Crypto overtaking world’s most valuable company, proves doubters are wrong
Here’s something that will stir-up the crypto cynics and Bitcoin bashers – the cryptocurrency market is now worth more than the world’s most valuable company as Bitcoin and other digital currencies experienced a price hike on Thursday.
The total cryptocurrency market capitalisation is now $2.37 trillion, overtaking the $2.33 trillion market cap of Apple.
The world’s largest crypto has hit a new five-month high this week, smashing through $58,000 to close in on its record all-time high of $64,000.
Last month, the sleepy sceptics were able to enjoy falling Bitcoin prices as China, once again, reiterated its anti-crypto stance. It triggered tired financial traditionalists to trot out their claims that cryptocurrencies are nothing but a fad, and not a bonafide asset class, medium of exchange or store of value.
They go quiet when prices are rising, as they are now.
No-one disagrees that cryptos can fluctuate wildly – and this can be good news for investors too – but there should be no denying that cryptocurrencies are only going to become increasingly dominant in the global financial system.
As digital currencies move to take over the market cap of Apple, let’s put it on record for those who consistently try and delegitimise the crypto market why they are placing themselves on the wrong side of history in this regard.
The key points
There are five key factors driving investors towards cryptocurrencies…
First, inflation. There are legitimate and growing concerns about inflation as economies re-open and pent-up demand is unleashed by households, businesses and entire industries, but is met with supply shortages.
Bitcoin is widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.
Second, institutional support. There is growing investment from major institutional investors, bringing with them capital, expertise and reputational pull.
Third, regulation. Global financial watchdogs are increasingly looking into establishing a regulatory framework. Why? Because they’re taking crypto more and more seriously as a financial asset and a medium of exchange.
Regulation, which I believe is inevitable, would give more protection and, therefore more confidence, to both retail and institutional investors.
Fourth, demographics. Millennials – who are beneficiaries of the largest-ever generational transfer of wealth, predicted to be globally more than £43 trillion from baby boomers to millennials over the next three decades – have grown up on technology. They are digital natives. Cryptocurrencies are, by their very nature, tech-driven.
In addition, they are decentralised, so not controlled by any financial institutions which are largely viewed as outdated and untrusted by millennials.
Five, the future of money. Savvy investors appreciate the inherent value of digital, borderless, global currencies for trade and commerce purposes in our increasingly digitalised economies in which businesses operate in more than one jurisdiction.
As such, cryptocurrencies are regarded as the future of money.
I would suggest that those still continuing to deny cryptocurrencies’ growing status would have probably been the people who previously dismissed tech gamechangers Apple.
deVere Group CEO and founder