Cryptocurrencies are having a record-breaking year, with the global market cap surpassing $2 trillion for the first time. The blockchain security company NGRAVE put this milestone in a wider context and explored how big the crypto market is relative to other more traditional asset classes. To assess the significance of the industry’s total market cap, the crypto security provider compared it to the value of other global industries.
Currently, gold has a market cap of $11.4 trillion, making it around five times the size of the crypto market and 13 times the size of Bitcoin, also referred to as digital gold.
In 2021, $10 billion has been pulled from gold funds as BTC posted new ATHs amid rampant money-printing, noted NGRAVE, pointing to competition between the two, as Bitcoin grew to represent a sound ‘safe-haven’ asset. However, when compared to the size of the global silver market, which stands at $1.28 trillion–the crypto market cap is almost double the size.
The world’s real estate market is almost four times larger than global GDP, currently sitting at over $340 trillion, or more than 160 times the size of crypto’s market cap. Crypto is entering the real estate market, with blockchain startups building decentralized applications that will streamline the buying and selling of property. While the crypto market is still small, it is growing steadily and has a lot of potential. The real estate market, on the other hand, is still very large, but the growth in crypto is expected to make it a much bigger market than the real estate market.
World’s GDP is almost 85 trillions of US dollars, USA has the highest GDP more than 20 trillions followed by China with almost 15 trillion dollars economy.
Bitcoin is the most popular cryptocurrency, It has a market cap of $788 billion, roughly the same size as the Switzerland’s economy. Ethereum is the second most popular cryptocurrency. It has a market cap of $372 billion, about the size of Denmark’s economy.
The Equities market is about $122 trillion. While the crypto market is still small, it is growing steadily and has a lot of potential. Crypto market cap is more comparable to the EU equities market which sits at $14 trillion, or even the US equity market, which is valued at more than $50 trillion. Surprisingly, despite all these valuations, it is still considered a niche investment and is not widely known by the mainstream population.
Let’s see the value of the crypto market versus national debt, The crypto market standing at $2.12 it is close to the UK government debt, which stands at £2.1 trillion ($2.97trn). Global debt levels, incidentally, are at a record high of $226 trillion amid snowballing government, household and bank borrowing. The global monetary base is almost 5 times more of what it was in 2008.
The global cryptocurrency market cap is not far from the U.S. budget deficit for 2021 ($2.77 trillion) and $410 billions dollars higher than the U.S. student debt which is $1.7tn.
Not only is the global crypto market close in valuation to the world’s biggest tech giants, but its most successful asset bitcoin reached a $1 trillion market cap in 2021 much faster than those entities. In fact, it took 12 years time as comparing to Amazon which took 24 years to reach the milestone.
While on the subject of trillion-dollar stocks, bitcoin’s market cap means that it would go straight into the top 10. The second biggest cryptocurrency Ethereum, meanwhile, has a larger market cap than Samsung, LVMH, Walmart and Procter & Gamble.
Apple is the world’s most valuable publicly-traded company with a market cap of $2.98 trillion. Microsoft is close with $2.51tn and Alphabet(Google) is in the third spot with a market cap of $2tn closest to Crypto market value which stands at $2.1tn (at the time of writting).
It should be noted that the $2.1 trillion figure doesn’t refer to the crypto industry as a whole; merely the total value of all cryptocurrencies currently in circulation. The industry, however, features many companies that are not directly concerned with the issuance of tokens; hardware wallets, marketing and media agencies, mining companies, blockchain startups, payment networks, crypto-focused venture capital funds, etc.
Financial service industry is on top spot with market value $22.5 trillion, automobile manufacturing $3tn, oil and gas exploration and production $4.6tn, and food $5tn.
NOTE You can read the original report here: https://medium.com/ngrave/too-big-to-fail-crypto-market-size-vs-traditional-assets-eff4bb2ec529
