2021-2-19 18:54 |
In what is perhaps its most significant value milestone to date, Bitcoin has officially passed $1 trillion in market capitalization for the first time.
With Bitcoin recently breaching $53,500, it has surpassed the $1 trillion market cap threshold.
Although Bitcoin has gained legitimacy as a true asset, this feat cements the borderless, permissionless, and immutable cryptocurrency in an elite club. As the number six most valuable asset in the world, it seems there is no turning back now.
Bitcoin Momentum BoomingMany factors have led to this monumental achievement. Corporations and legacy financial industries are now leading the way towards adoption.
During the previous bull run in 2017, when Bitcoin hit an all-time high price of around $20,000, retail investors dominated the market. Now, we have ultra-high-net-worth investors and institutions putting billions of dollars into the Bitcoin market.
Primarily beginning with Microstrategy CEO Michael Saylor (although there was some corporate involvement before), there is a new outlook on Bitcoin as a store of value. It’s still following the transfer of value narrative that Satoshi wanted Bitcoin to become, but many are currently looking at it as a hedge against inflation and government interference.
Considered by many to be a superior store of value than fiat currencies and precious metals due to its underlying fundamentals, many have begun to adopt the currency as a portion of their reserve assets. Tesla even purchased $1.5 billion worth of the asset.
This growth in adoption as in investment class is also driving other companies to try to capitalize on the opportunity. Many companies like PayPal and Mastercard have even begun to integrate cryptocurrencies into their businesses in a non-investment manner.
PayPal has opened up cryptocurrency purchasing, selling, and exchange options on its transactional services platform, and Mastercard will begin facilitating users’ cryptocurrency transactions this year. On their own, any of these factors would be an extremely bullish sign for Bitcoin. When combined, it paints a picture of the future usage and adoption of the cryptocurrency.
Room for Bitcoin to GrowJust from the store of value side alone, Bitcoin has a lot of room to grow when compared to traditionally established markets.
Two of the most popular stores of value currently are gold and real estate, with gold alone amassing a market cap of over $10 trillion. If Bitcoin becomes a global store of value that competes with gold (excluding the real estate market for now), it still speaks to the massive amount of cash that could flow in from other more “stable” assets.
If money from other capital asset classes like stocks, bonds, and real estate moves into Bitcoin, the market cap could soar trillions of dollars higher. Add in the opportunity to be the global reserve currency and the possibilities are greater than ever.
Of course, Bitcoin is still an experiment and may never reach these levels, but a lot of big names are backing it as it passes this crucial milestone.
The post Bitcoin Celebrates $1 Trillion Market Cap Milestone appeared first on BeInCrypto.
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