Just a few months ago, ethereum backers anticipated the moment when ethereum would surpass bitcoin to become the most valuable cryptocurrency. Ethereum was unable to achieve that feat before the market correction in July, and bitcoin increasingly separated itself from the pack. With Monday’s events, it now seems clear that the real Flippening we have been waiting for is not another cryptocurrency topping bitcoin; it is bitcoin itself.
Bitcoin continues to carry the total crypto market cap to record levels. Since surpassing its June peak on August 7, the total value of all cryptocurrencies has reached new heights almost daily. At present, the total cryptocurrency market cap is $139.8 billion.The current popularity of initial coin offerings has also been attributed to the rise of the cryptocurrency market cap.
After reaching a new all-time high, the Bitcoin market cap reached almost $71 billion, which puts the popular cryptocurrency on par with top S&P 500 companies like video streaming service, Netflix and famous online payment system, Paypal. According to an article by prominent website MarketInsider, Standpoint Research’s Ronnie Moas has predicted that the Bitcoin price might hit as high as $7,500 in 2018. The most exciting achievement that Bitcoin reached was the fact its market cap surpassed that of Paypal.
Many believe that PayPal is still hindering cryptocurrencies like Bitcoin and preventing them from becoming mainstream in the online payment world, but the fact that Bitcoin alone could surpass the market capitalization of PayPal may indicate that cryptocurrencies could become the future of online payments.
Bitcoin has risen nearly 825 percent in the past year alone, to about $5,700.In that run, it has added roughly $90 billion in value, crossing above $100 billion for the first time on Friday before dropping back a bit. It’s only a matter of time before it becomes a permanent member of the $100 billion club. Bitcoin is now worth more than a number of financial firms that would be its rivals, like American Express Co. ($81 billion) and PayPal Holdings Inc. ($84 billion).
Still, compared with other asset classes, like real estate or stocks, bitcoin is small, which is why some people have convinced themselves that bitcoin can’t be in a bubble. New York City real estate alone is worth more than $1 trillion.Still, compared with other asset classes, like real estate or stocks, bitcoin is a pimple, which is why some people have convinced themselves that bitcoin can’t be in a bubble. New York City real estate alone is worth more than $1 trillion.
New York City real estate is worth 10 times bitcoin, but it didn’t pass the $100 billion mark, adjusted for inflation, until the late 1970s. Apple did it in a sprightly 31 years, but that was still four times slower than bitcoin, which clocked in at about seven years with its quarterly earnings report. After all, it does have loans on its book and investors will want to know if growth is coming at an expense to profitability. There are also competitors in the digital payment market circling like bitcoin that toppled down these two giants in one swing.