The cryptocurrency market capitalization hits $1 trillion as of today which means around 1% of all money in the world is now held in BTC, ETH, and another crypto as we can see in our crypto news today.
The global market capitalization hits $1 trillion which is roughly 1% of all money in the world. This figure will continue growing as experts say. It is hard to say whether these are all crypto in existence but this is another major milestone for digital assets. Behind the milestone, there’s a new financial crisis lurking which caused money to flow into gold but also out of gold and into Bitcoin. While BTC gains are spilling into altcoins, we will see greater diversity and an even spread among the large-cap altcoins. It’s also likely that BTC will capture at least 10% of the gold market as Antoni Trenchev from Nexo crypto lending service explained.
Bitcoin is of course the absolute leader in terms of cryptocurrency market capitalization as it has surpassed the $674 billion level and sucked two-thrids of the market. ETH is ranked second with a market cap of $135 billion and these are the two cryptos ranked among the 100 biggest assets in the world. Geoff Morphy, the president of the Canadian mining operation Bitfarms argued that this milestone is still only the beginning since people will continue looking for other ways to preserve or to increase the value of the assets:
“For 5,000 years, people have utilized some form of currency. Before that, they bartered goods. Either way, for thousands of years, people have recognized value and have been incredibly resourceful and creative in their ways to increase value or at the very least, preserve their net worth positions. People are no different today.”
He noted that there’s a difference in the sophistication level as it is much higher and people have considerable options today. They also see their net worth positions eroding because of the inflation or other devaluation events which is where BTC comes into play:
“Case in point, people have debated for decades as to whether gold is an effective safe-haven or hedge. With the emergence of Bitcoin and other cryptocurrencies, new alternatives exist. Bitcoin by design is safe, secure, easily traded, cannot be manipulated, and is inherently scarce since only a finite number of BTC can ever be minted.”
He argued some more that cryptocurrencies are not responsible for increasing the global net worth as BTC and others are beneficiaries of people that make decisions to move assets from one asset class to another in order to preserve the value of their net worth.”
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