Holger Zshaepitz, a market analyst at Welt, confirmed that Bitcoin (BTC) is close to valuing Google as its market value approaches $ 1.5 trillion.
Currently, as of April 17, Bitcoin has a market cap of around $ 1.12 trillion with the crypto market’s total valuation still above $ 2 trillion.
What are the similarities between Bitcoin and Google?
The similarity between Bitcoin and Google, as Zshaepitz pointed out, is that both have dominant positions in their respective sectors.
Bitcoin vs Google Market Value. Source: Bloomberg, Holger Zschibitz
Bitcoin has the strongest network influence in the cryptocurrency market and accounts for more than 51% of the global cryptocurrency market.
Google dominates the search engine market and has a large share in the video sharing and live streaming sector, as it owns YouTube.
“Exponential Age: Thanks to network effects, #Bitcoin is increasing in value, and nearly $ 1,159 trillion has reached the market value of Google’s classic stock of $ 1.5 trillion.”
Whether or not Bitcoin’s dominance in the cryptocurrency market will continue in the long run is questionable due to the growing acceptance of Ethereum and its individual blockchain network.
However, the biggest difference between Bitcoin and the rest of the market is that there is a clear institutional demand for BTC as a store of value due to the unparalleled computing power of the blockchain networks and hence security and reliability.
Thus, investors generally view Bitcoin as a vehicle for inflation hedging and a de facto reserve digital currency.
In January, strategists at JPMorgan wrote that Bitcoin could rise to $ 146,000 as it competes with gold as a store of value.
The strategists said:
“This potential rise in the long term, based on the market value equation of bitcoin with gold for investment purposes, is driven by the volatility of Bitcoin with gold in the long term. The reason is that for most institutional investors, the volatility of each category is important when it comes to managing portfolio risk, and whenever The greater the volatility of the asset class, the greater the risk capital that that asset class consumes.
Traditional financial institutions are also realizing the importance of the Bitcoin network’s influence and dominance in the cryptocurrency market as a store value.
Where does the bitcoin price go from here?
For the foreseeable future, after Coinbase’s public listing, the mood around Bitcoin will remain mixed.
After the COIN listing, there are speculations that it could herald the top of the cryptocurrency market.
However, most market data and market indicators, such as funding rates, do not necessarily indicate that peak emissions are near.
For example, a trader known as “Crypto Capo” said:
“I have read a lot of people who said that financing is great, not only in bitcoin, but also in alternative currencies. This is relative. If we compare current funding levels to higher levels in 2017, we can see that they are low when we take a rate three times higher. The current trend is driven. Also, spot trading, not derivatives. ”
Meanwhile, significant accounts in the chain also indicate that the bitcoin price is still far from the top of the beef market. In contrast, the price of BTC could easily go up to six figures as expected for the popular exchange model, and even reach $ 400,000, according to Bloomberg analysts.