Bitcoin continues to score more victories as more and more convenient news for the largest crypto assets is coming from the industry. With each passing day, Bitcoin is becoming too important to ignore as it has become the world’s 8th largest asset by market cap and the third-largest currency in terms of the total value in circulation.
Last Friday, Deutsche Bank Research published a report entitled “Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?”. The report says that Bitcoin is here to stay and has become too important to ignore. The report’s summary reads:
“Bitcoin’s market cap of $1 trillion makes it too important to ignore. Big players who buy and sell bitcoins have considerable market-moving power. As long as asset managers and companies continue to enter the market, Bitcoin prices could continue to rise.”
According to the stats, Bitcoin’s total value of $1.07 trillion is around 102% of the yen in circulation, 65% of the euros, 53% of the USD, and 904% more than the GBP. But despite these bullish market conditions, the asset will remain ultra-volatile as few large purchases and market exits could significantly impact the supply-demand equilibrium.
The report further states that central banks and governments have understood that cryptocurrencies are here to stay, and they are expected to start regulating crypto-assets late this year or early next year.
By market cap-wise, Bitcoin is registering new achievements. As Crypto Economy reported, Bitcoin market value now worth more than the value of the world’s thee largest payment companies combined. With that, Bitcoin is now also the world’s 8th largest asset. Now only five companies have more value than Bitcoin that include Apple, Saudi Aramco, Microsoft, and Amazon.
Furthermore, companies involved in Bitcoin mining are also enjoying great times as according to Leeor Shimron, vice president of digital-asset strategy at Fundstrat Global Advisors, Bitcoin mining stocks have been far more profitable than Bitcoin itself for the last 12 months. According to the analyst, the average return for shares in the four-largest publicly-traded mining firms — Marathon Digital Holdings, Riot Blockchain, Hive Blockchain, and Hut 8—to have been 5,000%, while BTC has gained 900% over the same period.
Some sources also suggest that Microsoft has also started accepting Bitcoin as payment for its Xbox platform.
Since its early days, Bitcoin has been declared dead about 400 times. But with some ups and downs, it continued to climb the ladder, and now it is an asset that no one can ignore.
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