The rise in bitcoin’s price on Friday pushed the cryptocurrency past Facebook’s market cap. Next, bitcoin stands for Tesla, Google, Amazon, Microsoft and then Apple.
Bitcoin outperforms Facebook in market cap
Bitcoin’s frequent surge past its all-time highs this week has made the cryptocurrency’s size larger than Mark Zuckerberg’s Facebook.
The price of bitcoin broke Another record high early Friday morning, reaching $ 41,970. At the moment of writing, BTC stands at $ 41,147; market cap is about $ 770 billion while Facebook’s market cap is about $ 752 billion. Gemini cryptocurrency exchange founder Cameron Winklevoss commented:
Bitcoin has surpassed Facebook in market cap. It makes sense that a money network would be more valuable than a social network.
The Winklevoss twins have been big holders of bitcoin since April 2013, when they bought $ 11 million BTC, an equivalent of a full 1% of all bitcoins at that time. This came less than a decade after the twins sued Zuckerberg in 2004, claiming that the founder of Facebook stole their idea for the social networking platform while they went to Harvard together. The twins won a $ 65 million settlement from that lawsuit and then founded the Gemini cryptocurrency exchange.
Bitcoin developer and educator Jimmy’s song wrote, “Bitcoin just confused Facebook. Do you still think Zuckerberg is the smart one and not Tyler or Cameron? “
Rather than embracing bitcoin, Facebook is helping develop the diem cryptocurrency formerly known as libra. The social media giant first proposed the Libra project in June 2019. It was after that redesigned and a new white paper was published by the Libra Association, now called the Diem Association. The new design expands the Libra network by including single currency stablecoins. In November, reports suggested the new cryptocurrency could launch early this year, pending regulatory approval.
The Facebook-backed cryptocurrency has caught the attention of many regulators around the world. They are concerned that since Facebook has about 2.7 billion users, the proposed “global stablecoin” will reach scale without an appropriate regulatory framework, which could undermine their monetary systems. Christine Lagarde, president of the European Central Bank (ECB), recently downplayed bitcoin as a risk to financial stability, but warned of the risks of global stablecoins, such as the daily cryptocurrency.
After Warren Buffett’s turn around Berkshire Hathaway last week, bitcoin surged in market cap above Jack Ma’s Alibaba Group Holding, Taiwan Semiconductor Manufacturing (TSMC), Tencent and now Facebook.
The next company to turn around is Elon Musk’s Tesla, which itself caught up with Facebook on Thursday. Bitcoin even briefly surpassed Tesla’s market cap on the same day before Tesla’s stock price jumped in response to a prominent analyst who lifted a bear call on the stock. The rise in Tesla’s stock price also helped CEO Elon Musk become the world’s richest man, overtaking Amazon CEO Jeff Bezos.
After Tesla, bitcoin will overtake Google, Amazon, Microsoft and then Apple. In terms of asset classes, bitcoin is almost overtaking silver, but has a long way to go before it catches up with gold. Abra CEO Bill Barhydt opined:
Bitcoin’s market cap is just beyond Facebook. Chances are, it will pass Apple this year and become more valuable than any company in the world.
What do you think if bitcoin catches up with Facebook’s market cap? Let us know in the comments below.
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