Here’s how the traders view Apple as it hits $2 trillion market cap
Apple’s capitalization is several times higher than the entire crypto market
Cryptocurrency capitalization remains negligible compared to other sectors
Cryptocurrencies are inferior in capitalization to IT giants, gold and shares
DeFi Market May Increase Cryptocurrency Market Capitalization, But Not For Long
Despite the fact that cryptocurrencies are successfully developing all over the world, the digital assets sector remains negligible in comparison with other corporations..
Cryptocurrency can’t compete with Apple
According to the CoinMarketCap resource, the capitalization of the entire cryptocurrency market is $ 342.8 billion. Despite the fact that the sector is developing rapidly, digital coins cannot yet compete with tech giants. For example, Apple’s capitalization is $ 2 trillion, and the value of one AAPL share is trading at $ 120 per share..
Experts expect that in the next few years, the capitalization of the cryptocurrency market may triple, but even then it will not be able to reach Apple’s indicators. On the other hand, the relatively small capitalization of cryptocurrencies shows that the market is quite young and promising. This means that digital coins also have huge potential for development..
The founder and head of the CryptoArt cryptocurrency fund, Andrei Tonkolitko, in an exclusive interview with BeInCrypto, said that the digital currency market is just entering the development stage and cannot yet compete with other sectors or individual companies..
“Bitcoin, and the entire cryptocurrency market, is still in the development stage. And the capitalization is very small here. I will give figures for comparison: the capitalization of the cryptocurrency market is now about $ 0.25 trillion. The capitalization of Apple alone is $ 2 trillion, the capitalization of the gold market is $ 77 trillion. And every year bitcoin will strengthen its position in society, and the price will rise. This is why Bitcoin is called the currency of the future. Against the background of the general crisis and the depreciation of money, the value of cryptocurrencies will increase, ”he said.
His American colleagues are in solidarity with the Ukrainian expert. So, the founders of the Gemini cryptocurrency exchange Cameron and Tyler Winklevoss predict an increase in the value of bitcoin to $ 500,000, which will significantly increase the capitalization of the cryptocurrency market..
“Today the market capitalization of overground gold is conservatively $ 9 trillion. If we are correct about using a gold base to value bitcoins, and bitcoin continues down this path, then the most likely scenario for bitcoin is that it is undervalued by a multiple of 45. In other words, bitcoin’s price could rise 45 times. This means we can see a price of $ 500,000 per bitcoin, ”said the Winklevoss brothers..
At the same time, experts are confident that Bitcoin will displace $ 11.7 trillion of fiat currency reserves held by the US government.
Cryptocurrencies are a bubble
However, crypto opponents disagree with such predictions, who believe that Bitcoin and other cryptocurrencies are just hype. For example, world renowned investor and billionaire Warren Buffett believes that the value of bitcoin is comparable to a seashell..
Bitcoin skeptic Peter Schiff voiced similar statements. He argues that gold is a justified and profitable investment, while bitcoin has no value and can crash to $ 1000..
Since the beginning of summer, the decentralized finance market has shown rapid growth. DeFi TokensDecentralized Finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to open, effective and … More prices rise by 100-200% per day, exceeding all possible maximums. However, experts say that you should not rely too much on a speculative asset and hope that it will drastically change the development of the entire cryptocurrency market. In a comment for BeInCrypto Sergey Khitrov, Founder & CEО Listing.Help said that in the short term, DeFi can really positively affect the capitalization of the cryptocurrency market, but do not flatter yourself:
“In such a rapid development of the decentralized finance market, there are possible dangers for the industry: projects do not pass audits of smart contracts, people are lost in a huge number of new tokens, and sometimes they do not understand how and what works,” he said.
Other experts’ opinions on the DeFi market can be viewed here.
All information, contained on our website, published in good faith and objectivity, and for informational purposes only. The reader bears the full responsibility for any actions, committed by him on the basis of information, obtained from our website.