This year, cryptocurrency has been one of the best-performing asset classes. Bitcoin first began trading in 2009, and as of Oct. 19, it was close to reaching an all-time high of almost $60,000. General Electric Co. shares were just under $3 after adjusting for dividends, and stock splits since 1995.
A deep dive in Bitcoin vs. Ethereum
No other cryptocurrency even comes close to Bitcoin, which trades under the symbol BTC. Bitcoin’s market capitalization has officially surpassed $1 trillion. Do you know that the overall market capitalization of all cryptocurrencies is approximately $2.5 trillion, and Ethereum is the second-most valued digital currency, with a market capitalization of around $450 billion? The Winklevoss twins, prominent Harvard grads who say Mark Zuckerberg stole their concept for Facebook Inc. (FB), notably sought to launch a Bitcoin exchange-traded fund, but the US Securities and Exchange Commission rejected them.
In the investment world, cryptocurrency is becoming more broadly acknowledged. Individual and institutional investors are becoming interested in crypto assets which is a green signal for new investors. The SEC just permitted the first Bitcoin futures ETFs to trade, indicating that interest is only going to grow.
A decentralized currency, independent of the Federal Reserve or any other central bank, with a predetermined maximum supply, is an appealing notion that people all around the world can understand. The market’s high regard for Bitcoin has been thoroughly tested over the past several years; this update is a relief to those interested in Bitcoin.