We estimate the global equity market capitalization is approximately

$110 trillion. Gold is about $10 trillion

Summary

The cryptocurrency market (i.e. Bitcoin, Dogecoin, Ethereum, etc.) is approximately $3.1 trillion, but has been tumbling in recent days from the $3.7 trillion level amid a high level of volatility. Even in light of the sell-off, Bitcoin is up more than 50% year-to-date. In theory,

consumers, investors, and traders can all be attracted to Bitcoin. For consumers, cryptocurrency can cut out the middleman in a transaction of value. That said, we think crypto volatility is too high to consider paying for a tank of gas (or even a Tesla) with Bitcoin. For traders, the ups and downs of cryptocurrencies are a major opportunity -- as long as

they are on the right side of Elon Musk's tweets or rapidly changing Chinese crypto regulations. For investors, the goal is to determine when crypto will become a more mainstream security. We estimate the global equity market capitalization is approximately

$110 trillion. Gold is about $10 trillion. For crypto to make it into the asset-allocation models for most investment managers, we think it needs to approximately double in value to $5-$6 trillion.

Then it could account for 2%-3% of total portfolio assets and could be used as a growth alternative. By then, there also may be more uses for and regulations to define the asset class, and more fundamentals to support valuation.