What if crypto takes over stocks?

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the_hashMember
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#1Feb 18, 2017, 12:15 PM
What should we do if there's a good chance that cryptocurrencies might become the dominant investment option instead of stocks in the coming decades? If the crypto market hits over 100 trillion USD in market cap (based on today's purchasing power), we could see numerous coins like Bitcoin reaching market caps in the trillions, along with thousands of others surpassing a billion. Just imagine what it could look like by 2050... So, what's the best approach for investing in this new landscape? For reference, here’s a possible projection: 2026: crypto at 2.5T (with BTC at 1.5T), and stocks at 150T. 2040: crypto at 75T (including BTC at 3T), with stocks dropping to 75T. 2050: crypto reaching 100T (BTC at 5T), stocks at 50T.
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just_coinNewbie
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#2Feb 18, 2017, 01:13 PM
If we want to test this, we also need to ask one thing, what kind of thesis do you use to justify the replacement of cryptocurrencies as a primary investment instrument in the coming decades? Because what I see is that both are currently growing, with their respective market capitalizations, both in my country and elsewhere. Even if this happens, the transition to transformation will still be in effect in the activities of individuals, most people, or companies in building financial structures. The impact could be broader, where bank intermediaries may become somewhat unnecessary because someone can use the blockchain system for transaction processing. This is just my personal opinion and I'm not entirely sure whether this will happen or not. No one knows for sure what the future will hold because technology is constantly evolving and any potential outcome is possible.
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nodez241Newbie
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#3Feb 18, 2017, 04:16 PM
That could only possible if cryptocurrency is being used to tokenize stocks and the best investment strategy more likely to be the same. Stocks and crypto don't really have that much intertwined utility for it to replace each other, I could hardly see such thing to happen except stock just stepping up to modernize the way equity is distributed and proof of ownership through crypto. In the case that miraculously happens, what would be the difference between the state of the market right now compared to that. I'm sure nothing of significance, everybody is going to speculate like what they used to.
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#4Feb 19, 2017, 08:42 AM
Research and adapt with the current situation, that is you can do. If crypto still the best investment for you, you can continue but if not, you can leave it and search for others. But I think that is not happens or if that will happens but crypto will not replace stocks as the major investment instrument but will besides of stocks so people will have more options to choose as their investments. But if they knowing that Bitcoin is the best investment, they might choosing Bitcoin.
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foxlabSenior Member
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#5Feb 19, 2017, 10:07 AM
The investment strategy will essentially be the same: buy cheap, hold for the long term, and sell when satisfied with the increase. So you don't need to worry about what strategy to use if crypto replaces stocks. But I'm not sure stocks will be replaced by crypto, because investors have different views. Also, the crypto market cap is still far below the stock, even compared to Amazon, crypto is still slightly below them, it needs a long journey
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#6Feb 19, 2017, 02:52 PM
This is not going to happen because crypto and stocks are different entirely. Stocks can not be replaced because they are owned by businesses and important people in the society, and they make them relevant to the public. So do not think that can even happen at all. Like I have said, this is not going to happen, but I believe crypto one day will get to tens of trillions of dollars, but stocks are not going to be replaced. About my strategies, hold bitcoin.
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gas938Newbie
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#7Feb 19, 2017, 06:36 PM
You're in a crypto-focused forum so you'll mostly hear "best to not get left behind then". Well, that's what I'll say too and I think it's a no-brainer that we are on that trajectory, but it's not that complicated because just like other form of investments it will definitely just work side-by-side with it. Best strategy and tactics, buy and hold, buy low then sell high? Is there other good strategy than that?
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#8Feb 20, 2017, 12:13 AM
I doubt if this will ever happen. It's not everybody viewing crypto the way you and the interested people view it, as they mostly prefer the traditional way to crypto. Again, crypto has frustrated a lot of people, and most likely will do it more in the future, so I believe many people will get discouraged over time and even focus more on the traditional way, which includes the stock market. Nothing special is needed here. I am sure that the two sectors of the financial market will continue to co-exist, so it's left to investors to make their choice.
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#9Feb 20, 2017, 12:20 AM
That won't happen. We know how large the global stock market capitalization is. Currently, its total value is around $152 trillion USD, compared to just $2.67 trillion USD in cryptocurrency. That's a significant difference. And global stock market capitalization will continue to increase as investor interest grows and large companies grow. This will maintain stock market dominance in the global market, while the crypto market may also grow, but I don't think it will be able to match or even surpass it.
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#10Feb 20, 2017, 12:31 AM
I love Bitcoin, it’s made my life. It’s given me things I never thought would be possible and I will be forever grateful but it’s not going to supposedly replace stocks any time soon. To replace stocks I presume you mean one will thrive and succeed, the other will fail and disappear? Well that’s not going to happen. Both can and will coexist as major investment options. Stocks have been part of many portfolios for a very long time. Bitcoin is only just becoming entrenched in mainstream finance as part of the average persons thoughts retarding investment. What I will say though is that Bitcoin has to do much better in the mid to long term because stocks are outperforming Bitcoin for a while now. Bitcoin is barely above the 2021 ATH, whilst the S&P500 and NASDAQ are doing much better. I was actually very disappointed with Bitcoin in the last bill run. I hope to see much better in the future.
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bitxMember
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#11Feb 20, 2017, 02:25 AM
I don’t think there would come that point in time where cryptocurrency would replace stocks. They both are a different field and which ever way it takes, stocks is always going to be around as an alternative form of investment and their are a lot of them which remains an important means of investment still. But again, there is really nothing you can do rather than to take up investment in various niche, just as you can understand them and based on what is available to you as money set aside for investments.
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blockxFull Member
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#12Feb 20, 2017, 07:45 AM
I don't think that there's a need to do something out of it. That's good if that happens but stocks will continue to be purchased by the traditional investors. The crypto investments specific like Bitcoin will be in the mainstream for so long and it won't be a tough competition for it. Because those who understands it, they'll buy bitcoin over the stocks that are also soaring high.
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#13Feb 21, 2017, 08:42 PM
Look, dreaming about a $100 trillion market cap is just a fancy way of saying you have lost touch with reality.  Betting on crypto to "replace" the global stock market, which actually produces things people use, is fucking delusional. A share of stock gives you an ownership stake in a business, e.g., manufacturing, pharmaceuticals, or any enterprise that produces tangible goods and/or services that contribute to our society.  On the other hand, cryptocurrency is a digital asset that carries a different type of value from that of stock and may never be able to replace the stock market.  Both types of investment have their respective roles in the global economy and will continue to do so well into the foreseeable future.
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the_hashMember
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#14Feb 21, 2017, 09:42 PM
Very good question! My way of thinking is as following.... Crypto is a share (part) of reputation. Stock is a share (part) of business. Reputation is public, open by nature. Business is secret, closed by nature. It is far more difficult to try to figure out the value of something that is secret. Therefore in stock market most investors allocate their money only at the basis of trust and the insiders have the mountain high advantage. In crypto, the calculation of fundamental value is easier and the insiders advantage is smaller. This is not only theoretical thought - my own practical experiences in both markets assure that stocks are (much much more than crypto) like a gambling if you have no insider connections/information. Of cause, this does not mean that because crypto is such a great idea, it will surely outperform stocks some day. For example A.Schopenhauer frequently argued that because most people are superficial, things of true value—whether ideas, art, or character—are inherently unlikely to be popular.
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nova327Newbie
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#15Feb 21, 2017, 11:40 PM
I don’t think crypto will fully replace stocks. Both will likely exist together. But if crypto keeps growing, the best move is just to adapt gradually. Instead of going all in, you can balance things. Take for instance, someone can still keep money in stocks for stability while putting some into crypto for growth. It is similar to how new tech didn’t completely replace old industries, it just became part of the system. The idea is not to panic or switch completely, but to adjust and stay flexible as things evolve.
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hodlerproHero Member
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#16Feb 24, 2017, 09:53 AM
Instead of constantly imagining that Bitcoin and crypto will replace fiat, bank, gold, or stock. Why cant we imagine them all coexisting, and with each market having its own loyal investor base? Is that really that difficult? Because our preferences and tastes are different. Not everyone likes bitcoin or crypto, even as they become increasingly popular and widely adopted. OP, Its only 2026 now, what makes you so sure you'll still be investing in crypto in 2050? The next bull market is coming, and if you're not focused on accumulating bitcoin, you wont profit. I dont even think you'll continue to stick with this market, let alone anything further in the future
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just_coinNewbie
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#17Feb 24, 2017, 01:56 PM
That's still relative and it's the same as asking people who have been involved in the stock market for a long time and they'll certainly share our perspective on understanding the stock market. For those of us involved in crypto, we've learned, emotionally and theoretically, that crypto is far superior, but only limited to Bitcoin, not other coins that may not have performed as well as Bitcoin in recent years. I don't fully understand stock performance because I've never been involved and even what little I do know is based on theory, so there's probably a lot I don't know. Ultimately we'll determine the suitability based on our individual interests in both. Most importantly, we'll know our choices are based on sound knowledge, not on hype. I personally favor Bitcoin for achieving financial freedom because it's a proven asset and can be invested independently. I'm not particularly concerned about the future of both as we're not fortune tellers who can predict the future with certainty.
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#18Feb 27, 2017, 01:26 AM
No one has been surprised to see how trading of coins have a deep impact on the economy. But crypto are something different by stocks. Just to mention that the full market share of bitcoin it's just 30% of 1 of biggest world companies. The whole ecosystem can't compete. In general crypto doesn't are "companies" and in most of cases are just a medium of exchange (pretty different by a company that produces a product). It become different if you had to comply with technology itself. Improve on security would give people the choice to use crypto and not classic stock markets.
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orbitioMember
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#19Feb 27, 2017, 06:50 AM
Expect more scams to pop up, more regulations (stricter). For me, "crypto will replace stocks" will not happen, both will stay, people will just have more options, and I believe we will see more tokenised stocks where yeah you can consider it's cryptocrurency as it's already in the blockchain 1:1 pegged from actual stocks (there are already some of these now).
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the_chainNewbie
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#20Feb 27, 2017, 11:42 AM
Title is a bit misleading though. I thought in a literal sense. But there are identical threads like this lately, I mean not really about stocks but other stuff too, stating what if crypto or Bitcoin will replace this or that. They may be superior now but the other must still have their own unique charm for them to stay on their position. It is just that there are only down times for each and everything. But now, in your thread subject right there. Actually it is also possible mate. We can see crypto now being highlighted when we logged-in in our financial apps. If that happens, I will be happy for sure as a main supporter of them. If you ask me about the best investment strategy in this regard, then you need to stock up more cryptos now in your bags and then you can slowly unload or sell your stocks assets. The money can as well go in crypto. That way, you won't panic and regret less by the time crypto overcome stocks in terms of ranking.
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