Will Bitcoin Soon Surpass Gold’s Market Cap?

Bitcoin, the world's first cryptocurrency, has attracted tremendous attention in recent years.

Often referred to as "digital gold," it has attracted many investors who see it as a way to diversify their wealth and secure their financial future. But the question remains: will Bitcoin ever outperform Gold's market cap?

First, it's important to understand what market cap is. It is the total of all shares in a company that are traded on the stock market multiplied by the current share price. Gold market capitalization is calculated by multiplying the total amount of gold in circulation by the current price of gold.

In 2021, Bitcoin's market cap was around $1 trillion, while gold's market cap was around $11 trillion. That means bitcoin still has a long way to go to catch up with gold. But experts believe that Bitcoin has huge growth potential in the future.

One factor that could contribute to Bitcoin's growth is the increasing adoption of cryptocurrencies by governments, businesses, and consumers. In recent years, some governments have already taken steps to regulate and integrate cryptocurrencies, and these efforts are expected to increase further in the future. Some businesses have also started accepting cryptocurrencies as a form of payment, which could help their acceptance even more broadly.

Another factor that could contribute to Bitcoin's growth is its limited supply. There are only 21 million total bitcoins that will ever circulate, meaning their supply will eventually be exhausted. This can lead to higher demand and thus an increase in price.

Bitcoin critics like Peter Schiff in particular argue against a further increase in the price of Bitcoin. It is often argued that Bitcoin is still a very young and untested concept compared to gold. It has yet to prove itself to be a stable and reliable investment option, and it remains unclear how it will fare in economic downturns or other challenges.