The cryptocurrency markets are valued at more than $2trillion dollars globally and is focused within assets which have little-to-no prospect of long-term survival.
However, additional indirect exposure through derivatives and ETF’s add over $4trillion dollars of indirect exposure to this sum and is largely held by a combination of the middle-classes, institutional investors and the financial sector.
This toxic combination could leave the world vulnerable to a bust which may exceed $6trillion dollars should challenges to the future of Bitcoin and the broader cryptocurrency markets arise.
Despite the most prominent examples of cryptocurrency adoption by a few large companies, actual adoption within the international marketplace is still a niche and governments are showing more willingness to in-house the development of their own digital money projects rather than adopt anything in the public domain.
With Bitcoin’s internal contradictions now entering into play with a vengeance, the cryptocurrency bull market continues at-pace. As prices continue to rise, leverage and derivative usage continues to compound with little evidence of adoption or usage by society.
This irrational exuberance is setting the stage for a historic multi-trillion-dollar blockchain bust which could reach far-beyond the boundaries of niche cryptocurrency exchanges and strike deep into Wall St. and the international financial system.