In a few months Bitcoin’s capitalization has increased from 190 to 280 billion dollars, exceeding the valuation of many large companies.
At the beginning of September this year, the capitalization of Bitcoin (BTC) fluctuated around 190 billion dollars. At the time the price of BTC was about $10,000.
But in the last two months Bitcoin Trend App has exceeded $15,000, and market capitalization has soaring from $190 billion to $280 billion. In other words, at this moment the total value of Bitcoin is higher than that of most U.S. companies.
Bitcoin price chart
Bitcoin equivalent to the 18th largest U.S. company
By comparing Bitcoin’s valuation to that of US listed companies, the cryptocurrency would win the 18th position.
The 17th largest company in the United States is Home Depot, with a capitalization of 306 billion dollars. It follows Verizon with a valuation of 242 billion dollars: Bitcoin would therefore position itself in the wide gap between these two companies.
In other words, in recent months Bitcoin’s capitalization has exceeded that of giants such as Netflix, PayPal, BofA, Coca-Cola, Salesforce and Disney.
Ranking of the largest U.S. companies
Bitcoin remains behind the three largest financial institutions in the United States, namely Visa, Mastercard and JPMorgan. For cryptocurrency to outperform these three companies, it would have to reach a price of $23,000 and a capitalization of $426 billion.
To reach Apple, the company with the highest valuation in the world, the price of a single Bitcoin should be about $ 120,000!
Bitcoin will continue to grow in the coming months?
However, analysts predict that the price of Bitcoin will continue to rise between the end of 2020 and the beginning of 2021, and that the cryptocurrency could even reach new historical highs.
In 2017, Bitcoin recorded a new price high about 15 months after the 2016 halving. We saw a new BTC halving in May 2020, so based on historical data we can expect a price above $20,000 in mid 2021.
Moreover, in the long term the perception of Bitcoin as a reliable value reserve could further increase its valuation.
Tyler Reynolds, a former employee of Google and Morgan Stanley, said that the fixed offer makes Bitcoin an attractive choice to protect its assets from inflation:
“Currently a bull run is emerging based on the same concepts that Bitcoin’s OGs have been repeating since 2011: BTC’s limited offer makes the cryptovalue a resilient reservoir of value, while governments devalue their fiat coins to support unbridled public spending”.
Even very important investors, such as billionaire Paul Tudor Jones, have called Bitcoin an excellent value reserve to counter inflation.
Bitcoin is particularly interesting for institutions, as it could serve as a hedge within a broadly diversified investment portfolio, while at the same time offering exposure to the enormous growth potential of cryptocurrency.
Bitcoin’s relatively low market capitalization compared to companies such as Visa and proven safe haven assets such as gold indicates that the price of cryptocurrency could increase exponentially over the next ten years.