Bitcoin is undoubtedly disrupting people’s perspective about banks, but how does it currently rank against the world’s largest banks?
According to a recent BuyShares study, Bitcoin would rank as the world’s 8th largest bank with its impressive market capitalization of $169 billion that greatly surpasses that of most leading traditional banks. This market cap shows the relative size of the cryptocurrency compared with conventional financial institutions like banks, where the market cap refers to the total value of shares issued by a publicly-traded company.
The largest bank in the world, JP Morgan Chase, reportedly has a market cap of $433.5 billion, making it at least two times higher than Bitcoin with a $169 billion market cap.
According to the data reportedly analyzed in July 2020, The Bank of America is the second-largest bank in the world with a market cap of $306 billion.
It is also worth noting that at its all-time high in late 2017, bitcoin’s market cap surpassed $310 billion with a price of just under $20,000. In other words, Bitcoin would rank as the 2nd largest bank in the world if it price revisits the all-time high territory, and bank stocks continue to underperform.
Meanwhile, the current third-largest bank is The Industrial and Commercial Bank of China, with a $290.9 billion market cap, which is followed by China Construction Bank with a cap of $218.4 billion. Bitcoin, in terms of market cap, is also lower than Wells Fargo, which has a $204.31 billion market cap.
The sixth-largest is the Agricultural Bank of China with a cap of $171.5 billion, while the highest just before Bitcoin is Citigroup with a market cap of $178.8 billion.
Bitcoin, which has been in existence for about ten years now since its creation in 2009, has gathered a market cap that has surpassed other major banks in the top 10, including HSBC ($157.5 billion), The Bank of China ($146.6 billion), and China Merchants Banks ($137.7 billion).
Bitcoin Outperforming Bank Stocks in 2020
Based on a comprehensive Year-to-date Return of Investment analysis, Bitcoin has an ROI of 27.18%, an impressive record compared to the stocks of major banks. Only China Construction Bank Corporation is yielding positive returns, a mere 2.52%, with Wells Fargo having the worst returns at -53.62%.
Since the creation of Bitcoin, the currency, along with other cryptocurrencies, has always been met with criticism and has not been adopted globally due to its volatility. But with its impressive market cap and ROI value, the currency is leading the cryptocurrency space into mainstream adoption.
Bitcoin is also gaining significant popularity as Coinfomania reported that the world’s largest bank, JP Morgan Chase earlier this year recommended that investors add Bitcoin to their portfolio as a hedge against unstable currencies.
Also, the Bank of American Merrill Lynch (BAML), now known as BofA Securities, acknowledged Bitcoin as the best performing asset of the decade as of last year, December.