Is Bitcoin Still Considered Cheap In 2020?

Bitcoin is right at $11,830 as I type and is that considered cheap? For someone without foresight, maybe not, but when one looks at the bigger picture, this is still early days and yes, that is cheap:

Is Bitcoin Still Considered Cheap In 2020?

Despite surging to over 60% year to date, Bitcoin’s fundamentals and the current economic situation begs the question if BTC is still a bargain.

Bitcoin went through a significant price surge in the past month, jumping from $9,000 to about $12,000. By heading into five-digit price territory, this 33% increase has many people speculating that the primary cryptocurrency may be too expensive, and the train has left the station.

However, looking at Bitcoin’s pre-programmed deflationary mechanism and several macroeconomic factors, the asset’s price may actually be (still) cheap.

Before we begin, let’s face some sizing facts. As of writing these lines, Bitcoin’s total market cap is approximately $220 billion, whereas the entire crypto market cap is $370 billion. The all-time high was over $800 billion in the peak of the crypto bubble of 2017.

In contrast, all Gold existing worth $12 trillion (55x Bitcoin’s), whereas the world’s 2000 billionaires alone worth $8 trillion. The stock market value is roughly $100 trillion.

Some would still say that Bitcoin’s market cap is overvalued; however, keep the above figures when thinking how tiny this market is compared to other types of investments.


Tyler Winklevoss: People ask me all the time if it’s too late to buy #Bitcoin. I tell them that it’s the bottom of the first inning and that one day they’ll look back and understand just how early it is.

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Master Asked on August 15, 2020 in Bitcoin.
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