Bitcoin Price After Absorbing Financial Markets

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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:

CompanyCountryMarket Cap (T)
Saudi Arabian Oil Company (Saudi Aramco)Saudi Arabia1,684.8
MicrosoftUnited States1,359
AppleUnited States1,285.5
AmazonUnited States1,233.4
AlphabetAlphabet919.3

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.

Disclaimer: This article should not be taken as, and is not intended to provide any investment advice. It is for educational and entertainment purposes only. As of the time posting, the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency, as all investments contain risk. All opinions expressed in these articles are my own and are in no way a reflection of the opinions of The Bitcoin Manual

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