Tesla’s shares soared on July 2, 2020 after it announced 90,650 vehicles were delivered in the second quarter, beating Wall Street expectations. Unlike its rivals, Elon Musk appears unaffected by current economic conditions.
And while most news centered on Tesla being the most profitable auto-maker and surpassing Toyota, yet another distinction is worth making.
On July 2nd Tesla’s stock closed at $1,208.66 with a whopping $224.1B total market capitalization. Bitcoin, trading at $9,136.15, is currently at $168.3B’s market cap, down from $334B’s all-time high.
However, there are many publicly traded firms whose sizes surpass Bitcoin’s and the entire crypto industry, including Microsoft, Apple, Google, Amazon, Facebook and Berkshire Hathaway.
Globally, policymakers keep an eye on Bitcoin, which has acted as a buffer against unstable currencies. In Venezuela, Lebanon and Zimbabwe, Bitcoin has gained particular prominence, all of which have experienced hyperinflation. The Russian government has also shown interest in Bitcoin, reportedly investing in northern Bitcoin-mining facilities while prohibiting ordinary users from using.
Bitcoin’s proponents say it will replace next-generation currency. And maybe that’s true. But with the Federal Reserve so far issuing more than $4 trillion in stimulus, and most recently initiating a $750 billion corporate bond buying program, Bitcoin appears to the American government as small potatoes. Therefore, despite its current patterns of expenditure, the Federal Reserve might easily purchase all available Bitcoin supply and eradicate all USD competition as the world reserve currency.
Bitcoin has two possible futures. The first is a small group of wealthy individuals (or governments) that accumulate and decrease the significance of most of this digital asset. That is far-fetched, but plausible, considering that some of the world’s richest men, including Jeff Bezos, have more money than Bitcoin’s market cap.
The second is that governments are going on a bitcoin buying spree, using it as a commodity type to back up their currency, similar to the gold standard. It is estimated that 45 percent of the world’s total supply of gold is actually kept in government vaults, with routine annual purchases. A similar Bitcoin treatment would push up Bitcoin’s price to unprecedented levels, creating a new “Bitcoin Standard.”
Reported by Forbes.
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