Bitcoin is experiencing incredible growth, and as the bullish trend continues, the cryptocurrency's market cap is getting closer to that of Bank of America, the second-largest bank in the United States.
Today, Bitcoin is being adopted as one of the preferred digital assets for investment. The continued interest of investors in this cryptocurrency is leading Bitcoin to experience sustained growth, which to date, brings it closer and closer to the current capitalization of Bank of America.
At the time of this publication, Bitcoin has a value of $11.650 USD and a market cap of over 215 one billion dollars, which dominates around 62% of the total cryptocurrency capitalization, while Bank of America shows a market capitalization of 226 billion. Although the difference between the two is just over 10 billion dollars, a figure that is not insignificant, and as the upward trend continues and cryptocurrency prices continue to rise, Bitcoin's capitalization will increasingly approach the Bank's valuation, and may even surpass it.
Although the Bitcoin price still remains far from its all-time high of $20.000 USD reached in 2017, the cryptocurrency has demonstrated substantial growth so far in 2020, despite the volatility and large price swings seen during parts of the second and third quarters of the year.
It may interest you: Bitcoin maintains bullish trend as investors store their BTC offline
Bitcoin and the favor of investors
After Bitcoin broke the resistance of $10.500 USD, investors around the world began to turn their eyes again towards the cryptocurrency, whose value had remained stagnant for months between $8.500 and $9.200 USD, after recovering from the brutal fall of Black Thursday caused by the pandemic, where it fell close to $3.900 USD. Now, with the recent rise, which began in July and has led Bitcoin to grow by approximately 20%, the cryptocurrency shows signs of strength that is attracting many investors to invest in the cryptocurrency.
The Next Web, a European information portal, points out that daily transactions in Bitcoin grew by 10% compared to the average daily transactions made during the past year, and a growth of 21% compared to the minimum daily transactions of the previous year. The portal also points out that currently an average of 353 thousand transactions take place per day, in addition to the fact that there are more than 18 thousand Bitcoin addresses that store more than 1 million dollars in the cryptocurrency.
Meanwhile, one report de Chainalysis shows that around 15% of the annual investment activity reflected in Bitcoin comes from the United States. According to the renowned analysis firm blockchain, the United States and Asia are the regions where a professional and extremely active cryptocurrency market is maintained. Likewise, the exchanges and exchanges around the world are reflecting incredible figures that demonstrate the high transaction volumes that occur within these platforms. The awakening in the volatility of Bitcoin and the growing economic tensions between countries such as China and the United States, is driving the price of Bitcoin and stimulating new waves of interest from thousands of investors.
On the way to becoming a valuable reserve currency
Many have predicted that Bitcoin is close to reaching its maximum again and even surpassing it exponentially, and many other experts, even more daring, are betting that the cryptocurrency will even reach a million dollars.
While Bitcoin's appreciation depends on many factors, it cannot be denied that the cryptocurrency has incredible features and potential, which will undoubtedly help it reach a new high. However, Bitcoin's path also points to becoming the world's preferred reserve currency, according to the opinion of several experts, such as Erik Voorhees, CEO of ShapeShift.
Voorhees sees Bitcoin becoming a de facto reserve currency and replacing fiat money, while large banking corporations and financial firms will further embrace new technologies in developing their own currencies; something we are already seeing with the growing interest of banks in cryptocurrencies. CBDC.
Continue reading: The Bank of Spain presents a report with arguments for the debate on a possible CBDC
