Cryptocurrency Capitalisation Increases Like Its Investment Risk
The total cryptocurrency market capitalisation slowly keeps up with Apple, but the e-currencies lack long-term investors' trust.
The total cryptocurrency market capitalization reached $ 2.1 trillion for the first time, according to Coin Telegraph. For comparison: the capitalization of Apple, which ranks second in the list of the most expensive companies in the world, is $ 2.6 trillion, after Saudi Arabia's oil giant, Aramco.
It took the cryptocurrency market three months to set a new record. In early January, its capitalization exceeded $ 1 trillion for the first time. Then the price of bitcoin was $ 33,000, the last week it does not fall below $ 57,000. The Ethereum cryptocurrency is also growing steadily - in early April its value exceeded $ 2,000, while six months ago the Ethereum rate did not reach even $ 600.
The growth in capitalization was due to financial institutions, including PayPal and Visa, which actively support the cryptocurrency. For example, at the end of March, as a pilot project, PayPal allowed American customers to pay with cryptocurrency at online stores around the world. There have been rumors that Visa is planning to issue a bank card with cashback in bitcoins in 2021.
In late March, Tesla began selling electric vehicles in the US for bitcoin. A month earlier, the company bought $ 1.5 billion worth of bitcoins and said it would begin accepting them as payment. For Bitcoin, these messages turned into a record (at that time) rise in price to $ 44,000, which allowed Tesla to earn more than $ 1 billion.
Investment still extremely risky
Despite all the success, the majority of serious analysts consider the investment risk as from considerably high to extremely high due to the lack of capitalisation transparency and the price volatility. Most importantly, no financial institution decided to offer investment insurance.