A Chinese Crypto Whale: 1%-3% of Household Wealth Will be Allocated to Digital Assets in Five Years
19 January ,2018—“ Between 1 percent and 3 percent of the world’s household wealth will be invested in digital assets ,driving the cryptocurrency market capitalization above 10 trillion U.S. dollars in five years.” Lihua Yi, the co-founder of INBlockhain, said in a blockchain conference in Shezhen on Thursday.
INBlockchain,a global-leading investment firm on blockchain technology is the main backer and supporter of Yunbi and Big.one exchanges. It also serves as the large investor in Qtum and CoinDash.
Mr. Yi, an early and well-known Chinese blockchain-focused player, offered his cryptocurrency investment advice at the event. He claimed one of the reasons that behind bitcoin’s value circulation is its scarcity.
According to the protocol established by Satoshi Nakamoto, bitcoin has a maximum of 21 million coins. At least 16.8 million bitcoins have already entered circulation as of 13 January, accounting for 80% of its total supply . This means,only 4.2 million bitcoins , or 20%, are left to be extracted. It is estimated that bitcoin will reach its final coin figure sometime in 2040.
Mr. Yi alleged that there are no more than 6 million bitcoins in circulation at present given that over 4 million are left to be mined, millions of coins are controlled by Whales and millions have been lost since the cryptocurrency was created in 2009.
“ Digital assets will be added to the family’s asset portfolio in the future.”
When it comes to the development of blockchain technology, Yi believed the technology which is dedicated to solving ‘assets and trust’ problems could shape the future.
“One half of your lifetime is wasted on preserving or increasing the asset value, while the other half is squandered in building organizational trust. How long will you take to make a trustworthy friend? In fact, it takes only a second to sign a partnership agreement, but requires a long period to build trust. Generally speaking, the cost of trust tends to be the most expensive.”