Jun 16, · At the start of the cryptocurrency boom in , Bitcoin’s market value accounted for close to 87% of the total cryptocurrency market. Ethereum Basics. We calculate Bitcoin dominance by dividing the total cryptocurrency market cap with the market cap of Bitcoin. For example – if the total cryptocurrency market cap is $ billion and the market cap of Bitcoin is $55 billion, BTC dominance would be 55%. How is total cryptocurrency volume calculated? Even after Bitcoin has lost its undisputed dominance, it remains the largest cryptocurrency, with a market capitalization that fluctuated between $$ billion in , owing in large part to the ubiquitousness of platforms that provide use-cases for BTC: wallets, exchanges, payment services, online games and more.
Bitcoin market value totalHow Much of All Money Is in Bitcoin?
This is to say that bitcoin buyers believe the utility of paper money has come and gone. This could prove somewhat accurate with the pandemic highlighting the potential for physical cash to be a carrier of harmful germs. With the rise of peer-to-peer payment platforms, bitcoin looks to become the superior digital currency.
Bitcoin also benefits from its first-mover advantage in the cryptocurrency space. It was the first digital token to catch on with investors, and happens to be the largest on a market-cap basis by a significant amount it's five times the size of Ethereum, the second-largest cryptocurrency by market cap.
Today, bitcoin serves as the intermediary asset on a number of crypto investment platforms if you want to purchase a less-common token i.
But as good as bitcoin has been for investors in , my blunt opinion is that it's a terrible investment. Here are 10 reasons you should avoid bitcoin like the plague. First of all, bitcoin is only as scarce as its programming dictates. Whereas physical metals, such as gold, are limited to what can be mined from the earth, bitcoin's token count is limited by computer programming.
It's not out of the question that programmers, with overwhelming community support, could choose to increase bitcoin's token limit at some point in the future. Thus, bitcoin offers the perception of scarcity without actually being scarce.
The king of cryptocurrencies also has a utility problem. To date, only Even considering the fact that fractional token ownership exists, roughly 10 million to 11 million tokens in circulation aren't going to go very far.
There's minimal utility here. Bitcoin may enjoy first-mover advantage at the moment, but the barrier to entry in the cryptocurrency space is especially low. All it takes is time and coding knowledge for blockchain -- the digital and decentralized ledger that records transactions -- to be developed and a digital token to be tethered to the network.
There's nothing unique about bitcoin's underlying blockchain that other businesses couldn't one-up. Another beef with bitcoin is that there's no tangible way to value it as an asset. For instance, if you want to buy shares of a publicly traded company, you can scour income statements, its balance sheet, read about industrywide catalysts, and listen to management commentary from recent conference calls and presentations. In other words, you can make an informed decision. With bitcoin, there is no tangible data for investors to wrap their hands around.
There's transaction settlement times and total circulating token supply, but neither of these figures tells us anything about the value or utility of bitcoin. Your Practice. Popular Courses.
Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs.
Other Cryptocurrencies. Bitcoin Value and Price. Cryptocurrency Bitcoin. Key Takeaways A bitcoin was worth 8, Bitcoin accounted for just 0.
Bitcoin was worth only about 1. All cryptocurrencies combined accounted for less than 0. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
It is estimated that of the 21 million total coins, 18 million have been mined already. Bitcoin acting as an inflation hedge has been picking up steam as the US Fed's balance sheet has expanded by trillions of dollars in just a matter of weeks to fund stimulus programs aimed at mitigating the economic damage caused by the coronavirus pandemic.
As outlined in the chart below, technically, bitcoin is pushing up against a key resistance level. Read more: Nancy Davis has a pristine track record of calling recent market meltdowns. She outlines a new bubble she sees building in the bond market - and offers 3 strategies for taking advantage. Matthew Fox. The three major reasons for the move include anticipation of the next bitcoin halving, institutional investors adding exposure, and the perception that bitcoin would protect against a surge in inflation.
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