Over the past hour, Bitcoin’s market cap has crossed the $ 1 trillion level. The achievement came less than a year after the market value fell below $ 100 billion on Black Thursday, and the move to a new permanent high occurred after the price of BTC was about to cross $ 55,000.

The significance of this event will not be lost for those in the economic sphere, as only a few assets have reached this status. Although Bitcoin may have been a source of curiosity in 2009, it took only 12 years to become a global asset with a market value of $ 1 trillion.

For those unaware of Bitcoin’s unique price record, 10,000 BTC was sold on the Bitcointalk.org forum in March 2010 for $ 50, but no buyer was found.

Two months later, Laszlo Hanets bought two pizzas for 10,000 BTC, the rest is history. Thus, during the first sixteen months of its existence, Bitcoin was somewhere in the middle of a collectible set with no cash value and experience among enthusiasts.

Gold and silver have a much older history

Aside from Bitcoins, there are only seven tradable assets with market values ​​of over $ 1 trillion, according to 8marketcap. Of course, there is gold and silver on this list because they are synonymous with money and have served as a repository of value for over 4,000 years.

Despite dropping gold from the mint and reserve requirement for fiat currency, gold is still widely used by central banks, mutual funds, and retail investors. While precious metals have the advantage of being relatively stable in supply, many of them develop a company’s ability to make profits.

For example, Amazon was founded in July 1994 as an online bookstore. Today, the mega-conglomerate is making money from cloud computing, digital broadcasting, film and television production, gadgets, supermarkets, e-commerce, and artificial intelligence.

Amazon raised $ 8 million in startup capital from Kleiner Perkins in June 1996, and the company lost $ 5.8 million that year, even though fourth-quarter sales doubled from the previous quarter. Amazon’s initial IPO price in May 1997 was between $ 12 and $ 14, but it ended at $ 18, valuing the company at $ 438 million.

It took Amazon 27 years to reach a $ 1 trillion market value, and it took 27 years. Meanwhile, Microsoft, founded in April 1975, has crossed the trillion dollar mark after 45 years (June 2019). Google launched in September 1998, and after 22 years (January 2020) the company crossed the trillion dollar mark.

Will Bitcoin Pick Up Gold Next Time?
According to the inflation-adjusted data, the market value of gold in 1972 exceeded $ 1 trillion. This price is equivalent to $ 450 an ounce, and breaks the downward trend that began in 1939 during WWII.

Before wondering whether BTC will surpass the market value of gold and its position as a global store of value, it is important to consider that assessing a multi-faceted technological advantage such as Bitcoin is unfair compared to traditional investment.

BTC is a digital value store that also operates as a peer-to-peer payment network. Also, censored features cannot be mimicked with third-party resources.

Finally, unlike gold, Bitcoin is a common programmable protocol and database. If quantum computing somehow cracks the SHA-256 encryption, the network can fix the solution automatically, even if it’s only temporary.

In August 2010, 92 billion BTC were returned after exploiting the transfer error. The decision meant the network fully agreed to the transfer, proving that the final security consensus was in the user base.

How would gold enthusiasts react if asteroid mining became a reality? What if a very “genuine” and very expensive counterfeit gold was put on the market, making mass testing a necessity for any trade? These are questions Bitcoin investors should not be concerned about.

In addition, companies are exposed to fraud risks, significant additional offerings, liabilities, and potential regulatory changes. Meanwhile, the decentralized protocols are virtually immune to these risks, which would justify a much higher score in Bitcoin’s case.

Bitcoin’s path to becoming a multi-billion dollar asset appears to be much easier than gold and silver

Source: CoinTelegraph