Bitcoin, the flagship cryptocurrency, surged to $97,000 yesterday, setting a new all-time high and approaching a market capitalization of $2 trillion. At the time of the report, Bitcoin had a market cap of $1.9 trillion, nearly 10 times the size of Nigeria’s economy, which is pegged at $252 billion by the IMF.
This impressive leap in Bitcoin’s value means it is now more valuable than the entire South African economy, the largest economy in Africa, and nearly 10 times that of Nigeria, the fourth largest economy on the continent. In terms of market capitalization among the biggest companies and assets in the world, Bitcoin ranks sixth, surpassing Saudi Aramco and trailing global e-commerce giant Amazon by $230 billion. The rapid increase in Bitcoin’s market capitalization highlights the struggles of the Nigerian economy.
In 2014, Nigeria was recognized by CNN Money as the third fastest-growing economy in the world, valued at $568.49 billion, with a GDP growth rate only surpassed by China and Qatar. Today, Nigeria’s economy has declined to around $260 billion, according to a recent IMF report.
The current state of the Nigerian exchange rate presents a striking contrast between the value of Bitcoin and Nigeria’s financial status. One Bitcoin is currently valued at N163 million, with expectations that it will surpass $100,000 before the end of the year. Analysts have commented on Bitcoin’s market capitalization and its price surge.
David Ingles, a crypto influencer, highlighted Bitcoin’s rising market cap, comparing it to the largest global companies. He tweeted, “Bitcoin price nearing $100K, market cap approaching $2 trillion. If Bitcoin were a company, it would rank as the sixth biggest globally, just behind Amazon and ahead of Aramco.” Market analyst Tony Sycamore noted that the buying activity for Bitcoin far outweighs the selling. He stated, “Buyers are overpowering sellers. While I’m not sure it will be smooth sailing as we approach the $100,000 mark, the demand appears to be insatiable.”
Bitcoin’s surge in market capitalization has also driven the total market cap of all cryptocurrencies up to $3.3 trillion. In summary, Bitcoin’s market capitalization is over half the size of the world’s largest company, Nvidia, which has a market capitalization of $3.6 trillion. Furthermore, Bitcoin’s market cap is 10% larger than the entire market capitalization of silver.
Looking ahead, Nigeria’s economy is projected to reach approximately $372.97 billion by the end of 2024, according to Trading Economics.