Based

Bitcoin

Generation

Let's look at the facts! There has been massive media chatter today about the price of bitcoin breaking 9,10, and today 11k. The first question one should ask themselves is, is this price justified? Surely a pull back may be due in the near term. At these prices the market cap of Bitcoin is now around $183 Billion. This is a fraction of the market cap of gold, a fraction of the market cap of stocks and a very small fraction of the market cap of major currencies. So is Bitcoin truly a financial asset or is it more like my childhood baseball cards? First let's explore, is Bitcoin a currency? The fact that it can be used for purchases on Overstock, square pay and via wallet to wallet transfers for goods and services. It would seem that it is on its way to becoming the 1st major currency to compete with the US dollar, Swiss franc, Euro, Pound and the Yen. Based on the market cap of major currencies, if Bitcoin was to become a true major, it has a long way to go before hitting the wall. Bitcoin is approximately 30th in the largest currencies in the world. Now is Bitcoin the new Gold? Hard to say if Bitcoin has become the new age digital gold. If it is in fact, Bitcoin still has a way to go to reach the 7.8T market cap of gold that is stated by the world council. Are crypto currencies the Generation Y version of equities? Is Bitcoin the Generation Y version of stocks buy and hold? They refer to it as buy and HODL. Hold On For Dear Life! Bitcoin is nowhere near the total market cap of the s&amp;p 500, but to be more fair let's compare it to some tech stocks. Bitcoin is approx one fifth the size of Apple. So if Bitcoin as a technology is more revolutionary than Apple, maybe a trillion dollar market cap makes sense? Conclusion This may also have been driven by expectations of a parliamentary decree that contracts could be voided for a small cost—thus lowering the risk to buyers. If this is tulip mania 2.0 we have a long way to run for one Bitcoin to equal 10x the salary of a skilled technology engineer. Disclaimer This article is for informational purposes and does not constitute investment advice. Disclosure The author may hold Bitcoin. &nbsp;

Is Bitcoin tulip Mania for the digital age?

Crypto Daily™

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