Cryptocurrencies have succeeded and surpassed banks in terms of value. We just wait for when – not if – they will make them completely “useless”.
According to Jim Bianco of Bianco Research, the entire cryptocurrency market outperformed the S&P Composite 1500 Banks index, which tracks the performance of publicly traded banking institutions in the United States.
In total, the market capitalisation of all cryptocurrencies exceeded $2 trillion for the first time on April 5th.
Bianco attributes the achievement of this milestone to altcoins, whose market share is now approaching the two-year high amid the current rally. Bianco believes that despite their huge profits they have even more space to occupy.
Altcoins reached 70% of the crypto world in 2018 (mainly ETH). Then the bubble burst. This proposes that altcoins are not excessive compared to bitcoin.
Despite its declining dominance, Bitcoin alone is still worth more than the combination of JPMorgan Chase, Bank of America and Wells Fargo.
To compare, a year ago, the market capitalisation for all cryptocurrencies was lower than that of JPMorgan, the largest US bank.
What comes next?
If the market capitalisation of all cryptocurrencies doubles, then it will have surpassed the value of all US financial companies, including brokerage firms, stock exchanges, asset managers and lending companies.
According to Bianco, if the market cap quadruples, then all the financial companies in the world will disappear.