When compared with some of the world’s biggest tech startups, bitcoin is one of the fastest-growing industries the world has ever seen. The currency reached a $1 trillion valuation in half the time it took leading tech companies such as Amazon, Google and Microsoft.
Bitcoin Has Reached $1 Trillion in 12 Years
According to Crypto Parrott – a trading simulator in Ireland’s capital city of Dublin – Amazon took a whopping 24 years to reach a $1 trillion valuation. Microsoft took as many as 44 years, while Apple required 42. Google was quicker than all of them, requiring only 21 years to achieve this milestone. However, this all pales in comparison with bitcoin, which only needed a lofty 12 years to hit this incredible mark.
In a new report, Crypto Parrott explained:
The number one ranked digital asset attained the valuation despite suffering several short-time sell offs but has managed to trade consistently above $50,000 while experiencing low volatility. Simultaneously, the milestone comes despite the frequent prediction of the asset experiencing a correction anytime soon. However, bitcoin has soared to trade above $63,000 on April 13, 2021, a new all-time high.
However, Crypto Parrott has warned diehard crypto fans that bitcoin’s $1 trillion valuation is a little different than those of the tech firms mentioned above, and that investors need to do a little more digging before they just assume that it is superior in some way. The report goes on to mention:
Worth noting is that bitcoin’s $1 trillion market value differs from the traditional assets. The traditional players offer tangible products whose demand contributes to the rally. At the same time, the bitcoin market cap surge is mainly driven by speculation, but institutional investors are changing the tide.
Over the past eight months, more institutional firms have become involved in the digital asset space, with the likes of MicroStrategy and Tesla serving as the biggest investors to date. Thus far, these companies have invested more than $2.2 billion and $1.5 billion in bitcoin, respectively. However, we have also seen firms such as Square investing hundreds of millions in the asset. All these maneuvers have likely led to bitcoin’s heavy price increases in late 2020 and early 2021.
The Crypto Space Is Unlike Any Other Industry
Furthermore, we are beginning to see new additions to the bitcoin space such as Canada’s recent BTC and Ethereum-based ETFs and Coinbase’s stock listing on the Nasdaq. These are also potentially helping bitcoin to maintain its trillion-dollar position.
Celebrities are also throwing themselves into the cryptocurrency mix. Tom Brady, for example, has made a real name for himself in the world of professional football, though now he is looking to establish success with non-fungible tokens (NFTs), and has allied himself with one of the world’s leading digital agencies to produce top-ranking blockchain products for collectors to enjoy.