The recent surge in the price of Bitcoin has made the cryptocurrency to become the 8th most valuable asset in the world. The total market capitalization of Bitcoin hits $1.180 T as its price hits $62,944 over the weekend.
Data received from CompaniesMarketCap revealed that Bitcoin has now surpassed Facebook, the world's most used social media, and Tesla, the electric car manufacturer in market capitalization. Facebook has a market cap. of $915.64 B while Tesla has a market cap. of $844.52 B. Berkshire Hathaway, a company owned by the renowned investor, Warren Buffet, was also left behind as it has a total market cap of $643.50 B.
Silver, which is currently the 7th most valuable asset in the world, has a total market cap. of $1.314 T with a price of $23.35 per ounce. Silver lost over 20% of its value as its price dropped from $28 to $22 per ounce in less than 5 months. The recent crash in the price of metals, including Gold, the most valuable asset in the world, has been due to the recent strength in the US Dollar, and most importantly the surge in the crypto market. Rumor has it that investors are pulling out their money from Gold and Silver to invest in Bitcoin to earn more profit despite the high risk involved.
The money market is changing, and for cryptocurrencies to be more stable with less volatility, investors will have to balance up their portfolios by selling their shares on less-performing assets to purchase high-performing assets.
Since March 2020, the price of Silver has increased by 125%, Gold's price has only increased by just shy above 35% while the price of Bitcoin has increased by 900%. The difference is huge and it is only rational for investors to drop their metal assets for Bitcoin. Despite the huge volatility in Bitcoin, it is far more profitable compared to the metal assets, and it is understandable if investors only care about making profit.
Bitcoin's $1.180 T total valuation needs to exceed 17.33% to surpass Silver's $1.314 T total valuation. And it also needs to exceed over 900% to surpass Gold's $11.231 total valuation.
If Bitcoin creates a new all-time high this week, it might surpass Silver's market valuation. But it can only be a dream come true for Bitcoin investors for Bitcoin valuation to exceed that of Gold because its price has to increase by over 900%.