Bitcoin Reaches For TOP-10 Largest Companies' Market Cap
13 December 2017 | World Views | Dwaine van Vuuren
 


Bitcoin peaked at $17,803 a day before the Chicago Board Options Exchange (CBOE) launched their Bitcoin futures, paving the way for institutional involvement. This was accompanied by a peak of R249,995 per Bitcoin on the local Luno exchange.

On 15th Dec, the CME Group launch their Bitcoin futures product. What is interesting is that the CBOE launch was just a taste of institutional demand, as CME is orders of magnitude larger in terms of audience/users.

Have a look at how daily trading volume in Bitcoin has been climbing. The CBOE launch was on the last data point on the below chart. At $20bn per day, Bitcoin daily trading is 3-4 times larger than that of Apple or Amazon.

Click image to enlarge

Which brings us to the next interesting milestone. The total market capitalization of Bitcoin now sits over $290Bn as shown below when compared to the world’s largest companies by market-cap using current prices.

The last column is interesting - it shows what price Bitcoin must attain to match the market cap of the respective company. To reach the top-10 position requires a price of $21,000. To be bigger than Tencent or Berkshire Hathaway, Bitcoin needs to reach $30,000 (assuming of course that Tencent and Berkshire share prices have not also risen).

When measuring Bitcoin, we prefer to look at the whole Bitcoin Family that hard-forked from the original blockchain. In other words, if you held Bitcoin in a wallet where you controlled the private keys, you would have inherited the Bitcoin Cash and Bitcoin Gold forks (for free), so long term holders of Bitcoin would see price appreciation much greater than Bitcoin itself.

Bitcoin Forks Price Index (BFPI) - 11 December 2017 $18,615

BFPI = Bitcoin, Bitcoin Cash and Bitcoin Gold  combined  blockchains

(What you would observe by holding Bitcoin and all its air-dropped  forks)

Click image to enlarge

Bitcoin Forks Price Index (BFPI) - Market Capitalisation - 11 December 2017 $18,615

BFPI = Bitcoin, Bitcoin Cash and Bitcoin Gold  combined  blockchains

(What you would observe by holding Bitcoin and all its air-dropped  forks)

Click image to enlarge

If, like we recommend to our Crypto Club members, you keep holding Bitcoin and all the forks you inherit for free then not only do you get some diversification, but you get better gains. Contrary to popular belief, when a fork occurs on the main Bitcoin network it actually boosts the price over the medium term even though there is a small price drop of the main chain in the short term.

If you consider that the whole Bitcoin fork family market cap peaked at $325Bn that would put it just a whisker under 10th place.

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Dwaine
Dwaine van Vuuren
Retail-side Research
RecessionAlert, Sharenet Analytics

Dwaine van Vuuren is a full-time trader, global investor and stock-market researcher. His passion for numbers and keen research & analytic ability has helped grow RecessionALERT.com (US based) and PowerStocks Research (now Sharenet Analytics) into companies used by hundreds of hedge funds, brokerage firms, financial advisers and private investors around the world. An enthusiastic educator, he will have you trading and investing with confidence & discipline.


Disclaimer:
The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.

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Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.
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