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At the beginning of September of this year, the market capitalization of Bitcoin (BTC) was hovering around $ 190 billion when the price of BTC was hovering around $ 10,000.
Over the past couple of months, however, the price of Bitcoin has jumped by over $ 15,000. With it, Bitcoin’s market cap increased from $ 190 billion to around $ 280 billion. This now makes Bitcoin more valuable than most major US companies.
Bitcoin is equivalent to the 18th largest trading company in the United States
If Bitcoin’s valuation is compared to publicly traded companies in the United States, it would correspond to the 18th largest company.
The 17th largest company in the United States is Home Depot with a market capitalization of $ 306 billion. Verizon falls behind with a valuation of $ 242 billion, leaving a large gap in between.
Since Bitcoin’s market capitalization is currently around $ 280 billion, it is larger than all companies in the United States outside of the top 17.
The companies that Bitcoin has surpassed in recent months include some big names like Netflix, PayPal, BofA, Coca-Cola, Salesforce, and Disney.
Bitcoin is still behind the three largest financial institutions in the United States by rating, namely Visa, Mastercard and JPMorgan. For the top cryptocurrency to outperform all three, it would have to reach $ 23,000 or a market cap of $ 426 billion.
However, the price of BTC must reach somewhere around $ 120K for Bitcoin to catch up with Apple, the most valuable company in the world with a market capitalization of $ 2 trillion.
Investors become aware of Bitcoin’s potential asymmetric risk-return
Meanwhile, analysts predict that BTC will rise throughout 2020 and early 2021, expecting BTC to enter price discovery and reach new all-time highs.
In 2017, Bitcoin hit a new record high 15 months after halving the block reward in 2016. BTC saw its last halving in May 2020, so the chances of a new peak in mid-2021 remain high based on historical cycles. .
In the long run, cryptocurrency investors and analysts say the perception of Bitcoin as an enduring store of value would drive its valuation.
Tyler Reynolds, alumni of Google and Morgan Stanley, said Bitcoin’s fixed offering makes it compelling as a hedge against government spending. He he wrote:
“As is currently looming, the next bullish race will be led by BTC with the same narrative that OGs have been saying since 2011: Bitcoin’s hard supply limit makes it a durable SoV as governments devalue their fiat currencies to support. unconstrained public spending. “
Other major investors, like Wall Street billionaire hedge fund manager Paul Tudor Jones, have called Bitcoin an ideal inflation game.
Bitcoin is particularly attractive to institutions because it could act as a hedge within a diversified portfolio, but also offer investors exposure to Bitcoin’s potential asymmetric risk-return.
Bitcoin’s relatively low market capitalization compared to companies like Visa and safe haven assets like gold indicate that there is significant room for further growth over the next decade.
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