Colin Simpson’s article in Bloomberg is extremely interesting as it analyzes the current value of Bitcoin vis-à-vis the industry heavyweights. According to this article, Bitcoin’s stratospheric rise means that the cryptocurrency’s market value is now more than the worth of some of the world’s biggest billionaires and even more than some countries’ economies.
Just this year alone, Bitcoin has jumped 1000%. The cryptocurrency’s market capitalization has been put at $190.75 billion by Coinmarketcap.com.
Here are some of the people/organizations/countries that have been overtaken by Bitcoin now.
- New Zealand is valued at about $185 billion, according to the data released by the World Bank in July this year. In fact, Bitcoin’s value is higher than even Qatar, Hungary and Kuwait.
- Boeing is one of the biggest companies in the world. In fact, the more than 100 year old company calls itself “the world’s largest aerospace firm”. Boeing is headquartered in Chicago but is spread over 65 countries and has more than 140,000 employees under its umbrella. It has a market capitalization of $162 billion.
- Bitcoin is even more valuable than the two most influential banks in the world combined. If you were to combine the market capitalization of Goldman Sachs’, which is currently at $97 billion, and that of UBS Group, which has a market cap of $67 billion, it would still not be as valuable as Bitcoin is today. While these two banks have taken a stand-offish approach to the cryptocurrency, many other reputable banks have started to deal with bitcoin and blockchains.
- Bitcoin is now more valuable than the Queen, Warren Buffet and Bill Gates and the number one billionaire in the world – Jeff Bezos. According to the Bloomberg Billionaires’ List, Bezos is worth $98.5 billion, Bill Gates is worth $89.8 billion and Warren Buffet is worth $83.4 billion. The Queen of England, well, she doesn’t figure in the top 100 billionaires’ list; her net worth is about $383 million. Even if Bill Gates and Warren Buffet were to put their net worth together, they still wouldn’t be as valuable as the Bitcoin is right now.
It was just in August, just four months ago, that Bitcoin was trading at $3,486.73, which was a record high for the cryptocurrency. Bloomberg reporter Lily Katz has written a similar article about the value of the cryptocurrency then. Bitcoin’s market capitalization at that time was just $56 billion (“just” in comparison to where the cryptocurrency stands today). At that time, the cryptocurrency’s value had just crossed General Motors’ and was on the verge of taking over Tesla’s market valuation.
People were crying “bubble” then, are still crying “bubble” now. According to a report published by Bank of America’s strategic team in August, they felt that there was no way to evaluate how long the bitcoin was going to continue to gain.
Four months later, the cryptocurrency has beaten all expectations, trading at more than $11,000. Ironically enough, an article published on October 21 by Bitcoin.com showed the results of a survey conducted by CNBC on its online readers. According to the survey results, more than 50% of the 20,000 respondents felt that the Bitcoin would rise above $10,000.
Analysts, on the other hand, were more conservative in their estimates. Standpoint Research felt that Bitcoin would reach $7,500 in the “near future”. Fundstrat Global Advisors, Pantera Capital Management and GFI Group Inc. all said they believed that Bitcoin would reach $6,000 by year end. In fact, GFI Group’s John Spallanzani said he expected Bitcoin to reach 10,000 in 2018.