Today Bitcoin passed the market cap of PayPal. PayPal is a worldwide online payments system that supports online money transfers. As a crypto and stock investor I think this is only a fun fact and not a good comparison. I'll explain this case in my article below. In case you missed it, you can join our Discord channel for cryptocurrency and stock investors.
Comparing the total worth of a currency with the market cap of a company is invalid. I notice this mistake more often with inexperience and experienced investors. Of course this not a big problem for the 'funny' facts but it is a problem if you want to learn people that the Bitcoin price of $4200 isn’t that much and Bitcoin is still a small financial asset. A company with a market cap of 80 billion is a big company but a currency worth of 80 billion is a fraction.
Bitcoin's market cap is worth 70 billion. You can compare Bitcoin worth with the total of money held by companies or traded worldwide. For example:
PayPal's total payment volume is 106.44 billion in the last quarter alone. Despite PayPal is using the dollar this still means that people payed far more money on PayPal this quarter alone than the total market cap of Bitcoin is. With this statistic we can see that Bitcoin is still very small and this means Bitcoin has far more space to grow.
The first market cap goal of Bitcoin for me is the annual trading volume of PayPal (this will probably be around 420 billion this year). Other statistics to compare Bitcoin's market cap with are:
Visa yearly payment volume: $7,5 trillion
Gold market cap: $7 trillion
Currency market DAILY volume: $ 200 billion
In my opinion you can compare Bitcoin's market cap with other currencies and commodities or with payment volumes. Let me know if you agree in the comments.
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Let’s keep this BOOMING!
UnknowCrypto
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