The capitalization of Bitcoin is positioned as the second of the world banking

In recent days, the capitalization of bitcoin has increased in an unmatched way, its valuation fluctuates between USD 18,500 and there is no doubt that it could very soon reach the USD 20K mark. In fact, its current capitalization positions it 3.6% above its 2017 maximum capitalization.

As a result of this increase in its value, it has reached a market capitalization of almost 340,000 million dollars, with which, it is placed in the 16th position of the most valued companies in the world, as indicated by Criptonoticias. In this line, Bitcoin would have more value than Bank or America, PayPal and the pharmaceutical giant Pfizer.

As can be seen in the table below, in the last two years its appreciation has increased in a moderately sustained way.

Source: Crypto news.

How could it be otherwise, having reached such figures, Bitcoin has managed to position itself as the second largest bank in the world by its market capitalization. Being this of 340,000 million dollars, it is only below the capitalization of the JP Morgan Chase bank that has 433,000 million dollars, he said. Crypto newss. But, it has already far exceeded Bank of America's $ 306,700 billion market capitalization.

Market capitalization? Refers to the price per share multiplied by the number of shares outstanding. In the case of bitcoin, as it is a digital currency, the total value of its network is equivalent to its market capitalization In this sense, given the increase in value of each bitcoin, it is evident how this influences its market capitalization.

The difference in the case of Bitcoin is that, according to its operating scheme, each user has full control of their assets, while, in the case of traditional banking, it is the bank that guards and mobilizes the assets of Your clients.

Finally, according to Gabor Gurbacs, digital asset strategist, to know how big a bank is, not only is market capitalization enough (a category in which Bitcoin has an advantage), but it is also important to analyze the amount of assets they mobilize and guard these entities. In this category, Bitcoin does not stand very well, since the total value of the assets it mobilizes is equal to its market capitalization, while in the case of traditional banking, although its market capitalization is x, this number does not It is related to the large amount of assets that they mobilize owned by their clients, that is, they have much more money in their vaults and in circulation than their market capitalization, which, again, is not the case of bitcoin.

Under this last criterion to analyze the size of the banks, JP Morgan is not the largest bank in the world, but the Industrial and Commercial Bank of China, which manages around 4 trillion dollars in assets of its clients.

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Marilú Lazo
Lawyer from the Pontificia Universidad Católica del Perú (PUCP). Director of The Crypto Legal Blog, she has experience in corporate advice, consumer protection, as well as in matters of personal data protection and new technologies.


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