Bitcoin is more valuable than all banks

As of December 2023, the picture regarding the performance of assets that lost or gained value for many reasons, especially macroeconomic developments in 2023, began to become apparent. Comparisons between digital assets, which change rapidly and remain in the headlines throughout the year, shed light on the annual performance of Bitcoin and Ethereum. In the list published by Companiesmarketcap and containing the largest assets by market value, Bitcoin was ranked 12th. Bitcoin; It surpassed companies such as Eli Lilly, Visa and TSMC with its market value.

Sharing his evaluations on the subject, Gate.io Global Growth Director Kafkas Sönmez said, “Since Bitcoin is a digital asset and investment tool, comparing it with a company only in terms of market value should not give results that will directly affect investment preferences. “Still, the market values of Bitcoin and Ethereum hold clues about the economic impact of these two digital assets,” he said.

Bitcoin’s market value surpasses all banks

In Companiesmarketcap’s list comparing global banks with cryptocurrencies in terms of market value, it was seen that Bitcoin surpassed world-famous banks such as JPMorgan Chase, Bank of America, ICBC, Wells Fargo with a value of close to 760 billion dollars. Ethereum ranked third on the list, falling behind only JPMorgan.

Noting that the market value comparison shows that Bitcoin is more valuable than all banks in the world, Kafkas Sönmez said, “When we take into account non-bank global companies and assets, we see that Bitcoin is ahead of public companies such as NVIDIA and Tesla. If Bitcoin were a company, it would be the 11th most valuable company in the world. However, there are also comments that suggest that this view is now a thing of the past. One of Deutsche Bank’s current analyzes says that an increase in value has been observed in Bitcoin as a result of rising inflation as of 2021, and this is equivalent to the increase in the valuations of technology companies. “The analysis underlines that both technology stocks and digital assets are experiencing a correction as interest rates begin to rise,” he said.

Bitcoin outperformed gold by 93% this year

Stating that the value losses or gains experienced by Bitcoin and Ethereum in 2023 are shallower compared to previous years, which indicates that large-scale fluctuations in the crypto markets have decreased, Gate.io Global Growth Director Kafkas Sönmez said, “In 2019, Bitcoin’s average value is 90%. Its daily volatility was measured at 67%. In 2023, this figure dropped to 40%. This supports the resistance of the two crypto assets against inflation and gives legitimacy to the term ‘digital gold’, especially attributed to Bitcoin. So much so that Bitcoin appears to have outperformed gold by 93% and Ethereum by 39% since the beginning of the year. “Considering the short history of Bitcoin, it can be said that the digital asset with the largest market value has left its volatility cycle behind in a very short time.”

“We encourage responsible investment”

Reminding that the last month of the year is a period for many investors to review their portfolio, reweight assets and make new investment decisions, Kafkas Sönmez said, “With more than 1,700 cryptocurrencies listed on Gate.io and various tools and products that appeal to different investor profiles, We are expanding the opportunities for our users who want to make a fresh start in 2024. We regularly inform our millions of users by following the performances of leading digital assets, especially Bitcoin, and new developments in the crypto ecosystem. “All of these coincide with Gate.io Turkey’s responsible investment approach, which encourages evaluating all variables and considering risks when making investment decisions.”