Two of the hottest investment stories of 2020 were the insane rise of Bitcoin and Tesla Inc (NASDAQ: TSLA). Neither shows signs of slowing in 2021 and continues to climb the ladder in terms of value.
What happened: Bitcoin briefly passed the value of Tesla on Thursday morning.
Bitcoin had a market capitalization of $ 717 billion, which would make cryptocurrency the sixth most valuable company in the world, according to AssetDash, if it were a publicly traded company.
Tesla regained sixth position shortly thereafter, with shares rising 4% to $ 788.60 at the start of Thursday’s trading.
Related link: 8 actions to play the Bitcoin resurgence
Because it’s important: The rise in the value of Bitcoin has placed cryptocurrency above some of the world’s best-known financial companies.
In 2020, Bitcoin passed JPMorgan Chase (NYSE: JPM), Mastercard Inc (NASDAQ: MA) and Visa Inc (NASDAQ: V). Encryption has recently passed Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), the company of the legendary Warren Buffett who once called Bitcoin “rat poison”.
In 2021, Bitcoin has already moved up two places in the top 10 list, with a possible third place if it can get past Tesla.
The rise on the ladder comes with the rise of Bitcoin and also the devaluation of two Chinese stocks. Tencent (Pink: TCEHY) and Alibaba Group Holding (NASDAQ: BABA) dropped three places combined this week.
What is the next: If Bitcoin can overtake Tesla again, it will have its next eyes on the tech giant Facebook Inc (NASDAQ: FB).
Facebook has a valuation of $ 769.4 billion. With 18,593,631 Bitcoins currently available, the price of the cryptocurrency would have to rise to around $ 41,380 to spend on Facebook.
Bitcoin will need to hit around $ 40,172 to keep up with Tesla’s rise on Thursday.
Price action: Bitcoin is traded at around $ 38,540 at the time of publication. O Grayscale Bitcoin Trust (OTC: GBTC) rose 8% to $ 47.42 on Thursday and gained more than 380% last year.
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