Bitcoin becomes worlds largest bank

Sunday 22 November 2020, 4:46 AM AEST - 3 days ago

BitcoinBitcoin becomes world's largest bank 19

  • Bitcoin has grown to become the largest bank in the world by market cap
  • The crypto asset has overtaken big financial institutions like JP Morgan, Citibank and others

Bitcoin has overtaken JP Morgan to become the biggest bank in the world. The coin overtook the major financial institution for the first time after its price rose above $18,900.

Bitcoins current price gave the coin a market cap of $350 billion. This is a record for the industry. JP Morgan, on the other hand, has a market cap of $349 billion.

Over 150 banks were listed. According to available data, these banks are worth well over $3 trillion.

Bitcoin in recent time have also been able to carry out some basic traditional banking services. For example, users of the decentralized finance (DeFi) can lend and borrow through custodial assets. Not only that, payment can be processed and other financial services can be carried out like in international trades.

This makes the coin some sort of bank as it is able to perform some basic banking functions. According to available measurements, Bitcoin is the biggest bank in the world.

Banks like Citigroup, Goldman Sachs and others have trillions in their assets under management. Bitcoins market cap is also more comparable to the assets under management.

Most banks also have stocks where the users can earn dividends. Holders of the crypto asset can also be said to be holders of shares as they tend to gain from the use of the coin.

Bitcoin price keeps growing as adoption rate increases

The price of Bitcoin has kept rising in recent times owing to the growing increase in its adoption by corporate institutions.

Billionaires and celebrities have also shown their interest in the crypto industry which has improved the level of adoption of the coin.

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