Bitcoin unveiled a fresh history on Friday and generated a lot of buzz on Wall Street and Main Street, as well as on social media platforms, as the world’s number 1 cryptocurrency delivered a sharp march that raised its market value higher and higher made. $ 1 trillion.
With the latest check, a single bitcoin traded close to a record $ 54,827.69, 5% higher, pushing the crypto written in code in 2009 to a total market capitalization of $ 1 billion.
Dow Jones Market Data via CoinMarketCap
The stratospheric rise of the digital asset created by someone or people known as Satoshi Nakamoto has put investors in perspective the historic move on Twitter.
One tweet focused on Nakamoto’s email that led to the birth of the digital asset, which emerged following the 2008-09 financial crisis. Nakamoto is credited with writing the software that created the decentralized currency as a challenge to the perception that central banks are printing fiat currency, such as dollars DXY,
in euros EURUSD,
with reckless abandonment on paper about the cracks in the financial system caused by the subprime mortgage crisis.
A total value of trillion dollars is important for the asset backed by blockchain, which at the beginning was worth a fraction of a cent, but even in the early days caught the attention of the financial world as this tweet of the Twitter handle related to the crypto trading platform. , referring to the Mike Myers character Dr. Evil:
Bitcoin prices are tearing. They climbed nearly 90% in 2021. For comparison, gold GC00,
a competitor with the digital asset as a value-added, has declined by more than 6% since the beginning of the year.
Meanwhile, the Dow Jones Industrial Average DJIA,
has risen more than 3% so far this year, the S&P 500 index is SPX,
increased by more than 4%, and the Nasdaq Composite Index COMP,
yielded almost 8%.
The rise of Bitcoin since its inception is perhaps even more impressive than the recent run, as the following chart shows.
Cameron Winklevoss, who along with his twin brother, Tyler, made a mission to grow the cryptocurrency market, tweeted about the evolution of bitcoin from a white paper to a $ 1 trillion idea.
A twin trained by Harvard bought $ 11 million in bitcoins in 2013, according to a report in the New York Times, and it is now worth billions.
In a tweet from Tyler Winklevoss is a chance at billionaire Ken Griffin, a hedge fund, who said on CNBC on Friday that he did not think much about digital assets like bitcoin. “I just do not spend much time on cryptocurrencies … I do not see the economic underpinnings of cryptocurrencies,” Griffin told CNBC’s “Squawk Box”. “I understand how to value a stock – the net present value of earnings – I understand how to think about exchange rates around the world,” said the founder of Citadel LLC.
Jim Bianco, president of Bianco Research, compared the move in bitcoin to Tesla’s epic run toward a trillion-dollar market value. In some ways, this comparison is considered appropriate because it was the announcement by the electric vehicle manufacturer that it was investing $ 1.5 billion in bitcoin and would eventually adopt the cryptocurrency for its products, which probably contributed significantly to the latest rise. in the bitcoin price.
Tesla’s stock TSLA,
is considered a speculative asset in itself, similar to bitcoin, and CEO Elon Musk is considered to be one of the libertarian backers who supported the creation of the crypto 12 years ago.
And if it’s hard to really think about the scale of a $ 1 billion asset, it’s an illustration that might put it into perspective.
To be sure, bitcoin at its total value of $ 1 trillion, which represents about 60% of the value of all cryptocurrencies detected by CoinMarketCap, but pales in comparison to gold, which represents a total market value of about $ 9 trillion including jewelery and bullying. as exchange traded funds.
However, Anthony Pompliano, co-founder and partner of Morgan Creek Digital Assets, speculated that bitcoin could surpass gold in 2029.