Bitcoin Catching up on Traditional Finance while Square & eToro 3x Customers via Crypto

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Not so slowly and surely, Bitcoin and cryptocurrencies are catching up on traditional finance like the value of USD in circulation, Gold market cap, US stock market, and others while having a CAGR of over 500%. Meanwhile, interest in crypto is rising along with the use of it as customer accumulation strategy by firms like Square, Robinhood, eToro, and Revolut.

Bitcoin & cryptos making substantial headway

Bitcoin might be going through rough times at the moment, however, the overall picture is only positive and details growth. If we take a look at the data of the different markets, Bitcoin and cryptocurrencies have come a long way.

In 2016, US stock market has been $25 trillion and gold $7.7 trillion while Bitcoin $0.008 trillion and all cryptocurrencies combined $0.009 trillion. In 2018, Bitcoin has grown to $0.145 trillion and cryptos $0.4 trillion while the gold market is at $8 trillion.

Hence, the compound annual growth rate (CAGR) of all the cryptocurrencies is the highest at 554 percent and 339 percent of Bitcoin market, according to the latest report by greyspark partners. Whereas, gold market cap’s CAGR has been mere 2 percent and 14% of the US Stock market as shown below.

Bitcoin is no longer the only player in the market as thousands of other cryptocurrencies have entered the market. In result, BTC dominance has slid down from over 95% in 2013 to 38% in 2017-end and now sitting at just above 55%.


Also, readBitcoin Bear Market Making a Bullish Case, Is it the Right Time to Invest?

Crypto allure: Rising interest & acquisition strategy

Meanwhile, the interest of people in Bitcoin and cryptocurrencies is only increasing as not only the number of users of exchanges like Coinbase, Bitfinex, and Binance but also of traditional service finance providers have increased by using crypto as a customer acquisition strategy.

As shown below, Square cash, eToro, Robinhood, and Revolut have added a mass of customers after launching crypto feature to their platform.

These Fintech companies enjoyed a massive surge in their customer base by adding crypto features like enabling investment in Bitcoin, Ether among others. The report notes that this surge could be the result of the non-beginner friendliness of crypto exchanges. And when these companies enabled crypto trading, people from the sidelines decided to join in.

However, crypto hedge fund industry is still slow moving in the crypto despite the interest shown by Northern Trust, Goldman Sachs among others. The study also reflects on unstable volume spikes, liquidity issues, rising institutional interest but relatively small and maturing regulatory landscape around the globe, all pointing towards a growing future.

Anjali Tyagi

Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.

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