Digital assets continue to offer high growth potential in long run
The global cryptocurrency market has grown 68 per cent year-to-date and would grow further in the next 3-5 years, Cryptomind CEO Sanjay Popli said on Saturday.
He was speaking at the Thailand Blockchain Week at Emsphere shopping mall in Bangkok. The event runs until Sunday.
The fundamentals of the cryptocurrency market are strong, he said, adding that circulating funds had increased from US$191 billion (6.53 trillion baht) in 2020 to $2.3 trillion (78.65 trillion) in 2022.
The market is expected to gain positive sentiment next year, including central banks’ move to lower the policy interest rate, the US Federal Reserve’s quantitative easing programme, and US president-elect Donald Trump’s policies to support cryptocurrency.
However, he pointed out that uncertainty over the economic recession triggered by inflation and ongoing geopolitical conflicts could impact the growth of the cryptocurrency market.
“We believe that opportunities from digital assets still exist thanks to the high growth potential,” he said.
Popli revealed that Thailand was ranked 16th globally in cryptocurrency adoption this year, dropping from 12th last year. He said the country, however, was playing a crucial role in the market.
Thailand has 6 million stock trading accounts compared to 2.1 million cryptocurrency accounts, he said. He expects the number of cryptocurrency traders to increase in the next 3-5 years.
Though cryptocurrencies might face a small volatility, three speakers affirmed that the cryptocurrency market was expected to grow exponentially next year.
Chaloke Sambandaraksa, co-founder of website Chaloke.com, said the market was currently in the bull stage, confirming that the market would skyrocket.
“We now see bitcoin as a store of wealth. But if it can be used as a money or reserve currency, we cannot predict how far it can go,” he said.
Peeraphat Hankongkeaw, the chief information officer of Cryptomind Advisory, said the cryptocurrency market could reach a new high on Trump’s policies.
“Anything can happen in the cryptocurrency market. If Trump actually includes bitcoin as reserve equity, it could reach a new high,” he said.
Pattarapon Sinlapajan, the founder of Money Matters programme on YouTube, said a cryptocurrency like bitcoin is now a mainstream asset.
“Investment in bitcoin would generate profits in the long run, as people would seek assets to prevent risks from inflation,” he said.
The speakers advised investors to study carefully before speculating for profits. Some of them recommended investment in gold and land to diversify risks of loss.
“Bitcoin is an asset that all people should have, but it depends on your knowledge how much you should invest,” Chaloke said.
“Studying investments is important because cash always flows to knowledgeable investors,” Peeraphat added.
