In a recent post by TNW’s robot ‘Satoshi Nakaboto’ has claimed that Bitcoin BTC is now worth as much as the beverage company, Coca-Cola. The recent post by Nakaboto provided a handful of useful insights on BTC’s on-chain features. After the much anticipated rally of Bitcoin, its market capital stands at $209.65 billion. On the other hand, the market capital of Coca Cola is $202.92. Clearly, the caps of BTC and Coca Cola are quite comparable, rather BTC’S capital has surpassed that of Coca Cola’s by quite a margin.
Traditional Stocks And Their Value Are Dependent On The Demand Of The Company
However, comparing cryptocurrencies with the stock market may be highly speculative sometimes. The value of Coca Cola stocks are totally driven by the demand of the company. Furthermore, buying BTC is entirely different than purchasing the conventional stocks. This is because: firstly, unlike Coca Cola, Bitcoin is not a corporate company. Secondly, it is not issued by any centralised financial institution like banks or government. Hence, its value solely influenced by its supply, the cost required to mine a single BTC, its competitors and the exchanges its trades on.
The Pandemic Has Affected The Demand Of The Beverage Company
Moreover, Coca Cola’s demand has been heavily affected by the corona virus pandemic. Shutdown of movie theatres, malls, restaurants and outlets for months has directly impacted the company’s business. Consequently, it’s revenue in the second quarter declined significantly. The net volumes plummeted down by 28% to $7.2 billion in Q2. But this isn’t the case for BTC. It is currently trading at $11,364.13 just some hundred dollars shy of crossing the $12000 mark. With its market cap standing at $209.65 billion which is 63% of the entire crypto market , it has continued its domination in the cryptocurrency industry.
BTC Showing More Optimistic On Chain Features
Moreover, the current pandemic situation has affected BTC in a more optimistic way. BTC has been seeing an increasing number of active addresses everyday. Currently there are approximately 18,282 ‘Bitcoin millionaire’ addresses which have stored BTC worth a million US dollars. Although the price of BTC right now is down by 5.76% in the last 24 hours. A total of 292,274 transactions took place as of now. Once again as mentioned above, comparison between a crypto and a traditional stock is completely hypothetical but there’s no denying that BTC caps are now comparable with that of Coca Cola’s.
