Bitcoin The First $ 60,000 Market Capitalization is on Par With IT Giants

Bitcoin, a crypto asset (virtual currency), hit the 60,000 dollar level for the first time on the 13th. It greatly exceeded the latest peak (58,000 US dollars) on February 21, and the rate of increase from the end of 2020 has almost doubled. Speculative trading is also overheating due to expectations that the base of Bitcoin investment by institutional investors and companies will expand.

According to the information site CoinDesk, the price of Bitcoin rose to 63,322 dollars (about 6.57 million yen) on the morning of the 13th of the US western time. The market capitalization has reached about 1.1 trillion US dollars, which is comparable to the market capitalization of Alphabet, the parent company of Google in the United States (about 1.39 trillion US dollars).

US entrepreneur Elon Musk has given a new stimulus to the Bitcoin market, which has been inflowing funds due to “surplus money” due to monetary easing. Tesla, a US electric vehicle (EV) maker that he leads, announced on February 8 that it will buy Bitcoin worth $ 1.5 billion and will support Bitcoin payments for its products in the future.

After that, the major US bank Bank of New York Mellon announced that it will launch a crypto asset management service in the latter half of 2021, and the US Mastercard is also virtual only for “stable coins” backed by legal tender. The policy was to accept payment in currency. With the infrastructure required for cryptocurrency trading in place, expectations are rising that the base of investment by institutional investors, companies, and individuals will expand.

In some respects, these movements have stimulated individual investors’ willingness to invest and are currently encouraging trading aimed at short-term price margins. However, unlike stocks, it is difficult to calculate the intrinsic value of Bitcoin. The price may fluctuate by 10% or more in a day, making it difficult to spread as a payment currency as Tesla envisions.

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