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The Race to a Trillion Dollars: Digital Assets Face Strong Competition

From equity to debt, the digital assets market faces strong competition as it races towards the trillion dollar mark

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A trillion US Dollars! That’s a lot of money, and there are a lot of market participants now flocking towards reaching and breaching that mark. The US itself has a couple of examples of certain areas that are striding towards the trillion dollar mark, with quite a few of these under suspicion of being a bubble. Here’s a quick look at the trillion dollar race candidates.

Equity

  • The biggest companies in the world; Facebook (FB), Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOG), and Apple (AAPL) are all vying to be the first to break the magic $1 trillion market cap.
  • Saudi Aramco is expected to soon list its equity pursuant to an initial public offering, which is currently estimated at $2 trillion.

Debt

  • US Credit Card debt is soon expected to surpass the $1 trillion mark (was at $808 billion in 3Q17)
  • Student Loan debt in the US is being valued over a trillion dollars (at approx $1.48 trillion as of 3Q17) (https://fred.stlouisfed.org/series/SLOAS)
  • The US High-Yield debt market is well over $1 trillion in size
  • US Government Debt is already growing at around $1 trillion a year
  • The recent US tax overhaul is expected to add at least $1 trillion to US debt over the next decade, according to most economic models, including that presented by the Congress Joint Committee on Taxation.

Funds

  • At least 15 asset managers across the globe are already a part of the trillion dollar club. That is, they manage over a trillion dollars in assets. The largest among them being BlackRock (BLK), Vanguard, State Street Global Advisors (STT), Fidelity Investments (FFIDX), and JP Morgan (JPM).

Digital Assets

All of the above stand in competition in the market for digital assets, which is predicted to cross the $1 trillion mark before the end of 2018. And, this is no make-believe. If the look at the cryptocurrency market alone, which is a mere subset of the digital asset market in its entirety, the figure has already reached over $650 billion in market cap (as on January 16th). This past year (2017), has seen the market rise to new heights. From its humble beginning at $18.3 billion dollars on January 1st 2017, the market cap has risen by a whopping 3,452%, led by advancement in the market capitalizations of Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC), among others.

Which of these will make it there first? Only time will tell!

Who is your money on? Let us know in the comments below!

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