Following a recent rally that once again sent Bitcoin soaring to a new record high, the world’s largest cryptocurrency is now worth more than the biggest payment networks Mastercard and Visa— which combined, have a market capitalization of $871 billion.
Bitcoin’s market cap has recently surpassed $1.15 trillion, achieving an even higher valuation than the three largest banks in the world combined, when it soared to a new record of US$61,700 last week. The combined market cap of Bank of America, JPMorgan, and The Industrial and Commercial Bank of China stands at $1.08 trillion. In fact, the popularity of Bitcoin among investors has been so significant, that the cryptocurrency went from zero to $1 trillion in network value 3.6 times faster than Microsoft.
According to data compiled by Compound Capital Advisors CEO Charlie Bilello, the world’s largest cryptocurrency has performed so well, it has beaten all asset classes by at least a factor of 10 over the past ten years. Since 2011, Bitcoin’s cumulative gains have reached a staggering 20 million percent, with 2013 being the digital currency’s best performance when it gained 5,507%. Bitcoin has only been the subject of annualized losses two times in its history, declining by 58% and 73% in 2014 and 2018, respectively.
On average, Bitcoin has produced an annualized return of 230%, which is over 10 times greater than the US Nasdaq 100 Index, which ranked second and has an annualized return of 20%. The only other asset class to record double-digit annualized gains were US Small Cap stocks, which posted an average return of 12.9% over the past decade.
Information for this briefing was found via Compound Capital Advisors. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.