This is the forecast of Raoul Pal during the next bull cycle.  He believes that [cryptocurrency](https://leofinance.io/@leoglossary/cryptocurrency) will have users that cross 1 billion.  This would be up from the roughly 300 million or so who presently are involved.

Forecasts are just guesses based upon present information.  That said, it is a line of thinking that has some logic to it. 

Over the last 18 months, during the [bear](https://leofinance.io/@leoglossary/leoglossary-bear-market), a lot of building took place.  This took an industry that was primarily focused upon the monetary aspect of things and shifted it.  While that is still a major piece of the puzzle, we are seeing [tokenization](https://leofinance.io/@leoglossary/leoglossary-tokenization) built into applications as opposed to the reverse.  Here is where users are going to benefit.

We all know the excitement that is generated when [prices](https://leofinance.io/@leoglossary/leoglossary-price) start to skyrocket.  This garners attention.  However, when it comes to true value, which translates into wealth, we have to focus upon the [network effect](https://leofinance.io/@leoglossary/leoglossary-network-effect).

Hence, cryptocurrency has to shift into an epicenter for this.

![image.png](https://images.hive.blog/DQme3xQHm3gMLUKLKKxza3ArTCoQjcGNs734XVfACME3cKG/image.png)
<center>[Source](https://sketchfab.com/blogs/community/wp-content/uploads/2018/11/1billion-header.jpg)</center>

## Money Is Not Wealth

Many believe that money is wealth.  After all, if you have a lot of [money](https://leofinance.io/@leoglossary/leoglossary-money), aren't you wealthy?  This is a debatable point.  However, when we look at things from the level of an economy, it is easy to see how money is not wealth.  If that were the case, countries that could just print their [currency](https://leofinance.io/@leoglossary/leoglossary-currency) would be wealthy.

The reality is that money is a tool for wealth generation.  Wealth is the utilization of this tool and expanding the economic output tied to it.  In other words, it is the establishment and creation of [businesses](https://leofinance.io/@leoglossary/leoglossary-business).  This is what generates wealth.

Cryptocurrency is money.  It is also a means for capturing value.  In this regard, it can be seen as wealth, if the value is there.  This, of course, comes from the aforementioned network effect and the building of businesses.  

Here we see the process the industry undertook, especially during this last [bear market](https://leofinance.io/@leoglossary/leoglossary-bear-market).

When people like Charlie Munger and [Warren Buffett](https://leofinance.io/@leoglossary/leoglossary-warren-buffett) downplay cryptocurrency, this is the point they miss.  They do not see the value being created through the building of games and [applications](https://leofinance.io/@leoglossary/leoglossary-application).  This is the grassroots development that provides the foundation.

There is no doubt resources were scarce the last year.  Bear cycles do that.  Funding dries up making it difficult for projects to expand.

It is also why the survivors end up thriving.  Those that weather the storm end up in better position due to the fact they grew stronger.  The continued building during the bear does eventually pay [dividends](https://leofinance.io/@leoglossary/leoglossary-dividend).

## 1 Billion Users

We are not going to see 1 billion people speculating on the price of [Bitcoin](https://leofinance.io/@leoglossary/leoglossary-bitcoin).  The days of this realm being focused upon prices will have to end.  If one is solely talking about cryptocurrency based upon the [markets](https://leofinance.io/@leoglossary/leoglossary-market), you can categorize them like the rotary phone.

Take the existing currencies we utilize.  Certainly there are [FOREX](https://leofinance.io/@leoglossary/leoglossary-forex) traders.  Yet, if we consider that against the total population, we see it is a minor percentage.  That said, everyone uses currency.  So what is the difference?

It goes back to the wealth creation system.  We use currency as part of the economic activity we engage upon.  Even [investors](https://leofinance.io/@leoglossary/leoglossary-investor) are not focused upon the price of the [USD](https://leofinance.io/@leoglossary/leoglossary-usd) versus the [EUR](https://leofinance.io/@leoglossary/leoglossary-eur).  Instead, one buys stock as a way to build [wealth](https://leofinance.io/@leoglossary/leoglossary-wealth) based upon the activities of the business.  Sure, traders are always operating, looking to [profit](https://leofinance.io/@leoglossary/leoglossary-profit) based upon moves.  Nevertheless, there is always a [business cycle](https://leofinance.io/@leoglossary/leoglossary-business-cycle) in play that is, ultimately reflected in markets.

The next cycle will get 1 billion people involved in cryptocurrency based upon their ability to engage with with things that are tokenized.

On Hive, we are aware of the expansion in use of the [Hive Backed Dollar (HBD)](https://leofinance.io/@leoglossary/leoglossary-hive-backed-dollar-hbd) in Sucre, Venezuela.  While this might look like a monetary transaction, when we step back, we see something larger.

How did those people get the HBD in their [wallets](https://leofinance.io/@leoglossary/leoglossary-wallet)?  Did they swap Bolivar for HBD?  The answer is no.  Instead, those individuals were able to engage with applications which rewarded their efforts.  Through this, they were able to accumulate HBD through their activities.  The tokenization process that is taking place under [web 3.0](https://leofinance.io/@leoglossary/leoglossary-web-3-0) is the delivery mechanism.

Do not be surprised if this is repeated throughout much of the developing world.  When building from the ground up, go to the worst hit areas first.  That means ignoring the United States, Japanese, and EU economies.  Even though sick, they do have a degree of functionality.

Instead, Venezuela, Ghana, Nigeria, and Cuba are all nations where a new system resonates.  Those four countries amount to roughly 275 million people.  That is a drop in the bucket but a starting point.

Add in India, Southeast Asia, other African nation nations, and the rest of Central/South America to see how large this can get.

## Value Driving Pricing

Most cryptocurrency are [value capture tokens](https://leofinance.io/@leoglossary/leoglossary-value-capture-token).  This means that as value is generated for these different projects, that will eventually be reflected in the price by the markets.  Those building through the bear will be present when 1 billion users do arrive.

It is all a process.  And none of this has to do with [Lambos](https://leofinance.io/@leoglossary/leoglossary-lambo) or [Mooning](https://leofinance.io/@leoglossary/leoglossary-mooning), although that will be revived when the [bull](https://leofinance.io/@leoglossary/leoglossary-bull) starts to run.

___
If you found this article informative, please give an upvote and rehive.



https://images.hive.blog/0x0/https://files.peakd.com/file/peakd-hive/doze/MkkDNhyH-2020_04_13_16_57_48.gif

gif by @doze

![screen_vision2025_1.png](https://images.hive.blog/DQmXEv6MvKTCurBzSdbKjWzFadJwfJfJfmA2We9EwD5q5Vb/screen_vision2025_1.png)

logo by @st8z

* [What is Hive](https://leofinance.io/@leoglossary/leoglossary-what-is-hive)

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@taskmaster4450/cryptocurrency-with-1-billion-users)