Jun 22, · Market participants may remember in when the price of one bitcoin surpassed that of a single troy ounce of gold for the first time. As of January , bitcoin’s price is above $8,, but. Aug 17, · If each ounce was worth about $1,, the world's gold supply would have an implied market cap of $ trillion dollars. That's more than times the market cap of bitcoin . Sep 10, · Benefits of Bitcoin. Rarer than gold. Anonymity. Security as an investment asset. Bitcoin Market Cap. Below is the market cap of Bitcoin since How Is Bitcoin Different? It is a purely digital creation created by open source software that mines for new Bitcoins using highly complicated computational algorithms. It also has a fixed quantity.
Btc vs gold market capCan Bitcoin Market Cap Hit Higher Than Gold? | Coin Insider
However, since bitcoin has protocol built in that allows for only 21 million coins to be mined, it, too, is perceived as a finite resource and has been a safe-haven source for investors. It's also hard to deny that momentum has played a role.
This writer has seen a marked increase in advertisements for investments in bitcoin online, and the allure of the pace at which bitcoin's value is rising has likely drawn in new money.
Investors should also understand that bitcoin isn't a traditional "investment" like we see in the stock market. It can be bought and sold, but only a few exchanges allow users to "short-sell" bitcoin and bet it goes down. This could be influencing its rising price as well. This gives you some idea of just how far this cryptocurrency has come in such a short amount of time. Let's take a look.
News outlets have been particularly diligent in pointing out how bitcoin's value is leaving gold in the dust. But, it's gold that could still mop the floor with bitcoin if we compare the two based on market cap.
According to a report from Thompson Reuters GFMS, it was believed that , tons of gold had either been mined or was still in the ground. Since there are 32, ounces per ton, we're talking about 5. That's more than times the market cap of bitcoin at its all-time high! It's also worth pointing out that numerous reports exist on the world's total gold supply, and some suggest as much as 2. Long story short, bitcoin still has a very long way to go to truly catch gold.
According to data compiled by SiblisResearch. In fact, the largest U. Through Friday, Aug. Admittedly, nearly all of this cash is being held in overseas markets, because Apple doesn't want to be taxed for the repatriation of this cash.
Would Apple do such a thing? Not a chance. It's focused on returning cash to its shareholders and reinvesting in new technologies. Lastly, let's take a look at how bitcoin stacks up next to the currency it'd ultimately like to make go extinct -- the U. According to figures from the St. The monetary base has increased more than fourfold from the Great Recession, and it's currently about 55 times larger than that of bitcoin, even after bitcoin's enormous run.
Despite its recent strength, this writer continues to believe that avoiding bitcoin is a smart move. Without true fundamentals to analyze, deriving a fair valuation on bitcoin is difficult to ascertain. We've witnessed numerous assets increase in value like this before throughout history, and practically every one wound up having its bubble burst eventually. My suspicion is bitcoin will be no different, and uninformed investors are going to be taken to the digital woodshed if they aren't careful.
What's more, the lone bitcoin investment option in the stock market is grossly overvalued. While bitcoin's underlying blockchain could be intriguing to businesses years down the road after it's been tested on a small scale, the current value of bitcoin makes little sense.
Investing Think approximately a decade is rather conservative, so trying to account for many things that could possibly happen to slow growth. Comparing the two alternative assets, gold is currently around 40 times more than Bitcoin in market capitalisation.
Should that come to be the case, it would require an enormous accelerated gain in value from Bitcoin from both a value point-of-view and a trading perspective. The asset was developed and launched just over a decade ago, and has seen an enormous gain in market cap, trading price, and popularity since inception and it continues to show signs of bullish growth.
The gold market in the past decade has remained mostly stable, with the exception of a sharp decline in From there, the precious metal regained its value to see a positive incline in value over the past two years. Bitcoin has seen a lot more volatility in the past few years than gold, given how the market has been in a constant state of adoption and correction. Bitcoin saw its first spike at the end of , marking its first cycle of increases.
Since then, it continued at a reasonably steady rate until midway through last year, where it lost and gained value with characteristic volatility. Like gold traders, Bitcoin and cryptocurrency traders tend to buy and sell according to numerous factors, including the price of fiat assets and the economic movements of the US Dollar.
As the US Dollar seems to drop, both Bitcoin and gold rise in value.