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As we approach the end of 2023, the picture regarding the annual performance of investment instruments and market values of companies begins to become clear. Recent data has revealed that Bitcoin has surpassed the world's largest banks regarding market capitalisation and is outperforming gold by 90%.

TURKEY - With the arrival of December, the picture regarding the performance of assets that lost or gained value in 2023 for many reasons, especially macroeconomic developments, began to become clear. Comparisons of digital assets that change rapidly and remain in the headlines throughout the year shed light on the annual performance of Bitcoin and Ethereum. In the list published by Companiesmarketcap and containing the largest assets by market value, Bitcoin was ranked 12th. Bitcoin: It surpassed companies such as Eli Lilly, Visa and TSMC with its market value.

Gate.io Global Growth Director Kafkas Sönmez, who shared his evaluations on the subject, stated, "As Bitcoin is a digital asset and investment tool, comparing it with a company solely in terms of market value should not directly influence investment preferences. Nevertheless, the market values of Bitcoin and Ethereum still provide clues about the economic impact of these two digital assets.” 

Bitcoin is more valuable than any bank

In Companiesmarketcap's list comparing global banks with cryptocurrencies in terms of market value, it was seen that Bitcoin surpassed world-famous banks such as JPMorgan Chase, Bank of America, ICBC, and Wells Fargo with a value of close to 760 billion dollars. Ethereum ranked third on the list, falling behind only JPMorgan.

Highlighting that the market value comparison shows Bitcoin is more valuable than all the banks in the world, Kafkas Sönmez remarked, "When we consider non-banking global companies and assets, we see that Bitcoin is ahead of publicly traded companies like NVIDIA and Tesla. If Bitcoin were a company, it would be the 11th most valuable company in the world. However, there are also comments evaluating that this view is now outdated. According to recent analyses by Deutsche Bank, an increase in value was observed in Bitcoin due to the rising inflation as of 2021, which is parallel to the rise in valuations of technology companies. The analysis emphasises that technology stocks and digital assets experience a correction as interest rates begin to rise."

Bitcoin outperformed gold by 93% this year

Stating that the value losses or gains experienced by Bitcoin and Ethereum in 2023 are shallower compared to previous years, which indicates that large-scale fluctuations in the crypto markets have decreased, Gate.io Global Growth Director Kafkas Sönmez said, “In 2019, Bitcoin's average value is 90%. Its daily volatility was measured at 67%. In 2023, this figure dropped to 40%. This supports the resistance of the two crypto assets against inflation and gives legitimacy to the term 'digital gold', especially attributed to Bitcoin, so much so that Bitcoin appears to have outperformed gold by 93% and Ethereum by 39% since the beginning of the year. Considering the short history of Bitcoin, it can be said that the digital asset with the largest market value has left its volatility cycle behind in a very short time."

“We encourage responsible investment”

Reminding that the last month of the year is a period for many investors to review their portfolios, reweigh assets and make new investment decisions, Kafkas Sönmez said, “With more than 1,700 cryptocurrencies listed on Gate.io and various tools and products that appeal to different investor profiles, We are expanding the opportunities for our users who want to make a fresh start in 2024. We regularly inform millions of users by following the performances of leading digital assets, especially Bitcoin, and new developments in the crypto ecosystem. All of these coincide with Gate.io Turkey's responsible investment approach, which encourages evaluating all variables and considering risks when making investment decisions.”