The total value of the digital currency Bitcoin surpassed the value of all silver holdings worldwide on Monday. According to calculations by the specialized portal ‘Infinite Market Cap’, all Bitcoins were worth more than $1.42 trillion for the first time. The oldest cryptocurrency thus left behind the total value of silver ($1.38 trillion).
On Monday afternoon, Bitcoin broke the $72,000 threshold on the stock exchanges. Asset managers such as BlackRock, Grayscale and Fidelity, who have launched Bitcoin funds in the US, are responsible for the rapid rise in Bitcoin’s price in recent months. These Bitcoin ETFs were approved by the US Securities and Exchange Commission in January. They allow investors to invest in Bitcoin without having to directly purchase or hold the digital currency itself.
Gold is the most valuable asset in the world
Bitcoin’s rally started last fall. Since the beginning of this year alone, digital money has risen by approximately 62 percent against the US dollar. Gold tops the list of the most valuable investment products in “Infinite Market Cap”. Here, the total assets worldwide are ten times the value of Bitcoin ($14.7 trillion).
Listed companies follow in the rankings: Microsoft is in second place with a market value of $3.02 trillion, followed by Apple ($2.64 trillion) and the AI chip manufacturer Nvidia ($2.19 trillion).
Sensitive to fluctuations
With the new Bitcoin all-time high, there is no guarantee that the Bitcoin price will continue to rise in the future. After the previous high of around $69,000 on November 10, 2021, the price fell to below $17,000 within a year, also because the scandal surrounding criminal activities around the crypto exchange FTX shook investor confidence.
Bitcoin’s strong price development will likely also play a role in an event expected on April 20: the next so-called halving. The reward Bitcoin miners receive for verifying crypto transactions will be halved. Ultimately, the process leads to a slower growing supply of Bitcoin, which has usually led to rising prices in the past.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
