Bitcoin made a new history on Friday and generated a lot of news on both Wall Street and Main Street, as well as on social media platforms, as cryptocurrency no. 1 trillion dollars.
At the last check, a single bitcoin traded close to a record $ 54,827.69, up 5% and pushed the crypto that was written into code in 2009 to a total market capitalization of $ 1 trillion.
Dow Jones Market Data via CoinMarketCap
The stratospheric growth of the digital asset created by a person or persons known as Satoshi Nakamoto has made investors put the historical movement on Twitter in perspective.
A tweet focused on Nakamoto’s e-mail that led to the birth of the digital asset, created following the 2008-09 financial crisis. Nakamoto is credited with writing software that created decentralized currency as a challenge to the perception that central banks were printing fiat currency, such as DXY dollars,
and EURUSD,
with reckless abandonment on paper over cracks in the financial system caused by the subprime mortgage crisis.
An aggregate value of billions of dollars is important for the blockchain-backed asset, which is worth fractions of a cent at first, but even in its early days it caught the attention of the finance world, as this tweet from the Twitter handle associated with cryptocurrency trading platform Krakken , referring to the character of Mike Myers Dr. Evil:
Bitcoin prices have been on a tear. They rose by almost 90% in 2021. By comparison, GC00 gold,
a rival to the digital asset as a value store, has fallen by more than 6% since the beginning of the year.
Meanwhile, the Dow Jones Industrial Average DJIA,
the S&P 500 SPX index has risen by more than 3% so far this year,
increased by more than 4%, and the Nasdaq COMP composite index,
returned by almost 8%.
The growth of Bitcoin since its inception is perhaps even more impressive than the recent one, as the following chart shows.
Cameron Winklevoss, who along with his twin brother Tyler, made the growth of the cryptocurrency market a mission, wrote on Twitter about the evolution of bitcoin from a white paper to a $ 1 trillion idea.
Harvard-educated twins bought $ 11 million in bitcoin in 2013, according to a report published in the New York Times, and are now worth billions.
A tweet from Tyler Winklevoss hit billionaire hedge funder 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 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 bitcoin movement to Tesla’s epic evolution to a $ 1 billion market value. In some respects, this comparison is considered appropriate, as it was the electric vehicle maker’s announcement last week that it was investing $ 1.5 billion in bitcoin and would eventually accept cryptocurrency for its products that likely contributed significantly to the more recent rise in the price of bitcoin.
Tesla TSLA stock,
it has been seen as a speculative asset in itself, similar to bitcoin, and CEO Elon Musk is seen as embodying many of the libertarian tendencies that underpinned the creation of crypto 12 years ago.
And if it’s hard to really think about the scale of a $ 1 trillion asset, here’s an illustration that might put it in perspective.
Of course, bitcoin at its total value of 1 trillion dollars, representing about 60% of the value of all cryptocurrencies pursued by CoinMarketCap, but fades compared to gold, which boasted a total market value of about 9 trillion dollars, including jewelry and ingots. as funds traded on the stock exchange.
Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, however, speculated that bitcoin could surpass gold in 2029.