forum. 2 trillion US dollars (about 1.67 trillion euros): This is the capitalization of all cryptocurrencies in April 2021. In comparison, this is equivalent to twice the value of all real estate in Paris and five times that of LVMH, the largest European capitalization of LVMH, or…all subprime mortgages that led to one of the largest financial crises in history.
Although we must beware of hasty extrapolation (the extent of the subprime mortgage crisis is largely caused by debt securitization), this figure is dizzying and illustrates the proportion of virtual assets in global finance.
Historically, most cryptocurrency usage has been in Asia. However, the evolution of regulations and mentality tends to think that a reversal is taking place: the possession of cryptocurrency is still tolerated in China, but exchanges have been banned there, and Bitcoin, led by well-known influencers (Elon Musk, Jack Dorsey), institutionalizes the main West Financial institutions (JP Morgan, PayPal, Visa, Blackrock) are also in progress.
The IPO valuation of Coinbase, the world’s second largest trading platform, is close to that of BNP Paribas, which also signifies investors’ confidence in the development of this market.
Bitcoin is the dean and undisputed king of virtual assets. Its value still accounts for nearly 60% of the industry’s total capital, and the evolution of its price mainly guides the entire market. However, the IT infrastructure of its network is still mainly in Chinese: It is estimated that by 2020, about 65% to 75% of computing power will reside in China.