The three largest cryptocurrencies — bitcoin, ripple and ethereum — now have a combined larger market capitalization than all of Exxon.
That means more money is pumping in and out of these three invisible assets then into a stock that has billions of more shares out there. So here we have a multinational company with bonafide hard assets and prime real estate, a company that controls a commodity needed to heat homes and keep the lights on with a lower market cap than three companies only an MIT student can explain.
A company’s market cap is not a measure of the company’s value. Market capitalization is the number of shares outstanding times the stock price. Exxon has over four billion shares outstanding as of Sept. By comparison, bitcoin has only 16.7 million coins in circulation. Ethereum’s coin, ether, has 96.7 million. Ripple has many billions of coins, around 30 billion. So if this coin keeps increasing in value, it will surpass bitcoin due to the sheer number of coins there are available to investors. The coin is worth a little over $2. Two weeks ago it was worth less than $1.
Nevertheless, while not a measure of a company’s success, financial pundits pay a lot of attention to market cap. Each earnings season, hosts on financial news programs try to guess when Apple becomes the world’s first trillion-dollar company. Their market cap is $878 million.
Further south, one of the stars of Brazil’s economy, Petrobras, saw its market cap collapse from 2008, when it was nearly $100 billion. It’s now worth $67 billion. Ripple (XRP) market cap is $20 billion larger than Petrobras.
In fact, there is currently no company in Brazil that has a market cap larger than ripple or ethereum. Bitcoin is more than two times larger by market cap than Itau, Brazil’s largest corporation.
Bitcoin, Ripple, Etherum Vs. The World
Here’s how these three cryptocurrencies compare to some of the world’s biggest, most well-known corporations in their respective countries. Circulation matters here. Market caps for cryptocurrencies are skewed because of lower supply. Dollar symbol indicates where the cryptocurrency is bigger. Corporations were chosen as brand leaders or market leaders in technology, commodities, consumer retail, automotive, telecom and banking.
|Baidu: $83.75b (China)||$||$||$|
|Rio Tinto: $99b (Australia)||$|
|BP: $140b (UK)||$|
|Goldman Sachs: $96b (USA)||$|
|Target: $36b (USA)||$||$||$|
|Yandex: $97b (Russia)||$|
|Tata Motors: $21.9b (India)||$||$||$|
|America Movil: $58.1b (Mexico)||$||$||$|
|Deutsche Bank: $39b (Germany)||$||$||$|
Source: CoinMarketCap; Bloomberg
This article was curated from Google News. You can read the original article here.