October 17, 2020

The capitalization of Bitcoin outstrips the world largest banks and companies during the pandemic

Many world currencies are falling due to crises and a pandemic but Bitcoin is growing as confidently as gold. Over the summer and autumn of 2020, the six largest banks in the world lost their capitalization, and the first cryptocurrency confidently overtook four of them. Bitcoin also overtook some of the world's largest companies suffered heavy losses due to the pandemic and the global crisis.

Banks are rushing down

Until March 2020, when the world went to the coronavirus pandemic and economic crisis, six major world banks had overtaken Bitcoin in capitalization. Among them were China Construction Bank, Agricultural Bank of China, and Japan Post Bank.

Over the next few months, 14 of the world's largest banks lost a total of $635.33 billion in capitalization. At the same time, Bitcoin has grown from $130 billion to $192 billion. This is an increase of more than 48%.

As a result, four of the six major banks that previously had outstripped Bitcoin in capitalization, fell lower. Now only two of them have their capitalization higher: these are Industrial and Commercial Bank of China and JPMorgan Chase Bank (USA).

High-tech companies are «catching the wave»

According to PwC, the capitalization of the largest companies in 2020 also dropped significantly: by about 15%. As of December 2019, experts estimated the market capitalization of the top 100 companies in the world at $ 25.4 trillion, but during 2020 there was a decrease to $ 21.5 trillion.

Saudi Arabia, the oil company, sank to the company's capitalization dropped to $1.78 trillion, and lost to bitcoin.

However, some companies have managed to grow. Among them are online retailers (such as Amazon), high-tech companies (Nvidia, Microsoft, Apple), online services for work and leisure (Netflix, ZOOM); medical and biotechnology companies (Gilead Science, Moderna).

Tesla overtook Bitcoin despite the rapid growth of the cryptocurrency. In July, the capitalization of Elon Musk's company reached $ 224.05 billion and continues to grow. Therefore, among the leading companies in terms of capitalization, bitcoin did not come close to the top, although expert investor Ronnie Moas is sure that it will.

Earlier, we talked about what lessons and prospects the cryptocurrency showed investors against the background of COVID-19.