Sometimes, we need to take a step back to realize just how nascent the cryptocurrency market actually is. One company has as much money in reserves than the entire cryptocurrency market. Let that sink in.
Anthony Pompliano (@APompliano), a cryptocurrency analyst and co-founder of Morgan Creek Digital, made a thought-provoking tweet recently — which puts the entire cryptocurrency industry in perspective.
At the time of writing, the total market capitalization of the cryptocurrency space is only $173B. Comparatively, as Pompliano writes, Apple has $225B of cash on hand in reserve.
CNBC reported that Apple’s expanding cash reserves now stands at a whopping $225B. That places Apple as the most cash-rich company in the world. That news came out today as part of Apple’s fiscal second-quarter earnings report.
Microsoft, comparatively speaking, has the second-biggest cash pile with $113B.
In total, U.S. companies have about $1.3T in cash held overseas. That’s over seven times as much as the entire cryptocurrency market capitalization.
To think that one company has more cash reserves than the entire value of all cryptocurrencies is shocking — but it illustrates just how much room the blockchain sector has to grow. The cryptocurrency market is still a tiny blip in the overall global economy.
If we look at market capitalization alone, it’s clear that the cryptocurrency space is still in its ‘early adoption’ phase. Because almost all value in this market is still largely speculative, the market capitalization has oscillated widely. The all-time-high for market capitalization was close to $800B in January 2018. If cryptocurrencies were able to hit those astronomical numbers with speculation alone, imagine how high it could go with actual real-world adoption.
Do you believe that the cryptocurrency market is currently undervalued? Let us know your thoughts in the comments below.