9 Years After Media Covered Bitcoin Reaching $1 Billion Market Cap; Are economists still perplexed?

More than nine years ago, Bitcoin (BTC) reached a market capitalization of $1 billion, after its price at the time surpassed $95, leaving financial experts scratching their heads over the success of the market. digital flagship asset.

One such expert was Lawrence White, a history of banking and currency professor at George Mason University in Virginia who, according to the article by IEEE Spectrum Morgen E. Peck on April 2, 2013, stated that:

“It’s a mystery that bitcoin has a positive value because it wasn’t launched in the same way a new currency is generally accepted.”

Since then, Bitcoin has not shown any progressive, reaching since its all-time high of over $67,000 in November 2021. At that time, the market capitalization of the first cryptocurrency reached $1.27 billion although, in due to the cryptocurrency market selling off, it currently stands at $439 billion.

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Bitcoin’s all-time market capitalization chart. Source: CoinMarketCap

Still, if financial experts were baffled by Bitcoin’s success nine years ago, what would they say if they knew it would one day exceed $1 trillion in market value?

Bitcoin’s Unstoppable Advance Continues

As Bitcoin did in February 2021, Deutsche Bank research strategist Jim Reid said at the time that the asset “started to get so big that it’s probably creating its own demand as companies and institutions are starting to make inroads into an area they wouldn’t have touched a few months ago.

Additionally, he stated that:

“Ironically, it is turning into a believable asset class for many by rallying so much lately and also gaining growing institutional buy-in.”

At the same time, researchers at banking giant JPMorgan (NYSE: JPM) showed that Bitcoin’s rally was unsustainable and made little sense. Investment firm Citadel CEO Ken Griffin was also dismissive, saying:

“I don’t see the economic basis for cryptocurrencies. I understand how to think about exchange rates around the world. (…) I don’t know how to think about what is actually a digital token.

However, the race to $1 trillion was predicted by Bloomberg’s senior commodities expert, Mike McGlone, in his Tweeter on November 16, 2020, where he called it “the digital version of gold”.

What do the experts think today?

Interestingly, some pundits previously intrigued by Bitcoin’s success are now changing their tune, with JPMorgan declaring that Bitcoin and crypto are now the preferred “alternative asset class”, overtaking real estate.

Meanwhile, Ken Griffin’s Citadel Securities, one of the world’s largest market content, has partnered with Fidelity Investments and Charles Schwab Corp (NYSE:SCHW) to create a crypto offering that would broaden access of their customers to digital assets. .

McGlone remains bullish on Bitcoin, supporting his view that it will outperform in the second half of 2022, despite the first-half market decline spilling over into the second half, as Finbold reported in late July.

As it stands, Bitcoin is currently trading at $22,969, down 1.54% on the day, but up 9.84% over the previous seven days, according to data from CoinMarketCap.

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