19th February, 2021 will be remembered as the date when Bitcoin hit the market cap of $1 Trillion.
As observed on the eve of 19th February Bitcoin surged over $53,910 in the crypto trade market.CoinDesk’s chart showed Bitcoin to have surged over 5% on Friday. Which eventually led to Bitcoin increasing its market cap above $1 Billion. This is the first time in the history of Bitcoin that its market value crossed the Billion-dollar benchmark.
Bitcoin later in the day kept on a bull run and closed the day with its trading value around $54,000. Bitcoin has surged over 86% since January 1st of the new year.
The main competitors of Bitcoin currently are gold and dollar. However, both of them have not shown any impressive growth since the advent of the new year. In fact, the dollar is being hardly hit by the inflation being caused by the coronavirus pandemic. The gold, instead has always showed its hedge over the devaluing property of the dollar. Gold has been the favorite of investors and those who are willing to secure their profits, for some time now. But a lot of interest has shifted towards crypto within the last 12 months.
In comparison to all that the S&P index is experiencing a gain of 4.5% to date. Whilst the Nasdaq index expected to have gains of over 8% later in the year.
Chief Market analyst at AvaTrade, Naeem Aslam showed his pleasure through an email about Bitcoin reaching this new benchmark. He said the trillion-dollar price of Bitcoin is the most exciting news of 2021. He also said that this was inevitable and that after some time market cap of the gold will be flipped.
Such popularity of a digital asset created only 12 years ago by some unknown person or persons was unforeseeable. Some say that it has only been made possible by the entry of institutional investors and other cryptocurrencies.
Earlier this month when Tesla Inc. revealed that it acquired Bitcoins worth of $1.5 billion in January, Bitcoin gained more hype. This reveal was followed by a statement that in the future the company may be accepting the world cryptocurrency leader.
On Thursday, Elon Musk tweeted to explain that the decision of Tesla had nothing to do with him. According to him having a lesser dumb liquidity mode than cash was adventurous for a company included in the S&P500 index. Musk then tweeted that he was an engineer and not an investor with an emphasis on “not”. He said that with conventional currencies facing a decline in value only fool a wouldn’t be looking for a substitute. Resorting to his casual style at the end of the tweet, he called Bitcoin to be as bullshit as fiat money.