Is Crypto Really Worth $3 Trillion? I Ran the Numbers.
The potential of digital currencies is far greater than any one company today, but the risk is far higher.
The total value of all cryptocurrency assets has just exceeded $3 trillion, according to Bloomberg News. It’s such a big number that it needs some context to be meaningful. Consider Microsoft Corp. and Apple Inc., which have market capitalizations that recently topped $2.5 trillion. So, the entire crypto sector is around 20% more valuable than the equity of the two biggest tech companies.
The previous crypto bull run peaked at the end of 2017 at about $800 billion, also about 20% higher than Microsoft and Apple at the time. Over the following year, crypto crashed almost 90%, while Microsoft, Apple and the Nasdaq 100 Index didn’t change much. By December 2018, crypto was worth only a bit more than 10% of the largest tech companies. But over the next three years, crypto recouped the lost ground and is back at its peak valuation compared to tech companies.