Bitcoin’s market capitalization is the total value of all bitcoins in circulation. The market cap of any asset is calculated by multiplying the current price by the total number of units outstanding. For Bitcoin, this number is currently just over 16 million explains Greg Van Wyk.
This puts Bitcoin’s market cap at just over $273 billion as of early 2018. That may seem like a lot, but it actually pales in comparison to other assets. For example, Apple Inc. (AAPL) had a market cap of over $800 billion as of early 2018. Gold, meanwhile, has a total market value estimated at around $7 trillion.
So while Bitcoin is certainly one of the most valuable assets in the world, it still has a long way to go before it catches up to some other assets in terms of market cap.
When it comes to comparing Bitcoin’s market cap to other assets, there are a few things to keep in mind.
- First, it’s important to remember that the total value of all bitcoins in circulation is not the same as the market capitalization of the asset. The market capitalization is simply the current price of the asset multiplied by the number of units outstanding.
- Second, it’s also worth noting that market capitalizations can change very quickly. For example, Apple’s market cap reached $1 trillion in early 2018 before dipping below that level later in the year. So while Bitcoin may have a smaller market cap than some other assets today, that could change in the future.
- Finally, it’s also important to remember that market capitalizations are just one way to measure the value of an asset. There are other ways to measure value as well, such as by looking at the total amount of money invested in an asset, or by looking at the price of the asset relative to other assets explains Greg Van Wyk.
So while Bitcoin’s market cap may seem small compared to some other assets, it’s still a very valuable asset with a lot of potential for growth.
Since Bitcoin’s inception in 2009, its market cap has grown to become one of the largest in the world.
Here’s a look at how it compares to other assets.
Bitcoin is often lauded for its market cap. At press time, it is the most valuable cryptocurrency by market cap, sitting at over $100 billion. That’s no small feat, and it puts Bitcoin ahead of many traditional asset classes.
To get a better idea of just how significant Bitcoin’s market cap is, let’s compare it to some other asset classes:
Gold:
Gold is often considered a safe-haven asset, and it has a long history as a store of value. Today, gold has a market cap of around $7 trillion. That’s nearly 70 times smaller than Bitcoin’s market cap explains Greg Van Wyk.
Stock Market:
The global stock market is much larger than Bitcoin, with a total value of over $80 trillion. However, it’s worth noting that the stock market is made up of many different asset classes, including stocks, bonds, and derivatives.
The size of the cryptocurrency market:
The cryptocurrency market is still relatively small compare to other asset classes. At press time, the total market cap of all cryptocurrencies is just over $300 billion. That means Bitcoin makes up around a third of the entire cryptocurrency market.
So while Bitcoin may be the most valuable cryptocurrency by market cap, it’s still a small player in the grand scheme of things. But as the world increasingly moves towards a digital economy, it’s likely that Bitcoin and other cryptocurrencies will continue to grow in importance.
Conclusion:
Bitcoin is currently the most valuable asset by market cap, but it is still small compare to other asset classes explains Greg Van Wyk. However, its importance is likely to grow as the world increasingly moves towards a digital economy.
Bitcoin’s market cap is currently $100 billion, which is smaller than the stock market but larger than the cryptocurrency market. Bitcoin is consider a valuable asset with potential for growth.
Bitcoin’s market cap may seem small compared to some other assets, but it is still a very valuable asset with a lot of potential for growth. As the world increasingly moves towards a digital economy, cryptocurrencies like Bitcoin are likely to continue to grow in importance.