Bitcoin is now the world’s 13th largest cryptocurrency by market cap after taking the place of the Swiss Franc. This happened after an outstanding surge this week that saw the worth of Bitcoin increase to more than $66000.
The price gain of Bitcoin reflects on other main cryptocurrencies like Ethereum, which also reached a new high.
Comparing the market cap of Bitcoin with other large companies across the globe, it holds a higher place than Tesla and Facebook. The crypto market as a whole currently holds more worth than Apple, the world’s most valuable company with a market cap of more than $2.5 trillion.
The Bitcoins record-breaking rally has increased its worth by more than 50% since the start of October.
Bitcoin launched its first Bitcoin Futures-Traded Fund (ETF) on the New York stock exchange early this week. This Bitcoin ETF opened Bitcoin to a new set of investors.
Analysts in the cryptocurrency market expect The US Securities and Exchange Commission (SEC) to approve more Bitcoin ETFs in the coming months. Also, the prices of Bitcoin might go parabolic by the end of 2021.
Following a statement by David Wachsman, CEO of emerging tech consultancy Washman Independent, the Bitcoins market cap has surpassed the trillion mark, and this move indicates that the parabolic rise will continue.
“Bitcoin’s market cap has passed the trillion dollar mark, indicating that Bitcoin’s parabolic rise continues,”
said David Wachsman
The parabolic prices might mean further consolidation, resulting in more bitcoin futures ETFs in the US.
Futures ETFs have been considered complex financial products, but the narrative is changing. The launches are indicators of how the asset class has gone mainstream.
Analyzing Currencies Using Standard Bitcoin Approach
According to Fiatmarketcap.com, BTC is the best form of money out there, but people won’t get it. Therefore, it takes a Bitcoin standard approach to analyze fiat currencies. To achieve this, it measures the biggest currencies in the world in terms of market cap as priced in Bitcoin.
Also, Fiatmarketcap.com uses Bitcoin to measure the gross domestic product, and Bitcoin takes the eighteenth position.
As time goes by, the world accepts Bitcoin more and recognizes it as a stable, portable, scarce, and divisible currency. The Bitcoin adoption process is also increasing, with more individuals and companies accepting it as a form of exchange. With increased usage, there is hope for a well-established history of success.
If people can start thinking of currencies the Bitcoin way, it will be easy to change their motivations in making economic decisions. With the increase in money supply, inflation follows, and prices increase. This is the view of the economy we get from the fiat economy.
On the other hand, the Bitcoin standard aims to restore economic confidence by offering an economy without inflation. Since the government or the central bank does not control Bitcoin, the purchasing power remains in the hands of the people.
The fiat system operates on the principle of debt. People borrow money to satisfy needs immediately instead of saving.
On the other hand, the Bitcoin economy encourages saving today for long-term purchasing power.