Apple is the First US Company to Be Worth $1 Trillion: Could Bitcoin Be Next?
Shares of Apple climbed above $207.05 on Thursday, helping Apple hit the magic $1 trillion mark. Apple is the first US company to be worth more than $1 trillion on a public stock market – but could bitcoin be next?
Analysts believe bitcoin could rise to $20,000 or $50,000 before the end of 2018. Of, course, bitcoin could also fall below $1,000 – we just don’t know. What we do know is that the market cap of the entire crypto industry reached a peak of around $800 billion in December 2017 – just a stone’s throw away from $1 trillion. It’s not outlandish to believe that the crypto market could approach that $1 trillion figure again, or that bitcoin itself could breach a $1 trillion valuation.
The approval of a bitcoin ETF could easily send bitcoin catapulting to new all time highs, putting the market cap above $1 trillion.
In any case, Apple’s shares surged 5% into Wednesday, and that rally continued Thursday. As we go to press, Apple (AAPL) is up 3.21% on the day, currently sitting at $207.97 per share.
Over the past four decades, Apple has continued to innovate in a way seen by few other companies in history. After founding his company in a California garage, Steve Jobs grew Apple into a personal computing giant. Apple later launched the iPhone and iPad, paving the way for the future smartphone and tablet industry.
Today, Apple has continued to innovate. While Apple’s hardware sales have taken a backseat, Apple has led the way in the non-hardware services category. As Apple announced on Tuesday, Apple Services, which includes the App Store and Apple Music, saw a 31% jump in revenue.
Since its IPO in 1980, Apple’s stock price has risen nearly 40,000%.
The $1 trillion mark is significant for a number of reasons. For context, Apple being worth over $1 trillion means its value is greater than the gross domestic product of all but 26 major countries. $1 trillion is higher than the GDP of Argentina, Sweden, Switzerland, the Netherlands, and the majority of the world’s countries.
No public US company has ever hit the $1 trillion valuation mark. However, this isn’t the first time a publicly-traded company has crossed that boundary. PetroChina was briefly worth more than $1 trillion in November 2017, although it stayed at that value for less than a day. Today, PetroChina is valued at around $500 billion, lower than Chinese tech giant Alibaba.
Saudi Aramco, meanwhile, another state-owned oil company, is reportedly considering a public offering that would value the company at over $1 trillion.
Stateside, companies like Amazon, Microsoft, and Alphabet are also in the race to hit $1 trillion. Amazon is the closest competitor, sitting at a market cap of around $872.5 billion.
Apple, meanwhile, shows no signs of slowing down. Analysts believe Apple will hit a price of around $213, placing its value at $1.05 trillion.
What Needs to Happen for Bitcoin to Reach a $1 Trillion Market Cap?
Today, bitcoin sits at a market cap of around $130 billion with a price of around $7500. The total market cap of the cryptocurrency industry, meanwhile, is $266 billion.
That’s a long way away from $1 trillion. The crypto markets would need to quadruple in value to break the $1 trillion mark, while bitcoin itself would need to multiply its market cap 8 times over.
A bitcoin ETF might be the factor that pushes bitcoin to a $1 trillion market cap.
Analysts believe the SEC’s approval of a bitcoin ETF would spark the longest bull run in bitcoin history. It would be the first time a major US regulatory agency approved bitcoin as a financial product. It would transform the way we see bitcoin overnight. It would also pave the way for institutional investors to flood into the space.
If a bitcoin ETF is approved, then it seems likely bitcoin would hit a $1 trillion market cap – and it might achieve that market cap 30 years sooner than Apple.
Here are a few of the reactions to the news on Twitter:
Apple becomes the first $1 trillion company.. Bitcoin IS next!
— Crypto Sara (@AltcoinSara) August 2, 2018
Wow apple 🍎 is near a trillion dollar market cap. Satoshi owes Jobs a dollar. We think an Apple Pay bitcoin crypto wallet could be the first 2 trillion mover.
— Bitcoin, Music, Television (@TeamSatoshi) August 2, 2018
Bitcoin is the Apple Inc of money and we're still in the 90s on Apple's time scale.
— Brenden Matthews (@brndnmtthws) August 2, 2018
Apple is worth a trillion dollars and that is one singular company, yet people thing bitcoin is overvalued at 130 billion and it is literally a world currency… #bitcoin
— Julian Hunt (@JulianHunt2) August 2, 2018
An interesting question..
— Greg Ausley (@gausley) August 2, 2018