At Bitcoin MENA 2024, Binance CEO Changpeng Zhao said Bitcoin could surpass the market cap of gold. In an interview during the event, Zhao said that while determining the supply of gold is difficult, Bitcoin's fixed code, transferability, and tradability offer important advantages.
He suggested that Bitcoin's valuation could exceed gold's estimated market cap of $16 trillion, which works out to about $850,000 per coin based on the 19.7 million BTC in circulation. According to CryptoSlate's analysis, gold's market cap is approaching a $17 trillion valuation, and Bitcoin would need to surpass $876,000 to close the gap. Bitcoin's market capitalization currently stands at just under $2 trillion.
Zhao pointed out that relying on old benchmarks to value new assets underestimates their potential. Bitcoin's current price is near $97,000, following recent volatility and record highs. Market factors such as institutional participation, regulatory changes, and technological developments can influence the approach towards such milestones.
The debate surrounding Bitcoin's role as a type of digital money, store of value, or medium of transaction continues. But it's hard to disagree with Mr. Zhao's assessment of the comparison with gold.
Liam Akiva Wright
Liam Wright, also known as “Akiba,” is a reporter, podcast producer, and editor-in-chief at CryptoSlate. He believes decentralized technology has the potential to bring about far-reaching positive change.
