The value of bitcoin (BTC) has skyrocketed by over 38% against the U.S. dollar in the last six months, with a remarkable 125% increase year-to-date. Currently at its highest point in 18 months, bitcoin's market capitalization has reached the eleventh spot among global assets. This ranking includes various assets such as precious metals, exchange-traded funds (ETFs), and corporate valuations.
Bitcoin's Market Cap Reaches 11th Position Worldwide
Bitcoin has experienced significant growth throughout 2023, with a 6.5% price increase in just the past week. Presently, BTC boasts a market valuation of approximately $726.95 billion, with trading prices hovering just above the $37,000 mark.
As the leading cryptocurrency in terms of market capitalization, BTC commands a 49% share of the $1.4 trillion crypto economy. As of Friday, November 10, BTC holds the eleventh position among the largest global assets by market valuation.
The digital currency currently ranks above Tesla, which has a market cap of $667.50 billion, but falls short of Berkshire Hathaway's valuation of $757.56 billion. An additional $31 billion added to BTC's market cap would push it past Berkshire Hathaway's valuation.
BTC's market cap also surpasses assets like Visa, TSMC, Walmart, and JPMorgan Chase. The nine assets above both Berkshire and BTC include Meta, Nvidia, Silver, Amazon, Google, Saudi Aramco, Microsoft, Apple, and Gold.
Gold's market cap of $12.876 trillion is approximately 17.72 times larger than bitcoin's market cap. Apple's market cap of $2.836 trillion is approximately 3.9 times larger than bitcoin's valuation.
To match gold's market cap of $12.876 trillion, a single bitcoin (BTC) would need to be priced at approximately $659,016 per coin. This would represent a percentage gain of about 1,681.13% from its current price of just above $37,000.
In order to reach Apple's market cap of $2.836 trillion and claim the second position, a single bitcoin would have to be valued at approximately $145,151. This would result in a percentage gain of about 292.30% from the current price of $37,000.
With a market cap of $250 billion, ethereum (ETH), the second-largest crypto asset by valuation, ranks 38th among global assets. Ether's market cap is slightly higher than Costco's and slightly lower than Toyota's market valuation on Friday.
What are your thoughts on bitcoin (BTC) becoming the 11th most valuable asset worldwide? Share your opinions in the comments section below.
Frequently Asked Questions
What is the best way to hold physical gold?
Gold is money and not just paper currency. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. Even if your stock portfolio is down, your shares are still yours. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, gold offers liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to profit from short-term fluctuations on the gold market.
How is gold taxed in an IRA?
The fair value of gold sold to determines the price at which tax is due. You don't have tax to pay when you buy or sell gold. It is not income. If you decide to sell it later, there will be a taxable gain if its price rises.
Loans can be secured with gold. Lenders seek to get the best return when you borrow against your assets. In the case of gold, this usually means selling it. The lender might not do this. They may hold on to it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It is better to leave it alone.
What is the value of a gold IRA
There are many advantages to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. If you are planning to retire early, this makes it easy to transition.
The best part is that you don't need special skills to invest in gold IRAs. These IRAs are available at all banks and brokerage houses. You don't have to worry about penalties or fees when withdrawing money.
But there are downsides. Gold has always been volatile. Understanding why you invest in gold is crucial. Are you looking for growth or safety? Are you looking for growth or insurance? Only by knowing the answer, you will be able to make an informed choice.
You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce won't be enough to meet all your needs. You may need several ounces, depending on what you intend to do with your precious gold.
A small amount is sufficient if you plan to sell your gold. You can even manage with one ounce. You won't be capable of buying anything else with these funds.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
bbb.org
investopedia.com
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
3 Ways to Invest in Gold for Retirement
It's important to understand how gold fits in with your retirement plan. There are several options to invest in precious metals if your employer has a 401k. It is also possible to invest in gold from outside of your work environment. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the rules for gold investing:
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, cash in your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. The reason is that it's much easier to sell physical gold coins than certificates. Physical gold coins are also free from storage fees.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. In other words, spread your wealth around by investing in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
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By: Jamie Redman
Title: Bitcoin Surges to Become the 11th Largest Global Asset, Approaches Berkshire Hathaway's Valuation
Sourced From: news.bitcoin.com/bitcoin-soars-to-become-11th-largest-global-asset-nearing-berkshire-hathaways-valuation/
Published Date: Fri, 10 Nov 2023 15:30:19 +0000
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