- Bitcoin could be measured against the greats names of the corporate world, given its growth potential.
- To catch up with Apple, Bitcoin would have to grow 10 times. A 60% boom would bring it closer to JPMorgan.
While Bitcoin is still on the scale of a midsize corporation, with a market capitalization of about $ 200 billion, various studies rate it as undervalued, and with enormous potential to grow as a safe haven asset. In the various growth scenarios, Bitcoin can challenge giants like Visa, Facebook and Apple in market value.
In the study on Bitcoin as an investment, published on Monday, September 21, Ark Invest analyzed several strengths of bitcoin, including its conditions as a store of value asset or its anti-confiscatory potential. By analyzing the scenarios of maximum development of these strengths, Ark Invest concluded that the capitalization of Bitcoin could reach between USD 3 trillion and USD 5 trillion in the next decade.
In these days, the price of bitcoin is fluctuating around $10,690, putting its market capitalization at $197 billion. This positions Bitcoin above the net worth of Jeff Bezos ($175 billion) and below the market value of JP Morgan ($284 billion).
In the following graph from Ecoinometrics, the value of Bitcoin is represented on a graphical scale. Each point represents the market capitalization of the companies, proportional in size. Next to each point is the approximate price that bitcoin would need to equal the value of the respective company.
It can be seen then that it would be enough for bitcoin to slightly exceed its historical maximum to have the same market capitalization as Visa. If bitcoin doubles the all-time high of 2017, it would reach the value of Facebook, the main social network on the planet.
A more demanding goal would be to catch up with the company with the largest market capitalization today, Apple. To do this, bitcoin would need to exceed $100,000, or 10 times its current value.
Comparisons can be extended to a larger domain. How much does bitcoin need to appreciate for the first cryptocurrency to reach the capitalization value of gold? About 47 times, as the price of BTC would have to go up to around half a million dollars to equal the capitalization of gold.
There is already an analysis published by the Winklevoss brothers, in which they just compared bitcoin with gold and found various advantages of the cryptocurrency with respect to that precious metal. The conclusion of the Winklevoss was the same: bitcoin has the strength to challenge gold as a store of value and could match its market capitalization if it reached a price of $500,000.