Bitcoin now bigger than Buffett, Boeing and New Zealand economy

Bitcoin’s extraordinary price surge means its market capitalisation now exceeds the annual output of whole economies, and the estimated worth of some of the world’s top billionaires.

With the debate over its bubble status still raging, the flagship cryptocurrency continued its march higher on Monday, solidifying above $US11,000 and bringing its climb this year to more than 1,000 per cent.

With market tracker Coinmarketcap.com putting the total value of all bitcoins in circulation at $US190 billion ($250 billion), it’s come a long way from August, when one coin could buy you a hefty supply of avocados.

Here are five things that have been eclipsed by bitcoin in terms of market capitalisation:

New Zealand’s GDP: New Zealand’s farm-and-tourism-led economy is valued at $US185 billion, according to World Bank data as of July, putting it some $US5 billion below bitcoin. The cryptocurrency’s market cap is also bigger than the likes of Qatar, Kuwait and Hungary.

Goldman Sachs, and UBS: Bitcoin’s run-up has even seen it valued more highly than two of the world’s most influential banks. Goldman Sachs’s market cap was $US97 billion as of Friday, while Zurich-based UBS Group came in at about $US67 billion. Add those numbers together and it still falls short of bitcoin.

Both financial heavyweights have taken a hands-off approach to the digital currency, with Goldman CEO Lloyd Blankfein saying it’s too early to draft a bitcoin strategy and UBS – the world’s biggest wealth manager – saying it won’t allocate it in portfolios because of the threat of a government crackdown.

Boeing: It may make jumbo jets but Boeing’s market cap of $US162 billion is also less than that of a digital currency that didn’t exist 10 years ago.

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Source: Bitcoin now bigger than Buffett, Boeing and New Zealand economy – Sydney Morning Herald