Bitcoin Valuations Now Surpass Many National Currencies
In the past two weeks, Bitcoin has registered an unprecedented run in its valuations amidst announcements of launch of Bitcoin futures contracts by CME Group by the year end. In this bullish run, Bitcoin has not only broken its own highs several time, it has also crossed major conglomerates in terms of valuations.
Currently BitGo lead engineer and bitcoin developer – Jameson Lopp – has shared some stats by creating a clone of the global M1 index. This matrix is used to evaluate the money supply of a country and compares bitcoin rankings global currencies used in majority like the U.S Dollar and the Japanese Yen.
As per the data gathered by Lopp and his M1 index clone, Bitcoin is currently ranking as the 32nd most valuable currency with a market valuation crossing $122 billion. The stats show that Bitcoins market valuations is greater than several national currencies like Thai Baht, Singaporean dollar, Malaysian Ringget, and the Brazilian Real.
In past one year, there has been huge surge in the participation of institutional and retail investors in Bitcoin purchases and many other prominent investors like Bill Miller have churned out million dollar by investing in Bitcoin. Its decentralized nature of functioning bypasses banks and makes it easy for users to make cross-border payments faster and at low cost. This is the reason many investors have been flocking their wings to invest in cryptocurrency. Moreover, the autonomy of the centralized banking institutions is reduced and remains in the hands of multiple users in the Bitcoin’s blockchain network.
Many believe that this is just the beginning and this new fintech revolution of digital currencies has miles to go ahead. Also, note that Bitcoin has a supply cap of 21 million coins. This means that as we close to reaching the upper limit the demand will increase leading to increase in its price in the long run.
Bitcoin and security expert Andreas Antonopoulos explained the benefits of Bitcoin over fiat currencies saying:
“To me, Bitcoin represents the choice to use alternatives where otherwise it would be prohibited to use alternatives. Bitcoin is a global currency and Bitcoin is the de facto currency of the internet today. Bitcoin is is the most successful open borderless currency that has ever existed. It is already a reference of value for many of the people at this conference, it has been my source of income for the last three years, almost exclusively, and it is a foundation of my ability to travel around the world and advocate it. I am already using it as my preferred currency for the vast majority of my expenses. I do that voluntarily.”
However, till now there have quite a lot of mixed sentiments from prominent industry players about Bitcoin and its future. At any point investors should make the necessary research at the self-end before investing in these instruments.
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