Among the ways to judge the success or the popularity of something, is by seeing its growth.
Bitcoin is the most popular cryptocurrency. Invented by Satoshi Nakamoto, Bitcoin is an online payment system. He first published his invention in 2008 and in a research paper called "Bitcoin: A Peer-to-Peer Electronic Cash System".
Nakamoto implemented Bitcoin as open source code and released it in January 2009.
About 12 years later, Bitcoin hits $1 trillion market capitalization.
This makes it the fastest asset to ever accomplish this feat.
This happened as investor sentiment towards Bitcoin appears to be at extreme bullishness, with the asset adding roughly $500 billion in market value in 2021 alone.
Traditionally, and historically, assets require to pass a lot of criteria, including astonishing market performances, investors attitude, public reception and many many more, to be worth $1 trillion.
And if ever they can reach that number, it may take decades or even more.
Bitcoin on the other hand, did this in just a decade and a couple of years.
The great performance of Bitcoin can be traced back to a number of tech figures saying that they have made sizable investments in Bitcoins.
Twitter's founder for example, has for numerous times expressed his interest in Bitcoin. Serial entrepreneur Elon Musk said that Tesla has spent $1.5 billion to buy Bitcoins.
With more countries trying to see how cryptocurrencies can fit into their existing systems, and financial institutions like Mastercard, Visa, the Bank of New York Mellon and some others making announcements that they want to make it easier for customers to use cryptocurrencies, the interest for Bitcoin is certainly increasing.
This propels the cryptocurrency's value to that eye-watering market capitalization.
When it was announced that Bitcoin reached the $1 trillion milestone, the digital currency was trading at around $55,000 per coin.
Bitcoin traded at around $10,000 per coin just a year before this.
From white paper to $1 Trillion. #Bitcoin is eating gold alive.
— Cameron Winklevoss (@cameron) February 19, 2021
Bitcoin investors and entrepreneurs celebrated the milestone on social media.
“From white paper to $1 Trillion. #Bitcoin is eating gold alive,” said one of the Winklevoss twins on Twitter.
It should be noted that a market value of an asset is calculated by the total value of the asset. For companies, it's based on their shares of stock, multiplying the price by its total number of outstanding shares.
For Bitcoin, its market value is calculated by multiplying the price of the cryptocurrency with the number of coins that has been created.
This may not be a perfect comparison.
But regardless, the $1 trillion market value would make Bitcoin’s value greater than all but a handful of the world’s stocks.
Only a number of companies have reached a market capitalization that is well beyond $1 trillion.
Notable companies include Chinese oil and gas company PetroChina, the iPhone-maker Apple, the e-commerce titan Amazon, the tech company Microsoft, Saudi Arabia's petroleum and gas company Saudi Aramco, and Google's parent company Alphabet.