This is just speculation.
Let’s start off by addressing the bulls in the room. I’m not suggesting that a marketcap of 1 trillion is guaranteed (although that would be amazing). Nor am I suggesting parabolic price movement in 2018. The purpose of this article is straightforward and simple. What would an Ethereum market cap of 1 trillion dollars look like?
This will be a quick and simple article.
DAPPS and Development:
Ethereum would have to go mainstream. There’s no other way to put it. Better yet, it would have to provide a major use-case for further mainstream adoption. This can be accomplished in a variety of ways. The most promising appears to the promise of DAPPs (otherwise known as decentralized applications).
Perhaps a major country uses the Ethereum network for online voting or poll taking. Maybe global business like Amazon and Apple adopt their own DAPPS. The utility of these applications makes them applicable to a variety of situations, and thus its value will increase.
For Ethereum to reach a 1 Trillion dollar market cap, but players have to make big moves. And it has to be done in a big way.
Proof of Stake:
It goes without saying that Proof of Stake has to be included for Ethereum to ever reach a 1 trillion dollar market cap. A Proof of Stake model would give Ethereum not only an edge in utility, but also a moral high-ground.
If Proof of Work continues to use a crazy amount of electricity, it could be argued that adopting Ethererum is the more environmentally sound alternative. Similar to how people shop with their own bags instead of plastic bags.
(I know that plastic bags isn’t a great comparison to world changing technology, but you get the point.)
There’s also the possibility that the move would give developers more staking power in shaping the platform. Which would mean, as opposed to Bitcoin, Ether wouldn’t just be a product – it would be a product which could be updated routinely. In a democratic way as well.
Ether would have a price point of $1,000 assuming a 100 Billion dollar market cap. Naturally, to achieve a 1 Trillion dollar market cap, we’d have to assume the price to be somewhere in the $10,000 range.
This could be accomplished through the reasons stated earlier. Even something as trivial as Amazon.com adding cryptocurrencies as a form of payment could rocket the price.
A big miscalculation is assuming that a higher price point like $10,000 is impossible. Similar to a year ago, when people assumed $100 Ether was a joke. While there’s always the possibility of failure, those who doubted Eth’s past performance have been burned.
I want to be clear. This is entirely speculation. Many of you have wondered what a 1 Trillion dollar Ethereum market cap would look like, and so I thought I’d write out a piece.
This is still unexplored waters and so we might not know what to expect.