Aug 18, · At the present time of writing, gold’s market cap is around $9 trillion USD. Bitcoin’s market capitalisation sits currently at $ billion USD. Comparing the two alternative assets, gold is currently around 40 times more than Bitcoin in market capitalisation. The precious metal’s market cap is $9 trillion according to the analysts, but conflicting reports from Fidelity Digital Assets claim it to be as high as $12 trillion recently, in a report highlighting how Bitcoin might perform next to stocks, metals, and more. Bitcoin “surpassing” gold would mean that each coin would be priced somewhere in the $, to $, range — 4,% above current prices. This sentiment has been echoed by Raoul Pal, CEO of Real Vision and a former hedge fund manager.
Bitcoin gold value market capTechnical Expert Shows How Bitcoin Path Could Reach Gold’s $10 Trillion Cap
It makes as much sense to talk about the market cap of Bitcoin as it does to refer to the market cap of the dollar. It is best to analyze their markets using classical comparative-static Monetary Economics. The Supply of Bitcoin is perfectly inelastic vertical Supply curve. Supply increases by The Demand for Bitcoin is a Demand for Money. Where Google Finance prices are unavailable, prices are taken from Bloomberg.
Not pic. Bitcoin versus Precious Metals. That is half a million dollars for Europeans confused by the comma sign. This is an old but a good tidbit on this subject:.
TheStalwart barrysilbert pic. Bitcoin now has a larger market capitalization than silver, twitter and Dropbox — Thanks for the data bravenewcoin pic. It was pointed out to Dixon that he was selling snake oil.
He did not correct the false information he distributed, which is a worrying trait. BambouClub SimonDixonTwitt bravenewcoin 2. Last word on Bitcoin and Gold. Bobby Lee makes some interesting observations about the mining of Bitcoin and Gold in China. How do you measure the market cap of a currency? What Europeans call current accounts.
It excludes less liquid, broad money, notably money held in time-deposits savings accounts. Bitcoin Money Supply was 41 in global rank on 1 Jan Now USD M1 changes over time. Usually, it grows — much more quickly than the supply of Bitcoin measured in BTC — and, very rarely, decreases. The MS for Bitcoin presently is It will rise to a maximum of 21 million. You know the story, the best-performing currency in , , , , A Reserve Currency is a one that is held in significant quantities by governments and institutions as part of their foreign exchange reserves.
Reserve Currencies are normally considered to be hard or safe-haven currencies. Source: IMF. MS of Bitcoins vs. Plus Gold, CNY. EUR excluded. That could happen in the next one or two years. This is important — status as a Reserve Currency creates a significant additional demand for that currency independent of other sources of demand, such as for payment and for investment.
So if the Pound Sterling was not a Reserve Currency, for example, its international buying power would be much weaker. Plud, Gold, China, Bitcoin. Should that come to be the case, it would require an enormous accelerated gain in value from Bitcoin from both a value point-of-view and a trading perspective.
The asset was developed and launched just over a decade ago, and has seen an enormous gain in market cap, trading price, and popularity since inception and it continues to show signs of bullish growth. The gold market in the past decade has remained mostly stable, with the exception of a sharp decline in From there, the precious metal regained its value to see a positive incline in value over the past two years.
Bitcoin has seen a lot more volatility in the past few years than gold, given how the market has been in a constant state of adoption and correction. Bitcoin saw its first spike at the end of , marking its first cycle of increases. Since then, it continued at a reasonably steady rate until midway through last year, where it lost and gained value with characteristic volatility. Like gold traders, Bitcoin and cryptocurrency traders tend to buy and sell according to numerous factors, including the price of fiat assets and the economic movements of the US Dollar.
As the US Dollar seems to drop, both Bitcoin and gold rise in value. Whether this will happen and — if it should — whether Bitcoin market cap and value can hold above that of gold will be seen in time.
If Bitcoin does exceed gold in value and market cap, it will likely be at the mass adoption of the use of cryptocurrencies for both trading and daily transactions across the globe.