Raul Pal says that if the macroeconomic turmoil stops, the market capitalization of cryptocurrencies will increase dramatically

Former Goldman Sachs CEO Raul Pal believes that if the macroeconomic turmoil stops, the market capitalization of cryptocurrencies will increase dramatically. The expert refers to the level of activity around digital assets and Web3, assuring that these areas are of great interest to venture investors.

“All major Web2 players are involved in the financing of cryptocurrencies. It’s subtle as they’re being cautious as they move forward due to regulatory issues. But they know that this is what it’s all about. I personally have never seen anything like it. Blockchain is similar to the Internet, but is growing faster and larger in scale. It sounds crazy, but it adds value to all types of assets,” said Raul Pal.

According to the expert, there is now a significant increase in the value of digital currencies. Pal pointed out that the capitalization of almost all “traditional asset markets is between $200 and $300 trillion”, and the crypto market can reach this mark within 10–15 years.

The analyst is also confident that the growth of capitalization in the digital asset market will be “the fastest and largest the world has ever seen.”

“Traditional markets and cryptocurrencies are very different things. As soon as the macroeconomic situation changes, many projects will be launched. After all, so many companies have already invested venture capital in the cryptocurrency ecosystem,” says Pal.

Andre Cronje, the founder of the Yearn.Finance, Keep3r and Solidly projects, also spoke about what the cryptocurrency industry should be like. He is sure that the recent fall of the cryptocurrency market has demonstrated the need for market regulation due to “irresponsible” companies.

“Remedies under the current regulatory regime are ineffective. The policy of most crypto exchanges forces investors to give up rights to their assets. As a result of the bankruptcy of the platform, at best, they will be considered unsecured creditors,” the entrepreneur said.

Cronje believes that the crypto asset industry should introduce deposit insurance, prudential oversight, and tools to protect user rights. In this case, when companies go bankrupt, investors will be able to take advantage of the “opportunity to apply to the appropriate prudential authority or to the court.”