The capitalization of bitcoin, the best-known cryptocurrency, already exceeds the GDP of many countries, with the exception of 17 territories, having reached 867,635 million dollars in the September average, an amount that, according to data from the International Monetary Fund ( IMF), is higher than the GDP of Switzerland, among others.

This is deduced when comparing the average capitalization throughout September of the main cryptocurrency in the market with the data offered by the IMF on the GDP of each of the countries -updated in April of this year- and that has been carried out by Europa Press .

The only two countries where bitcoin’s capitalization does not represent a double-digit percentage of GDP are the United States and China , where it represents 3.83% and 5.21%, respectively.

These are followed by other great powers at an economic level, such as Japan, Germany, the United Kingdom and India , countries in which the proportion is between 16% and 28%.

As for Spain, the country occupies the 15th position out of the 17 that are above the capitalization of the cryptocurrency , currently representing 59.26% of its GDP.

Far behind are countries such as Austria, Ireland or Norway, where the average capitalization of bitcoin in September is 180%, 182% and 195% of GDP, respectively.

IG analyst Diego Morín has explained to Europa Press that the coronavirus crisis ” caused a change in terms of investment : the technological boom generated a rotation towards other sources of income, such as cryptocurrencies, which has made its capitalization to grow strongly this year. “

Morín does not rule out that the capitalization of some cryptocurrencies will leave Spain’s GDP behind in a while. “Within the investment world we cannot rule out anything, and even less so with the cryptocurrency ‘boom’ , which began back in October 2020,” he said.

Many Spanish investors have opted for cryptocurrencies this year, which has been marked by the economic recovery after the pandemic. In addition, the companies related to these assets seem to agree that Spain is one of the most attractive markets due to the good reception of crypto assets by the youngest .

“While it is true that there is a lot of speculation behind them, many investors look at these assets for the projects they have behind them, such as the blockchain. Even many well-known investment funds have entered the crypto field ,” he said the analyst, who believes that it is “something that has come to stay.”

However, he warns that investors will have to be patient with a market that is sensitive to any kind of regulatory imposition by governments, a high risk even for those who are more expert in this matter.

Energy impact
The energy impact of these assets is also an issue that worries those who are willing to invest their money in the assets , which has not gone unnoticed in the crypto world.

That footprint has made ethereum change its mining system for the so-called ‘proof of stake’, from English proof-of-stake, which will consume 99.5% less energy.

The change has not been welcomed by all, since there are those who consider that this system is more insecure than the previous one and that the important thing is that the energy comes from clean sources, and not what the cost is.

Only the GDP of 37 countries exceeds the capitalization of ethereum
As for the capitalization of ethereum, the second best-known cryptocurrency, it already exceeds the GDP of many countries, with the exception of 37, reaching 394,128 million dollars .

This amount is higher than the GDP of countries like Denmark , where cryptocurrency represents 100.4% of the macro, or Portugal, with 153%.

The GDP of Singapore and Hong Kong , for their part, is also below the capitalization of ethereum, which represents 105% and 106% in relation to this indicator.

While ethereum is still a long way from the figures of bitcoin, which is a much more speculative asset, its usefulness could be even greater: the cryptocurrency blockchain is very frequently used as the basis for other tokens.

A week of ups and downs
At the close of the Spanish market last Friday, bitcoin was changed to 47,336 dollars (40,830 euros), 9.66% more than the previous day, after a week that has been “a complete roller coaster” for the cryptocurrency market, as highlighted by the head of Bitpanda in Spain, Alejandro Zala.

Ethereum, meanwhile, was trading at $ 3,226 (2,782 euros), 8.42% more than the previous day. The announcement of the prohibition of activities related to cryptocurrencies in China shook this market, which fell to 41,105 dollars (35,435 euros) in the case of bitcoin and 2,786 dollars (2,401 euros) in that of ethereum, respectively.

Specifically, the Bank of the People’s Republic of China (PBOC) effectively prohibits any activity related to cryptocurrencies, including payments, ‘trading’ and advertising activities , alluding to the risks that it entails for national stability because of the risks of speculation.

The drop in prices brought about by that news was seen by eToro cryptoasset analyst Simon Peters as an opportunity for long-term investors to continue accumulating portfolios at lower prices, he explained in a previous comment to Europa Press.

By Stephanie Holt

The Great Writer and The Passionate Poet As Well, He Graduated from University Of Florida in Journalism and Brad have around 12 years of experience in news and media section.

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