Though market-cap comparisons – between cryptocurrencies and public equities – do not provide an adequate analysis worth more than a tongue-in-cheek comparison, they do help to contrast the depth of the crypto nadir being realized today.
As of this writing, the market capitalization of the entirety of the cryptocurrency world stands at $120,642,335,182. A look at American companies and the wallets of big investors shows just how many of these outweigh the financial might of the over 2500 traded coins.
Netflix, the international brand known the world over for its online movie-streaming platform, is worth more of the same like the combined value of all cryptocurrencies - around $120 Billion.
Famed investor Warren Buffett - ranked #3 in Forbes rich list with $86 Billion - has the buying power to purchase the totality of all cryptocurrencies and still come home with change. Steve Jobs’ widow, Lauren - with estimated net worth of $18 Billion - can buy the entirety of XRP if she so chooses.
Not to mention, Apple that reached this year to $1 Trillion market cap and has more cash on hand then crypto markets. Apple, with its $243 Billion cash hoard can buy all crypto in the world - twice!
Though Bitcoin still reigns supreme as the largest coin in circulation, a surprise to many investors came when XRP became the second most valuable coin. Their values are $65,420,576,779 and $14,073,827,536, respectively.
The cryptocurrency markets are trading on emotion and technicals in place of fundamentals and multiples; a perfect recipe for increased volatility and large price moves.
In a market that rests on deep-pocketed traders and reactionary moves by smaller investors, large percentage jumps are the norm. What might take the U.S. equity market years to move in market cap value, the cryptocurrency arena can do overnight.
Don’t count the bull out just yet.