Bitcoin’s journey is dotted with highs and lows, riding a dark, see-sawing horse to territories yet unknown.
August 25, 2019 will certainly be remembered as the date of one of Bitcoin’s greatest achievements. The King of (or Queen, depending on your gender bias) of cryptocurrencies has surpassed the realized $100bn market cap for the first time in its remarkable history.
The realized market cap is another way of calculating Bitcoin’s market value. It measures the average cost basis of Bitcoin holders, taking into account the price at which a given coin last changed hands, rather than considering a uniform price measurement. In other words, analysts multiply the price that each coin traded at by the size of each trade. The resulting figure is deemed to be the realized market cap.
This milestone represents an important and quite revealing event for Bitcoin, an additional notch in a history of important and equally revealing successes and milestones. From somewhat humble and niche beginnings, Bitcoin has come a long way in redefining the world’s financial landscape.
The price of Bitcoin is hovering at just a whisker over $10,000 at the time of writing. While there have been slight fluctuations north and south of that figure, the core figure of $10k has remained more or less constant for the last few weeks.
So why is the $100bn realized market cap fact significant?
Bitcoin hit an all-time high price of about $20,000 in December 2017, and while Bitcoin’s value has not even come close to that ceiling since, it is important to note that the currency’s realized market cap surpassed $90bn shortly before Bitcoin hit that historic price of $20,000. History may or may not repeat itself, but one thing is certain: bitcoin is making history every single day.