If you were amazed at the moves by MicroStrategy and Tesla into Bitcoin, just wait till the really big companies start shifting part of their assets into this digital store of value. Bitcoin is volatile, but it is volatile up, while the dollar is non-volatile and all indications are will be of decreasing value as time goes on. Many smaller, lesser known companies are also shifting holdings into Bitcoin. It is only a matter of time before Microsoft, Google and Apple put big parts of their treasury into this new digital gold.
As a result of more institutional buying of Bitcoin and continued use by retail users, Bitcoin’s market cap is now at $872 Billion Dollars. This makes it the 9th largest asset in the world (Gold is number one, coming in at $11 Trillion Dollars. Apple is a distant number two coming in at $2.2 Trillion).
Since most of the institutional world is just now awakening to Bitcoin’s value, Bitcoin’s market cap can be expected to grow.
Money is edging closer toward its biggest reinvention in centuries as central banks start to embrace the creation of digital currencies https://t.co/jrXcAwabKy
— Bloomberg Crypto (@crypto) February 6, 2021
It really is the new gold, and one day we could see it supplant Gold for the top of the global asset list.
But there is another asset that is on the list and growing fast: Ethereum. This digital asset has been called digital oil because it is spent when using the distributed computing resources of the Ethereum network. But it is also a store of value itself, and Ethereum currently has a market cap of $202 Billion. This is huge!
There is a good chance Ethereum will grow faster than Bitcoin did. One reason is it has more functionality. It is both a store of value and a programmable ability to create smart contracts. Ethereum enables the big recent moves to distributed finance (DeFi), which now holds over $30B in assets.
But another reason Ethereum will grow faster than Bitcoin did is that people are now more familiar with the whole concept of a smart, strong cryptocurrency. Because of moves by Tesla and MicroStrategy and many other institutional investors, many people are realizing they were wrong about Bitcoin, and are savvy enough to be more open to Ethereum. This is a big signal that the uptake will be quicker.
After years of analysis of cryptocurrencies, I have to say, I believe every single one of us is underestimating the positive transformation and rapid change that #Bitcoin and #Ethereum will put us through.
— Bob Gourley (@bobgourley) February 4, 2021
More reading:
What You Need To Know About Bitcoin: Including potential new business models to consider
