Bitcoin’s market cap is currently sitting at $195 billion dollars, surpassing the market of cap of General Electric, once the largest company in the world, by $65 billion.
At $160 billion, Bitcoin's market cap just passed GE's.
— Charlie Bilello (@charliebilello) November 27, 2017
GE currently has a $130 billion annual revenue and about 300,000 employees globally. In July of 2016, GE was evaluated at just above $300 billion, nearing the market cap of other major banks such as JPMorgan. However, since 2015, GE has been struggling and saw its market cap almost halved.
However, since 2015, Bitcoin saw its market increasing 76 times, from $2.5 billion to $190 billion today.
Is the comparison fair?
Some argue that comparing the market cap of Bitcoin with some companies is not fair, as Bitcoin represents a store of value and a digital currency and should rather be compared to other assets, stores of value and currencies such as gold and reserve currencies. However, this does not take anything away from the huge growth rate that Bitcoin has seen compared to other companies in leading industries.
Additionally, Bitcoin has surpassed leading currencies on the M1 index as well this year. The M1 index is a way of measuring the money supply of a particular country; this includes physical money — both paper and coin — as well as checking accounts, demand deposits and negotiable order of withdrawal (NOW) accounts. This week, Bitcoin surpassed the total money supply of the British pounds (£).
Many experts, including billionaire hedge fund legend Mike Novogratz, believe that the Bitcoin price could easily reach $40,000 by the end of 2018. He said:
“Bitcoin could be at $40,000 at the end of 2018. It easily could. There’s a big wave of money coming, not just here but all around the world. What’s different about these coins than other commodities … there is no supply response here. So it’s a speculator’s dream in that as buying happens there’s no new supply response that comes up. So every price move gets exaggerated. It’s going to get exaggerated on the way up. There will be 50 percent corrections. It will get exaggerated on the way down.”
Once Bitcoin reaches a $1 trillion dollar market cap, analysts believe that Bitcoin can be reasonably compared with conventional safe haven assets such as gold. Currently, the whole Bitcoin market is about 3% of the whole gold market.