13.5 C
October 4, 2022
Image default

Bitcoin now has 10% of the gold market capitalization

In addition, Bitcoin owns more than 50% of Apple’s market capitalization

As the current Bitcoin rally continues, the asset’s market capitalization is also gaining momentum in an attempt to reach major traditional assets, such as gold.

With a market capitalization of $ 1.07 trillion, Bitcoin now accounts for 9.85% of gold’s $ 10.9 trillion. The cryptocurrency’s market capitalization, along with its value, increased from the fourth quarter of 2020, with the asset reaching a high of $ 57,800 on March 12, 2021.

The market capitalization of digital currency also represents about 53.08% of Apple’s $ 2.07 trillion. Elsewhere, silver has a market capitalization of $ 1.42 trillion, with Bitcoin accounting for 76.09%.

Bitcoin market capitalization compared to gold, Apple and silver. Source: CompaniesMarketCap.com

Although Bitcoin is still miles from reaching gold, supporters believe it will one day become a store of value as institutional adoption increases.

Gold and Bitcoin resilience tested during pandemic

The resilience of Bitcoin and gold during economic crises was tested amid the coronavirus pandemic in 2020.

For Bitcoin, its value increased after falling alongside traditional markets in March last year. Elsewhere, gold reached an all-time high in August when it first traded above $ 2,000.

After the traditional market crash, the pandemic forced some tightening in the gold and Bitcoin relationship.

Historically, Bitcoin has tended to trade closer to the stock markets, despite enormous volatility. However, as more people continue to invest in the asset, its price is likely to stabilize.

It is worth noting that Bitcoin is liquid enough and safely stored, with a guaranteed supply limit. For gold, your custody is expensive.

Both assets are free from government control, but gold is held by central banks, and this potentially means that its price can be manipulated. Therefore, Bitcoin proponents believe that the state’s lack of control and manipulation means that the asset will eventually outpace gold.

At the same time, Bitcoin supporters believe that market capitalization will overtake Apple.

As Bitcoin’s popularity and acceptance continues, this could mean broader adoption in the future.

Source: Finbold

Related posts

Jon Najarian, a well-known options market trader, is a supporter of BTC Blocksats

Aparnna Hajirnis

What makes Geco.one different from traditional cryptocurrency exchanges? Interview with CEO Marcin Wituś. –

Aparnna Hajirnis

Will you still earn on your Liska? – Bitcoin Radio # 17 –

Aparnna Hajirnis

Leave a Comment