Bitcoin's capitalization surpassed well-known companies

Bitcoin - the most popular digital currency – has just exceeded the $6,000 level, making its capitalization surpass many well-known companies and banks.

According to The Economist, last weekend marked a new record high of Bitcoin with the $6,000 level pierced. Despite the fact that it retraced, this cryptocurrency was highly supported by the rising demand from Zimbabwe as the economic posture in the country was getting worse, leading people to actively find another asset to “hide in safe places”.

TheNational reported that demand for bitcoin was increasing sharply, and investors seemed ready to overpay almost twice. $10,000-per- bitcoin transactions have been witnessed on Golix.io.

The important reason making the current situation was because the authorities of some countries, where black markets were flourishing, restricted the capital movement along with blocking credit-card transactions. Hence, the population had to seek for another method, and they chose to purchase US dollars and bitcoins.

Until now, bitcoin’s capitalization has turned above the $90 billion level, higher than the biggest companies of the Russian Federation such as Sberbank ($ 72.5 billion) and Rosneft (almost $ 60 billion).

Digital currencies and ICOs have been growing sharply since the beginning of 2017, with millions of people investing in. The $5,000 level in Bitcoin price has been broken quickly, followed by a surge to surpass the $6,000 level. According to a CNBC survey having 23,000 participants, a bitcoin was forecasted to cost more than $10,000 in “forthcoming years”. Mike Novogratz, who predicted the rapid growth of cryptocurrencies a few years ago, believed that the sharp growth of the digital currency market hinted for a potentially colossal bubble, however, “prices are shooting up, and this profitable opportunity should not be ignored.”

"Do not forget that bubbles happen with things that fundamentally change the world. Bubble in the shares of railway companies. The railways fundamentally changed the world we live in,” he said.

In contrast with bitcoin supporters, James Dimon, Chief Executive Officer of JPMorgan Chase, judged that cryptocurrencies and related financial assets were "swindle" and "worse than tulip fever", and asserted to fire any employee who intended to trade virtual currencies. After Dimon’s announcement, bitcoin price has spent a day declining around 11%.
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Weekly market overview September 17 - 21
Weekly market overview September 17 - 21
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