Bitcoin Set To Be A $1 Trillion Asset

Bitcoin is now really close to having a market value of $1 trillion in an upward charge that has made cryptocurrency returns far outperform traditional assets like stocks and gold.

The world’s largest cryptocurrency has added more than $415 billion of value in 2021 to about $966 billion according to data from companiesmarketcap.com, making it the 8th most valuable asset in the world today by market cap.

Bitcoin recently reached a new all-time high of $52,621 and it does not look like the token's rally is ready to slow down just yet. 

Bitcoin's highly volatile rally has been fueled largely by speculators, corporate treasurers, and institutional investors this year. This has flamed up an argument between the crypto faithful and skeptics: with the former claiming that the rally has been a result of the asset gaining wider acceptance as a safe-haven asset, and the latter countering that it is simply an unhealthy obsession that is riding on the waves of fiscal stimulus.

READ MORE: Mixed Reactions As Ethereum Speeds Up To New Record High

"FOMO -- fear of missing out -- may be at play", said Shane Oliver, head of investment strategy with AMP Capital Investors Ltd. in Sydney, adding that “in times of easy money this gets magnified and it’s partly what’s driving the current interest.”

"If Bitcoin falls out of favor -- for example due to government regulation or investors just moving on to the next new thing -- then it could quickly plunge.” Said Oliver.