Many people express a fear in the cryptocurrency forums that we are in a Bitcoin bubble, with prices growing too fast due only to speculation. But I guess no one told this to Asian traders, as the BTC/USD exchange rate just went over $2877 for the first time, rising another 10% day-over-day mainly due to high trading volumes in Korea, Japan and China.
To put this meteoric rise in some perspective, only at the start of March 2017 we reported that the price of Bitcoin surpassed that of an ounce of gold for the first time. Now, with gold trading at just $1,287, Bitcoin is much more than double the value of the precious metal used as currency since the beginning of history.
In terms of overall market cap, the Bitcoin blockchain is now valued at $46 billion, or about 70% of the current equity market cap of Paypal (NASDAQ: PYPL) at $65 billion.
$100 Billion Market
What is even more remarkable than another price record for Bitcoin is that the value of the entire blockchain asset ecosystem is now $100 billion, well over that of Paypal, with BTC dominance falling to just 46%.
This figure includes every cryptocurrency and token in circulation – and there a lot of those thanks to the recent rush of ICOs (initial coin offerings) drawing in more and more millions from investors in record time. The total market cap is more than double the value it was just a month ago.
Trading volumes supporting the recent move are very high across the board, reaching about $4 billion daily. BTC/USD trading over the past twenty-four hours consisted ‘just’ $1.8 billion out of the total.
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