$100 Trillion

Asset owners (or custodians) generate private keys, sign messages indicating asset transfer, and then broadcast those messages to the public so that the world can verify the scarce asset hasn’t been double spent. Each private key is tied to a public key. Where KYC/AML are necessary, public keys can be mapped to some off-chain identity system (e.g. ... See more

New economic activity facilitated by blockchains: $1-10T

Replacement for offshore bank accounts: $1 – 10T

"It’s difficult to overstate the magnitude of this market expansionary effect. For the first time in modern human history, people will have the choice of storing their wealth in state-free money as opposed to their local fiat currency. Weak governments will collapse, causing mass migrations away from fiat currency."

All together, there’s a clear path to $50T, and a plausible path to $100T.

Digital gold: $30 – $70T

"The world’s elite store $20 – 30T of their wealth in offshore bank accounts. These assets are held with the explicit intention of hiding assets from governments such that they cannot be easily seized or taxed. Cryptocurrencies are bearer assets. Absent threats of physical violence, governments cannot seize cryptoassets."

"The very people who want or need to escape their local fiat currency cannot. Argentinians, Venezuelans, Iranians, Turks, etc. overwhelmingly do not have access to securitized gold that trades on regulated exchanges."

There are a couple reasons for this. First, crypto is massively market expansionary (e.g., how many thought Uber’s addressable market was the size of the pre-Uber taxi market). And second, Crypto will absorb the monetary premia of many non-money assets that act as an inflationary hedge."

"To understand the magnitude of the opportunity, let’s add it all up: