Crypto Will Reach 15% of Global GDP

Coinbase CEO Brian Armstrong expresses optimism amid the current crypto downtrend. He appreciates, that the crypto industry will occupy 15% of global GDP in 20 years.

Armstrong Sees Crypto Industry Explode

Brian Armstrong, founder and CEO of Coinbase, dismisses the current pessimistic approaches to the market. He says: cryptocurrencies such as Bitcoin or Ethereum will take 15% of global GDP in 20 years.

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Armstrong on the Coinbase Q1 Earnings Call:

“In my opinion, this is [Krypto] a little like the early days of the Internet, where they saw the birth of e-commerce in the late 90s or early 2000s, and now looking into the future, 20 years, e-commerce, I think, accounts for about 15% of global GDP.“

And again:

“I think if you fast forward 20 years from here, the crypto economy will probably make up a large part of it, 15% of global GDP.“

He also comments, that most companies would use cryptocurrencies in some form in the future – just like they had to take over the Internet.

Coinbase is in a Bear Market

Over the past seven days, the total market capitalization has lost more than 33% of its volume. That’s the equivalent of $570 billion.

Some say the bear market is officially here. Especially after the LUNA crisis, the general market sentiment turned sharply into the negative.

Coinbase’s Q1 earnings report also shows a decline in numbers. The figures illustrate a 53% decrease in net income compared to the previous quarter.

This represents a net loss of $430 million. In addition, the report contained formulations on bankruptcy, which caused concern among many in the community.

Nevertheless, Armstrong emphasizes during his speech at the Q1 Earnings Call:

“Ironically, I have never been so optimistic about our position as a company. And I think it’s really important to distinguish our performance, how we achieve our goals, from the performance of the market.“

Armstrong continued:

“As the industry matures over time, we will be a very profitable company that makes more consistent profits. But at the moment, regardless of whether the market rises or falls, we will continue to build.“

The Survival of the Crypto Industry

According to Kris Marszalek, the CEO of Crypto.com , the industry will triumph despite the difficult conditions. True, he accepts that 95% of projects will die. But at the same time, he also agrees with Terra co-founder Do Kwon, that the market will get back on its feet.

It’s a really rough day for crypto.

The biggest difference between 2018 and what is happening today?

Nobody is questioning crypto’s survival. The industry will come back stronger. It always does.

Stay safe through the storm 🙌

– Kris | Crypto.com (@kris) May 12, 2022

In other words: Armstrong isn’t the only one sticking to his optimism. Regardless of today’s conditions, Armstrong could his predictions for the next 20 years are correct.

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