Bitcoin was cutting a new story on Friday and was generating a lot of noise on both Wall Street and Main Street, as well as on social media platforms, as cryptocurrency no. 1 in the world starred in a sharp rise that brought its market value well above $ 1 trillion.
In the latest check, a single bitcoin traded near a record $ 54,827.69, up 5%, and pushed the cryptography that was written into the code in 2009 to a total market capitalization of $ 1 trillion. of dollars.
Dow Jones Market Data via CoinMarketCap
The stratospheric increase in digital assets created by a person or people known as Satoshi Nakamoto put investors in perspective on the historical movement on Twitter.
A tweet focused on Nakamoto’s email that led to the birth of the digital asset, created in the wake of the 2008-09 financial crisis. Nakamoto is credited with writing the software that created decentralized currency as a challenge to the perception that central banks printed fiat currency, such as
and EURUSD euros,
with a reckless abandonment to paper by the cracks in the financial system caused by the subprime mortgage crisis.
A trillion-dollar value-added is transcendental to blockchain-backed assets, which were worth penny fractions at first, but even in its early days demanded the attention of the financial world as this tweet from the Twitter manager associated with the cryptographic trading platform Krakken conveys, referring to the character of Mike Myers Dr. Evil:
Bitcoin prices have stagnated. They have risen close to 90% in 2021. In comparison, GC00 gold,
a rival to digital assets as value storage, has declined by more than 6% since the beginning of the year.
Meanwhile, the DIA Jones Industrial DJIA,
has risen more than 3% so far this year, the S&P 500 SPX index,
has risen more than 4% and the Nasdaq COMP Composite Index,
has returned about 8%.
The rise of Bitcoin since its inception is perhaps even more impressive than its recent release, as the following chart shows.
Cameron Winklevoss, who with his twin brother Tyler has made the growth of the cryptocurrency market a mission, has tweeted about the evolution of bitcoin from a white paper to a $ 1 trillion idea.
According to a report published in the New York Times, Harvard-educated twins bought $ 11 million in bitcoins in 2013 and that is now worth billions.
A tweet from Tyler Winklevoss shot hedge fund billionaire Ken Griffin, who told CNBC on Friday that he didn’t think much about digital assets like Bitcoin. “I just don’t spend a lot of time thinking about cryptocurrencies … I don’t see the economic foundation of cryptocurrencies,” Griffin told CNBC’s “Squawk Box.” “I understand how to value a stock, the net present value of profits, I understand how to think about currency exchange rates around the world,” said the founder of Citadel LLC.
Jim Bianco, president of Bianco Research, compared the bitcoin move to Tesla’s epic run toward a trillion-dollar market value. Somehow, this comparison is considered appropriate because it was the electric vehicle maker’s announcement last week that it was investing $ 1.5 billion in bitcoin and would eventually accept the cryptocurrency of its products that probably contributed significantly to the latter. bitcoin price increase.
Shares of Tesla TSLA,
it has been seen as a speculative asset in itself, similar to bitcoin, and CEO Elon Musk is considered to embody many of the libertarian trends that underpinned the creation of cryptography 12 years ago.
And if it’s hard to really think about the scale of a $ 1 trillion asset, here’s an illustration that could put it in perspective.
Of course, bitcoin with its total value of $ 1 trillion, which represents about 60% of the value of all cryptocurrencies tracked by CoinMarketCap, but is evident compared to gold, which had a total market value of about $ 9 trillion, including jewelry and bullion. as exchange traded funds.
Anthony Pompliano, co-founder and partner of Morgan Creek Digital Assets, speculated, however, that bitcoin could surpass gold in 2029.