How big is the crypto? Compare the market to traditional asset classes

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Symbiosis

2021 has been a banner year for crypto, with the global market capitalization surpassing $2 trillion for the first time.

NGRAVE put this step into a broader context and explored the size of the crypto market compared to other more traditional asset classes.

To gauge the significance of the industry’s total market capitalization, the crypto security provider compared it to the value of other global industries.

Versus precious metals, real estate and stocks

Currently, gold has a market capitalization of $11.4 trillion, making it about five times the size of the crypto market and 13 times the size of Bitcoin, also known as “digital gold”.

“In 2021, $10 billion was withdrawn from gold funds as BTC released new ATHs amid rampant money printing,” NGRAVE noted, highlighting the competition between the two as Bitcoin grew into an asset. solid “refuge”.

However, compared to the size of the global silver market, which stands at $1.28 trillion, the crypto market capitalization is almost double.

Crypto vs Precious Metals (NGRAVE)
Crypto vs Precious Metals (NGRAVE)

“The largest store of wealth known to man” – the global real estate market is believed to be around four times the world’s GDP, estimated at around $340 trillion – at least 160 times the size of the market capitalization of the crypto.

Despite being compared to the $122 trillion global stock market, crypto is still tiny. However, the crypto market capitalization is more comparable to the EU stock market, which stands at $14 trillion, or even the US stock market, which is valued at $50 trillion.

Crypto vs. Stocks (NGRAVE)
Crypto vs. Stocks (NGRAVE)

Compared to GDP, public debt and student debt

In the case of gross domestic product (the value of all goods and services produced in a country), the crypto market compares well.

In fact, it would rank in the top ten, somewhere between France ($2.63 trillion) and Italy ($1.889 trillion).

Far ahead are Japan ($5.058 billion), China ($14.723 billion) and the United States ($20.894 billion). Meanwhile, Bitcoin would hit the top 20 on its own.

Crypto vs GDP (NGRAVE)
Crypto vs GDP (NGRAVE)

Global debt levels are at an all-time high of $226 trillion and out of reach, however, relative to national debt, the crypto market cap isn’t far off the UK’s soaring at $2.97 trillion.

It is also within the range of the US budget deficit for 2021 ($2.77 trillion) and the US student debt burden ($1.7 trillion).

Crypto vs Government and Student Debt (NGRAVE)
Crypto vs Government and Student Debt (NGRAVE)

Compared to global industries and major stocks

NGRAVE has estimated the total value of the crypto industry, which includes many companies not directly involved in the issuance of cryptocurrency, including hardware wallets, marketing and media agencies, mining companies , blockchain startups, payment networks, crypto-focused venture capital funds, and more. – between 2.35 and 2.9 trillion dollars.

Compared to other global industries, crypto moved into the top 10 last year, pushing out the telecommunications industry ($1.74 trillion).

As it closes in on auto manufacturing ($3 trillion), the crypto industry still lags behind oil and gas exploration and production ($4.6 trillion ) and food ($5 trillion).

Meanwhile, the global financial services industry is still far off the top, with a market value of $22.5 trillion.

Crypto Industry vs Global Industries (NGRAVE)
Crypto Industry vs Global Industries (NGRAVE)

Finally, when compared to the best performing stocks in the world – the biggest tech giants in the world – the crypto market capitalization is very close in terms of valuation.

The world’s most valuable publicly traded company, Apple ($2.98 trillion), is followed by Microsoft ($2.51 trillion), while Alphabet ranks third, with a market capitalization of $2 trillion. dollars.

However, NGRAVE pointed out that Bitcoin had reached a market cap of $1 trillion much faster than these top dogs. Concretely, it only took Bitcoin 12 years, half the time it took Amazon, to reach the milestone.

Crypto vs Best Stocks (NGRAVE)
Crypto vs Best Stocks (NGRAVE)
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