and gold is around the 10 trillion dollar market cap bitcoin is sitting just under 1 trillion so again a green flag, so bitcoin can double or triple and still be way under gold market cap.
Now some experts say that this isn’t a true reflection of gold as there’s a lot of central banks that hold gold off the market and also a lot of jewelry, but this would still bring gold to about 5 trillion. So this comparison still stands. Bitcoin can still double and triple and still be quite far under gold’s, true market cap, so again a green flag and then, let’s not forget growth. This is crypto’s growth rate versus the internet, and you can see it’s now growing faster than the internet did back in 1998. So it’s going to be another explosive rate if things carry on for crypto in 2022, so again, another huge green flag for 2022 in the crypto market, so some very interesting comparisons and charts.
So what conclusions can we draw from the data? I do think that crypto can easily grow a hundred or two hundred percent again this year. But what makes this year so challenging to navigate is the catalyst that could also crash the market. I am a crypto bull, but we can’t ignore the fact that there are some catalysts that could throw a spanner in the crypto works number, one being some large negative regulation from the us on stable coins or d5 number two. This is the pandemic right now and we’re seeing a huge spike due to omicron or we could get yet another variant later in the year.
This is the stock market right now and to me this looks really high and we are overdue, a big correction or we could get another unknown event which would be well unknown. So, in summary, if crypto is left to run and there’s no crazy us regulations that come out, there’s no new scary variant that causes a collapse and there’s no major stock market crash. Then things look great for crypto, a hundred percent or 200 percent is easily doable, and this means that the crypto market would crush every other major asset class another year running. However, i do think it’s going to continue to be crazy volatile, which is why i have my rule-based investment plan, but the way i see it is this: if you want safe, steady, smaller gains, then just invest in a broad-based stock market index fund. However, if you want to be in the game of hundreds of percent gains, then you’re gon na have to get used to crazy volatility.
Epic runs huge crashes and all the fud in between big gains come with big volatility, so there you are guys hope you found this interesting. I will be publishing all along the way through this crazy journey of 2022, but for now just to say, if you did enjoy anything in the video, then drop a like and a big. Thank you to everyone who does if you haven’t yet subscribed, click below and join us got some great videos coming up that you don’t want to miss. Okay, cheers guys thanks for watching and i’ll, see you in the next video bye for now, [ Music ], you