Bitcoin's market value is equivalent to the 18th largest commercial company in the United States

This article comes from Cointelegraph, author: Joseph Young
Odaily Planet Daily Translator | Yu Shunsui

At the beginning of September this year, the market value of Bitcoin hovered around 190 billion US dollars, while the price of Bitcoin hovered around 10,000 US dollars.

However, in the past two months, the price of Bitcoin has risen to $15,000. The market value of Bitcoin has soared from $190 billion to around $280 billion. This makes Bitcoin now more valuable than most large American companies.

Bitcoin's market value is equivalent to the 18th largest commercial company in the United States

If Bitcoin’s valuation were compared to companies listed in the United States, it would be on par with the 18th largest company.

The 17th largest company in the US is Home Depot, with a market value of $306 billion. Verizon is second with a market value of $242 billion, a big gap between the two.

With Bitcoin’s market cap currently around $280 billion, it’s larger than all but the top 17 U.S. companies.

Companies that Bitcoin has surpassed in recent months include major companies such as Netflix, PayPal, Bank of America, Coca-Cola, Salesforce and Disney.

In terms of valuation, Bitcoin still lags behind the three largest financial institutions in the United States, namely Visa, Mastercard and JPMorgan. For Bitcoin to surpass these three companies in market value, the price of Bitcoin would need to reach $23,000, or a market value of $426 billion.

However, to catch up with Apple, the world's largest company by market value, at $2 trillion, Bitcoin would have to reach around $120,000.
Investors begin to realize Bitcoin’s asymmetric risk-reward potential

Meanwhile, analysts expect BTC to rebound throughout 2020 and early 2021, predicting that BTC will enter a price discovery phase and hit new all-time highs.

In 2017, Bitcoin hit a new high 15 months after the 2016 block reward halving. BTC halved again in May 2020, so based on historical cycles, the probability of reaching a new peak in mid-2021 remains high.

In the long term, cryptocurrency investors and analysts say bitcoin is seen as a durable store of value, which will drive up its valuation.

Tyler Reynolds, a former Google and Morgan Stanley executive, said Bitcoin's fixed supply makes it a powerful hedge against government spending.

He wrote, “As things stand, the next bull run will be led by BTC, which is exactly what the big guys have been saying since 2011: Bitcoin’s hard supply cap makes it a durable sovereign currency (SoV) as governments debase fiat currencies to support unfettered government spending.”

Other prominent investors, such as billionaire Wall Street hedge fund manager Paul Tudor Jones, believe Bitcoin is an ideal inflation hedge.

Bitcoin is particularly attractive to institutions because it can act as a hedge in a diversified portfolio while also exposing investors to Bitcoin’s asymmetric risk-reward potential.

Bitcoin’s relatively low market capitalization compared to companies like Visa and safe-haven assets like gold suggests there is plenty of room for further growth over the next decade.

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