Cryptocurrencies Continue to Grow in Value Over Other Assets

Bitcoin

As Bitcoin’s price rose to an all-time high, South Korean cryptocurrency exchanges have officially surpassed the value of the countries stock market while Bitcoin becomes the best performing asset of the last decade.

The leading cryptocurrency has reached a market capitalization of about $1.1 trillion after experiencing a surge in its value that saw it reach an all-time high of $61,711.87 back on Mar 13 of 2021, marking a new milestone for the cryptocurrency market.

Cryptocurrencies Keep Expanding

While Bitcoin has seen major points of resistance over the past years, the coin has steadily continued to climb in value ever since its crash in 2018 and 2019, with 2021 seeing it raise in value sharply as its value increase by more than 300%.

However, the success during 2021 is not limited to Bitcoin as the entirety of the crypto market has experienced increased values and investments from individuals and organizations around the world.

Personalities like Elon Musk, Mark Cuban, and Taylor Swift continue to be vocal about their support toward cryptocurrency and NFTs.

Bitcoin is Now One of the Best Performing Assets in 2021

Earlier on March 13th, before the surge in value experienced by Bitcoin, Messary researcher Roberto Talamas tweeted a chart comparing the performance of the Cryptocurrency with other assets like Nasdaq 100. EAFE stocks, Gold, US dollar, and others.

The information compiled by Mr. Talamas shows that over the last decade, Bitcoin’s Annualized returns were 230.6%, about 210% higher than the entirety of the Nasdaq 100 and other types of assets.

Despite being constantly referred to as “digital gold”, the data shows that gold’s annualized performance was 1.5%, which is consistent with its status as a hedging tool but shows a clear difference between the two assets.

While the data is not enough to compare the different assets comprehensively, it reflects the growing popularity of digital assets which has been lead by Bitcoin.

So far in 2021, the entirety of the crypto market has grown by over 150% while Bitcoin’s dominance has fallen from around 70% to 60.8%, suggesting an increasing decoupling.

South Korean Stock Market is Surpassed by Crypto Exchanges

South Korean top crypto exchanges reached a combined 24-hour trading volume of $14.6 billion according to data compiled by CoinTelegraph.

On the other hand, the trading volume for the Korean Composite Stock Price Index (KOSPI) was $14.5 billion while Korean Securities Dealers Automated Quotations (KOSDAQ) only had a trading volume of $10 Billion during the same period, both lower than its cryptocurrency counterparty.

This behavior was likely triggered by Bitcoin’s surge over the weekend as Korea has been one of the countries where investors have been the more enthusiastic about cryptocurrency trading.

The Asian country’s National Assembly has been one of the few legislative bodies in the world to fully pave the way for regulation of cryptocurrency and crypto exchanges, which has facilitated the adoption of digital assets among institutional and private investors.

New Markets for Cryptos

Cryptocurrencies have been especially attractive to young Koreans who see them as an opportunity to achieve financial freedom and prosperity while actively investing in the technology of the future, something of special interest in one of the most technologically advanced countries in the world.

South Korea is widely known for its open attitude toward new technologies and their applications, also characterizing itself for being one the first countries in recognizing the potential revenue generation of Esports and online gaming, an industry that continues to grow every year.

Cryptos have become part of the investment landscape globally, and it looks like South Korea will continue to be a major market for decentralized currencies.

The post Cryptocurrencies Continue to Grow in Value Over Other Assets appeared first on Blockonomi.

Leave a Reply

Your email address will not be published. Required fields are marked *