On Friday, Bitcoin hit a market capitalization of $1 trillion as it rose to yet another record high. The record countered analyst warnings that it is an “economic side show” and a poor hedge against a fall in stock prices.
It is said to be the world’s most popular cryptocurrency and rose to a record $56,620, taking its weekly gain to 18%. It is believed to have surged more than 92% this year.
Its gains have been fuelled by signs of gaining acceptance among mainstream investors and companies, ranging from Tesla and Mastercard Inc. to BNY Mellon.
John Wu, the president of AVA Labs stated “If you really believe there’s a store of value in bitcoin, then there’s still a lot of upside”.
He further added “If you look at gold, it has a market cap of $9 or $10 trillion. Even if bitcoin gets to half of gold’s market cap, there’s still growth of 4X, or $200,000. So, I don’t know when it stops rising”.
Jacob Skaaning, portfolio manager at crypto hedge fund ARK36 stated that overtaking Alphabet Inc, currently valued at $1.431 trillion is said to be the next milestone.