Business News Asia
Bitcoin’s recent surge has sent its market capitalization soaring, reaching the $1 trillion mark. That makes it worth more than social media giant Facebook (NASDAQ:FB), which has a market cap of $928 billion, and also more than electric car maker Tesla (NASDAQ:TSLA), which is valued at $795 billion.
If Bitcoin continues to rise like this, there is a chance it could overtake commodities as safe havens like silver, which is worth $1.27 trillion. Bitcoin is an asset that has long been seen as a potential asset that could overtake gold, the ideal store of value.
Cryptocurrencies have become so popular that they are attracting players from traditional assets. After the market crashed earlier this month in the wake of a growing regulatory crackdown in China, the price of bitcoin rose steadily, pushing its market capitalization to $1 trillion.
Traditional investments like stocks that stand for a part of a company are significantly different from cryptocurrencies. For example, many still see shares as a safe investment because of the strict regulations, but this is exactly where the advantage of decentralized cryptocurrencies lies.
Interestingly, Bitcoin is able to hold its value even as a highly volatile asset. Instead, it has come under greater scrutiny from regulators. Over the last five years, Bitcoin’s return compared to Apple (NASDAQ:AAPL) stock was 1,692%.
Most of the gains came earlier this year, when assets soared on an influx of traditional investments led by companies like Tesla.