In early September this year, the market value of bitcoin (BTC) fell by about $ 190 billion as the price of BTC hovers around $ 10,000.
But over the past two months, the price of bitcoin has risen from over $ 15,000. However, the market value of Bitcoin has increased from $ 190 billion to about $ 280 billion. This makes Bitcoin more valuable than most major US companies.
Bitcoin is the 18th largest trading company in the United States.
If you compare the valuation of Bitcoin to listed companies in the US, it matches the 18 largest companies.
The 17th largest company in the US is Home Depot with a market value of $ 306 billion. Verizon lags behind with a $ 242 billion valuation, leaving a wide gap between the two.
With a current market value of about $ 280 billion for bitcoin, it is the largest of all companies in the United States outside of the top 17.
Companies that have surpassed Bitcoin in recent months include some of the big names like Netflix, PayPal, BofA, Coca-Cola, Salesforce, and Disney.
Bitcoin still lags behind the top three US financial institutions by valuation, namely Visa, Mastercard, and JPMorgan. For a cryptocurrency to surpass all three, it must reach $ 23,000 or a market value of $ 426 billion.
However, the price of BTC must reach nearly $ 120,000 for Bitcoin to catch up with Apple, the world’s most expensive company with a market value of $ 2 trillion.
Investors Realized Bitcoin’s Unequal Risk Potential
Analysts, meanwhile, expect BTC to rise during 2020 and early 2021, and they expect BTC to enter pricing and reach consistent highs.
In 2017, Bitcoin hit a new record after 15 months of the 2016 semi-annual award. BTC last halved in May 2020, so the odds of reaching a new peak in mid-2021 remain high based on historical cycles.
Ultimately, cryptocurrency investors and analysts say that seeing Bitcoin as a persistent storage of value will lead to valuation.
Tyler Reynolds, a former candidate from Google and Morgan Stanley, said Bitcoin’s stable supply makes it an attractive defense against government spending. He wrote:
“As it is currently being formed, BTC will have the following upside potential, with the same story that OG has been telling since 2011: Bitcoin’s tight supply coverage makes it a sustainable currency value as governments devalue their fiat currencies to support unlimited government spending. … ”
Other notable investors, such as billionaire Paul Theodore Jones, Wall Street hedge fund manager, have described Bitcoin as a model inflation game.
Bitcoin is especially attractive to organizations because it can act as a hedge in a diversified portfolio, but it also allows investors to be exposed to Bitcoin’s asymmetric risk potential.
Bitcoin’s relatively low market value compared to companies like Visa and safe assets like gold suggests there is plenty of room for further growth in the next decade.