Since its conception in 2009, Bitcoin is slowly being recognized as a new asset class.  Its size is creeping up to gold, stocks and bonds.  

First consider its annual trading volume, in trillions $USD: 

  • $11.47 BTC[1]
  • $45 Gold[2]
  • $38.4 All Cryptocurrencies[3]
  • $117 USA Equities [4]
  • $154 USA Treasury Bills [5]

Note that the trading volume of all cryptocurrencies are nearing the volume of gold. With a 3-4x in volumes, bitcoin would be comparable to that of all equities or treasuries traded in the USA.  

Next, consider the market cap of the largest asset classes of the world, in trillions of $USD:

  • $0.5 Bitcoin[6]
  • $0.607 All Cryptocurrencies[7]
  • $10 Gold[8]
  • $36 Equities[9]
  • $66 Global Equities[10]
  • $272 Total Debt[11]
  • $280 Real Estate[12]

Bitcoin and cryptocurrencies are a tiny fraction of the largest asset classes but they are rapidly growing. Witness the growth in the average daily spot volumes over the last four years, in billions $ USD: 

  • $2.3               2017 [13]
  • $6                   2018
  • $16                 2019
  • $32                 2020[14]

Finally, consider the growth in crypto derivative average daily volumes, in billions $USD: 

Bitcoin has a long way to go before it catches up to stocks, bonds and the other largest asset classes of the world, but it’s making good progress. I wonder what these figures will look like in 5 to 10 years. 

Will crypto be comparable in size to our current largest assets or will it disappear? 

Read more from Mitchell

The Signitt Network

Tags: Mitchell Dong, CEO, Savvy Investor, Pythagoras Investments


[1] Data from CoinMarketCap to calculate a volume figure

[2] Average daily number over $0.18 trillions or $45 trillion annually. https://finance.sina.com.cn/money/nmetal/hjzx/2020-12-04/doc-iiznctke4794231.shtml (Only Chinese version)

[3]  For top 20 cryptocurrencies.  https://coinmarketcap.com/ (Have to calculate manually)

[4] https://markets.cboe.com/us/equities/market_statistics/historical_market_volume/market_history_2020.csv-dl

[5] https://www.sifma.org/wp-content/uploads/2020/07/US-Research-Quarterly-Fixed-Income-Issuance-Trading-2020-10-13-SIFMA.pdf

[6] data from CoinMarketCap.  https://coinmarketcap.com/currencies/bitcoin/

[7] Data from CoinMarketCap for top 20 cryptocurrencies.  https://coinmarketcap.com/Calculate manually from web

[8] https://markets.businessinsider.com/currencies/news/bitcoin-market-cap-could-hit-1-trillion-2021-crypto-expert-2020-12-1029908224 (Currently Gold Market Cap close to 10 trillion)

[9] As of 09/30/20  https://siblisresearch.com/data/us-stock-market-value/

[10] US is 54.5% of world, which means $66 trillion  in total globally. https://www.statista.com/statistics/710680/global-stock-markets-by-country/

[11] https://www.cnbc.com/2020/11/19/coronavirus-drives-global-debt-to-a-new-record-high.html

[12] https://simonthorpesideas.blogspot.com/2020/05/the-value-of-real-estate-in-world-280.html

[13] CoinMaketCap https://coinmarketcap.com/ 

[14] CoinMarketCap

[15] https://dvex.io/crypto-derivatives-landscape-in-2019-looking-ahead-to-2020/

[16] Calculation base on this link: https://medium.com/@TokenInsight/q1-2020-cryptocurrency-derivatives-exchange-trading-volume-e39d9334eb87. In this report, it can shows 2019 ADV is about 8.5. From similar report: ADV: Q1:23.3, Q2:22.64, Q3: 29.35