The price of Bitcoin, the largest cryptocurrency by market capitalization, briefly touched $25,000 early on Boxing Day, per metrics site TradingView. Bitcoin’s current price is $24,859.
Following the Christmas boom, Bitcoin flipped both Visa and Mastercard to become the 11th largest asset by market capitalization, per Asset Dash, a site that tracks the market capitalizations of the world’s largest assets.
The market capitalization of Bitcoin is $461.9 billion, two billion dollars higher than that of shares in Visa, the 12th largest asset by market cap, which is $459.9 billion, per Asset Dash. The market cap Mastercard, the 17th largest asset by market cap, is $332 billion.
Bitcoin is a long way off flipping the next largest asset by market cap, Class B shares in Berkshire Hathaway, which have a market cap of $531.4 billion. This means that Bitcoin needs to add an extra $70 billion to its market cap.
Bitcoin’s market capitalization is calculated by multiplying its price, $24,859, by the total number of Bitcoin in circulation, 18,581,412. To flip Berkshire Hathaway, Bitcoin would have to reach a price of $28,602.
This would surely irritate Berkshire Hathaway CEO Warren Buffett, who has previously dismissed Bitcoin as “rat poison squared.” According to CNBC, he told shareholders in 2018 that cryptocurrency trading is “just dementia.”
But if it managed to top Berkshire Hathaway, Bitcoin would become the tenth largest asset by market cap. Would this convince Buffett to take the poison?
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.