Hey Jessatstackers
It’s safe to say 2021 has been an epic year for Bitcoin! We’ve broken the all-time high several times and even reached the $1 Trillion market cap before pulling back!
While market cap isn’t exactly the most functional metric to work with, it holds a lot of psychological value. We, humans, love “number go up” even if it’s fake. As long as it’s going up, we’re happy.
Bitcoin still has a long way to go if it’s considered an established asset due to its small market cap relative to other forms of money and financial products.
I know seeing these numbers, we've become desensitized to it, but Bitcoin has become more valuable in market cap than most large-cap companies. In fact, only 5 companies worldwide have a larger market cap than Bitcoin.
These are:
| Company | Country | Market Cap (T) |
|---|---|---|
| Saudi Arabian Oil Company (Saudi Aramco) | Saudi Arabia | 1,684.8 |
| Microsoft | United States | 1,359 |
| Apple | United States | 1,285.5 |
| Amazon | United States | 1,233.4 |
| Alphabet | Alphabet | 919.3 |
Stats according to statista.com
To give you an idea of what I mean, I’ve pulled some of the popular forms of “money” or rather stores of value we have and looked at their market cap relative to Bitcoin.
Silver market
Bitcoin has already hit the 1 trillion dollar market cap and is pretty close to hitting it again, covering around the 900 billion marks, so reaching silver's market cap is a goal well within 2021's reach.
The current market cap of Silver is $1.382 Trillion, and if Bitcoin were to reach silver market cap parity. We would have a coin price of around.
- $75 000 per coin
Gold market
There are a few people who refer to Bitcoin as digital gold or gold 2.0; personally, I wouldn't say I like this comparison. I don't see the point of comparing them; they both do different things. Also, saying Bitcoin is gold 2.0 seems premature until it breaks the gold market cap.
How can you be version 2 if you're smaller and less adopted? Until Bitcoin breaks past the gold market cap, I think it can; I say let's not call it gold 2.0 yet.
The current market cap of Gold is $11.006 Trillion, and if Bitcoin were to reach gold market cap parity, we would have a coin price of around.
- $591 042 per coin
Stock market
The current market cap of US stocks is $31.61 Trillion, and if Bitcoin were to reach the US stock market cap parity, we would have a coin price of around.
- $1 700 174 per coin
Bond market
The current market cap of the global bond market is $105.9 Trillion, and if Bitcoin were to reach the global bond market cap parity, we would have a coin price of around.
- $5 740 588 per coin
Forex market
Bitcoin currently has a 24-hour trading volume of $41,835,315,329, and when we compare that to the global forex market, which has a daily volume of $6.6 trillion.
Bitcoin is still 157 times smaller than the worlds forex market.
Market caps aren't accurate
Since none of these financial assets uses a blockchain, we cannot know with absolute certainty how much product is out there floating around. Bitcoin, however, you can, and that's why people can beat it down as it is so transparent.
- Silver, Gold, Stocks, Bonds, we don't actually know how much is out there.
- We don't know how much leverage sits on these assets.
- We don't know how many claims are sitting on the same asset
So the market cap isn't a fair representation, but it does give us a guide to where Bitcoin's growth currently sits.
Still a long road to global money level
We don't yet know what Bitcoin will become globally; will it be the world reserve currency? Will it be the world's most pristine collateral?
Does it replace the bond market, or does it replace the forex market? We honestly don't know at this point.
What we do know is there is still tremendous potential upside as it gobbles up value from these markets. As more value flows into Bitcoin, it also unlocks efficiency that was otherwise lost due to the shortcomings of the legacy financial system.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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You mentioned the market cap of silver a few times but I guess you meant market cap of bonds, stocks etc?
There's a long way to move upwards with BTC and if you been watching Michael 'aye aye' Saylor interviews recently, very large institutions take about 24-48 months to get things together to put BTC on their balance sheets... Could be just getting started but I will leave the laser eyes profile pics to others!
Whoops my bad 🤦♂️ a little copypasta error but I fixed it now
I guess none of us know when this train slows down but I don’t think it’s anytime soon! So far buying the dip has proved fruitful.
I think corporates are only getting started and insurance companies, family offices and hedge funds will be next!
Still a while before a country becomes the micro strategy of nation states, and I wonder who that first country will be?
Yeah think we've got a while left in this particular train so just got to pick our moments! Only about 15-20 companies have really added BTC to their balance sheet from the Corporate conference last month out of thousands that attended so I agree, just getting started here!
Aren't Iran or Venezuela governments mining BTC now?
That’s pretty tiny because I thought 1000s tuned into his whole seminar, I guess they all have different time lines for buying and others are still unconvinced
The way this thing is going it will really only be a few 1000 BTC that is the liquid market with so many just sitting on theirs like a golden goose egg
Yeah pretty small percentage but a lot have to go through various approval processes from various stake holders but in any case, a lot more companies are exposed to crypto now at the least. The narrative being driven could end with institutional FOMO and there will be a liquidity issue - so much being taken off exchanges to cold storage!
Lol let then take their sweet time, me and the retail folks still need to pick up all the cheap Sats in the meantime!
If they do FOMO in the way MSTR did it’s only a matter of time before my daily purchases are pulling in 1000 Sats or less
Lol, I feel anything above 1000 sats per day at the moment is a steal!
Iran and Venezuela are mining I just don’t know if they’ve come out abs say how much they own and what they’ll be doing with it
I know North Korea also holds some crypto from the Kucoin hack abs other smaller South Korean exchanges that were hacked
Based on these calculations, Bitcoin will be out of reach of a lot of people but Satoshi will come to rescue then as Satoshi’s value will be pretty good.
Even more reason to accumulate more Satoshi 😀😀
I think once it breaks past 100k a coin there will be very few individuals who will be able to own 1 out right especially with earlier investors holidng so much. Being a 1 coiner will probably be less than 1 million people on the planet.
If no one wants satoshis now thats fine, ill gladly take them! Stacking sats is my only game plan
I thought the Bond Cap was way into a Quadrillion by now, with all the money printing in the current and near future that can easily double over the next few years of sooner.
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You're most probably right, I don't know what the real estimated size of the bond market is or the level of rehypothecation where they have multiple claims on the same bond. I just pulled the most modest stat I could find. I am pretty sure it's far worse than that, and continues to blow up, but they way we're desensitized to the word trillion I am sure soon they can give us the closer estimate and we won't be shocked, will just be another day at the office
I thought "that's astonishing" and then I read the bit about silver, gold, stocks etc. and thought "meh, maybe not so much". 😂
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LOL well we have to start somewhere, being bigger than any singe company is a start but yeah a long way to go before it's on the level of an asset class. If it can equal silver and stay above it for some time I think we'll really crack on with more people willing to allocate
Still early days in crypto. It really hasn't reached the masses yet based on what I see over here. Most haven't even heard of it.
You’re probably right I think we in Cryptos think it’s already world wide because we’re so deep into it but others don’t even know or see the problems we see.
I wonder how kong before we reach the billion user level reports say now we just over 100 million users world wide
I think it'll be a while. Crypto is still a bit too complicated for the ordinary user.
Oh I agree, and not to mention the cost of fucking up is high one wrong move and your crypto is gone, that's not exactly what we're used to with tech and its going to take a major educational drive before people feel comfortable with it
The if game. Interesting numbers. I wonder if we will live to see 5 mil. Bitcoin. Imagine. Oh I could see sparkles in your eyes hahah
!ENGAGE 20
LOL at 500k BTC I am pretty much retired so anything above that is just a bonus. I don't know if we'll get there but its fun to speculate. Where do you guess it stops and starts to normalis?
My prediction is 1 million a coin. I just like the idea that 1 sat is 1 cent in USD terms, so it makes sense for basically all nations to be able to use it as a unit of account without much calculation
!BEER
Ah we shall see
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