Comparing the Market Capitalization of Crypto Assets with Total Shares and Global Total Assets | There is Room for Bitcoin Growth…
“The price of Bitcoin has surpassed 600,000 yen again!” The other day, I saw bright news on such cryptographic assets. The price of Bitcoin recovered to 600,000 yen in April 2019, and then it dropped slightly, but it seems to have surpassed 600,000 yen again.
In this way, crypto assets tend to be focused on “market value”. However, the market value of cryptographic assets with volatile prices is lacking in creditworthiness and cannot be used as a reference in judging the prospect of the stock.
Therefore, let’s focus on the “market capitalization” which is the product of the market price and the total number of distributions. Market capitalization plays an important role in considering the future of the stock. However, the market capitalization will also have a major impact on investment decisions only after comparative examination.
This time, we compared the market capitalization of cryptographic assets with the market capitalization of various financial markets. Perhaps the current cryptographic asset market is a promising opportunity to invest in now.
Compare market capitalization of cryptographic assets with financial markets
The market capitalization of cryptographic assets is approximately 20 trillion yen as of April 25, 2019. Market capitalization is the total value of market capitalization calculated from each stock, such as Bitcoin and Ethereum. The formula is as follows.
■ Current price (market price) × amount of money issued = market capitalization of each currency
■ Total market capitalization of each currency = market capitalization of the entire cryptographic asset market
If you ask for 20 trillion yen, you will feel as if a huge market is formed. However, in practice, the market size of cryptographic assets is not very large. Compare with the market capitalization of other financial markets.
(1 USD = converted to 110 Yen)
・ Total assets of the world: about 9,500 trillion yen
・ World equity market capitalization: about 7,200 trillion yen
・ Distributed money around the world: about 3,800 trillion yen
・ Market capitalization of gold: about 850 trillion yen
・ USD’s total value of distribution: about 180 trillion yen
・ Market capitalization of the whole cryptographic asset: about 20 trillion yen
・ Market capitalization of bitcoin: about 10 trillion yen
・ Market value of silver (silver): about 2 trillion yen
I tried to make the above data a little clearer and graph it.
(Unit: trillion yen, as of April 25, 2019)
The current market capitalization of crypto assets is actually less than the total circulation of the US dollar. When compared to stocks as the same investment product, crypto assets are only 1/360 of the market capitalization.
Cryptographic assets are emerging markets that are only 10 years old since Bitcoin was born. In January 2018, the price of Bitcoin exceeded 2 million yen and became a big topic in the market. However, cryptographic assets as seen across the financial markets are still tiny.
Also, conversely, cryptographic assets have enough room to grow in the future. Although there is no way to quickly catch up with the market capitalization of stocks, in the long run, the value of each security asset may still be “low”.
Compare stocks of cryptographic assets to the market capitalization of similar service companies
Then, how much difference in market capitalization exists between each stock of cryptographic assets and a famous stock listed on the stock market? So first let’s look at the market capitalization of major crypto asset stocks as of April 25, 2019.
Brand Price Market Price Current Price Issued Quantity
Bitcoin 10.7 trillion yen 611,000 yen 17.6 million sheets
Ethereum 1.9 trillion yen 18,423 yen 105.8 million copies
Ripple 1.4 trillion yen 33.65 yen 4.2 billion sheets
Bitcoin cash ¥ 556.0 billion ¥ 31,322 ¥ 17.7 million copies
Eos ¥ 50 billion ¥ 535 ¥ 94 billion
Light coin ¥ 502.0 billion ¥ 8,177 ¥ 61 million sheets
Binance Coin ¥ 370 billion ¥ 2,631 ¥ 140 million
Tether ¥ 318 Billion ¥ 112 Billion
Stella 225.4 billion yen 11.62 yen 19.4 billion copies
ADA coin ¥ 208 billion ¥ 8.03 ¥ 26 billion
Of these, let’s compare the following three currencies with specific stocks in the stock market:
Many of the top ranked cryptographic assets often offer their own services. For example, Bitcoin has its own mechanism of cryptographic asset settlement, and Ethereum is a distributed application. Therefore, we compared with companies with similar companies that provide similar roles and services in the stock market.
Bitcoin and VISA
Bitcoin is not a mere product for investment, but the original purpose is “payment currency”. Simply put, the most important thing is to be able to purchase goods and services using bitcoins instead of the current legal currency (such as yen or dollar).
The advantage of Bitcoin is that you can make a small payment and it costs almost no fee. In fact, it is possible to trade under yen (money), and regardless of how much the settlement amount is small, the fee will be equal to priceless.
On the other hand, credit cards are one of the representative payment services currently available. Credit cards incur a fee upon payment, which is generally borne by the business operator (the shop side) who introduced card payment. In addition, if you are going to repay small amounts at a time, such as revolving payment, the user side must also bear the fee this time.
The major credit card company is VISA. The current market capitalization of VISA is approximately 30 trillion yen. On the other hand, bitcoin is worth 10 trillion yen, so if you are promoting the same payment service, it is considered that there is still enough room for bitcoin to increase in value.
Ethereum and the Alphabet (Google)
Ethereum has its own mechanism of distributed application. Anyone using this platform can easily issue blockchain-equipped apps and tokens.
Ripple offers an international remittance service. By partnering with financial institutions all over the world and brokering the Ripple Currency (XRP), it will be possible to make overseas remittances faster and cheaper than before.
JPMorgan is also focusing on such international remittance services, and we are also positive about utilizing blockchains. With a market capitalization of approximately 40 trillion yen, it is one of the top financial institutions in the world.
The market capitalization of Ripple is 1.4 trillion yen. If Ripple is developing and an international remittance network is realized, it will be possible to send money more conveniently than it is now. For example, a fee of several thousand yen required for a single remittance, the number of days it takes a week or so can be solved using cryptographic assets and blockchains.
Given this future, it is no exaggeration to say that the value of the current ripple is undervalued.
It is generally recognized that the market capitalization of a financial instrument represents the strength of its brand or market. However, it is hard to tell if their abilities are either superior or inferior unless they are compared with anything else.
This time, we compared the market capitalization of cryptographic assets with multiple financial markets. The market capitalization of crypto assets has risen to about 20 trillion yen (up to 80 trillion yen) since the birth of Bitcoin, but it can be said that the financial market as a whole is still in a growth phase.
Of course, cryptographic assets do not necessarily show the same course as stock markets. However, now that block chain systems are being used by companies all over the world, it is no wonder that in the future, much attention will be paid to cryptographic assets. Perhaps the current cryptographic asset market is very attractive Iota from the perspective of us in the future.