The total market value of bitcoin exceeded $ 1 trillion on Friday as the price was above $ 55,000.
Enthusiastic supporters are fond of saying that digital money is on its way “to the moon.” For the less loyal, determining the value of bitcoin is much more complicated.
Bitcoin has skyrocketed since the beginning of 2020 when it was trading around $ 7,000. A steady stream of institutional demand has been credited for driving much of that rally. Billionaire hedge fund managers buy: Paul Tudor Jones described it as “a huge profit. “Recently a handful of companies, particularly Tesla Inc., have started buying it for their physical stores.
But determining a fair value for bitcoin is much more difficult than valuing stocks, investors say, both because bitcoin is not a traditional asset and because there is so much about it. misunderstood.
“Adding value is a difficult asset class,” said JP Morgan analyst Nikolaos Panigirtzoglou, who believes the value of one bitcoin could be as little as $ 11,000 or as high as $ 146,000.