Bitcoin is still worth more than the largest US bank



Bitcoin Beats Largest US Bank – Market Cap JP Morgan Chase & Co. Can Bitcoin Replace Gold?

As of this writing, the market capitalization of the largest US bank, JP Morgan, stands at nearly $345 billion, while Bitcoin’s market cap is $368 billion. It has fallen from an all-time high of $69,000 to $19,000, but despite falling more than 70%, it is still bigger than JP Morgan.

The evolution of finance

Finance has evolved over the years. The fiat system that the world uses has various drawbacks. Finance, as we know, has gone through several stages of evolution.

The first mode of exchange was the barter system, in which people exchanged their goods with the goods of others. Then gold coins or other metals were used as a mode of exchange. There was a problem transporting huge amounts of gold.

So the government introduced gold-backed banknotes. Later, President Richard Nixon introduced the fiat system in 1971, in which banknotes were no longer backed by gold.

Bitcoin: the future of finance

Fiat currency is centralized, which means that countries’ central banks have the power to print more fiat currency. As the supply of money increases in the economy, it can lead to inflation.

The Fed printed $3 trillion during the Covid crisis. This lead to inflation 10.1%, a record for 40 years. This proved that fiat is not a store of value.

Source: Twitter

Total Bitcoin supply is capped at $21 million. It therefore cannot be printed whenever certain central authorities wish. The supply cap makes the largest crypto a store of value and virtually inflation proof.

bitcoin vs banks

Banks operate in fiat. They offer various facilities such as money transfer, cross-border payments, lending and borrowing, etc. However, the key is centralization here. The control of customers’ money rests with the centralized authorities that run the banks.

Bitcoin can transact across borders faster than traditional banks. Decentralized finance (DeFi) will allow lending and borrowing without the need for centralized authorities. Institutes like Square are focused on launching Bitcoin-focused DeFi platforms.

With these factors in mind, the community believes Bitcoin will replace banks. This justifies the market capitalization of Bitcoin being higher than that of the largest US bank, JP Morgan.

For the latest BeInCrypto Bitcoin (BTC) and crypto market analysis, click here


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