With a market cap of $1.07 trillion, Bitcoin now accounts for 9.85% of Gold’s $10.9 trillion. The cryptocurrency’s market cap alongside its value surged from 2020 Q4, with the asset hitting an all-time high of $57,800 on March 12, 2021.
The digital currency’s market capitalization also represents about 53.08% of Apple’s $2.07 trillion. Elsewhere, Silver has a market cap of $1.42 trillion, Bitcoin accounting for 76.09%.
Although Bitcoin is still miles away from catching up with gold, proponents believe it will one time become a store of value as institutional adoption increases.
Bitcoin’s, gold’s resilience tested during pandemic
Bitcoin’s and gold’s resilience during economic downturns were tested amid the coronavirus pandemic in 2020.
For Bitcoin, its value surged after dropping alongside the traditional markets back in March last year. Elsewhere, gold hit an all-time high in August by trading for the first time above $2,000.
Following the traditional market crash, the pandemic has forced some tightening in the gold and Bitcoin relationship.
Historically, Bitcoin tends to trade closer to equity markets despite the massive volatility. However, as more people continue to invest in the asset, its price will likely stabilize.
Worth noting is that Bitcoin is liquid enough and securely stored with a guaranteed limit on supply. For gold, its custody is expensive.
Both assets are free from the government’s control, but gold is held by central banks, and it potentially means its price can be manipulated. Therefore, Bitcoin proponents believe that lack of control and state manipulation means the asset will eventually overtake gold.
At the same, Bitcoin supporters believe that the market capitalization will surpass Apple even as it closes in on silver.
As Bitcoin’s popularity and acceptance continue, it could mean a wider adoption in the future.