Even with all the hand-wringing about bubbles in stock and bond markets, it’s hard to ignore what’s going on in the world of cryptocurrencies and bitcoin.
The value of the largest digital currency continues to soar to record highs after weathering a split last week. It has increased more than threefold this year, compared with a doubling in the value of Vertex Pharmaceuticals, the best performer in the S&P 500 Index.
At the record price of $3,486.73 reached Tuesday, one bitcoin could probably fund a nice vacation. By comparison, one share of Vertex at $154.82 would get you a fancy dinner.
Here’s some other stuff you could buy for the price of one bitcoin, including but not limited to 100 22-pound boxes of Hass avocados.
Bitcoin’s market value is now around $56 billion, surpassing that of General Motors and just shy of Tesla. It still has work to do if it wants to eclipse the world’s richest man, though. Bill Gates is currently worth about $90 billion.
But keep in mind that jury’s still out as to whether bitcoin is the latest mania or a digital asset on top of transformative technology that could eventually lead to the replacement of fiat currencies.
Bank of America strategists wrote in a report Tuesday that while early adopters have enjoyed sharp price appreciation, “there is no certainty that will continue and, most certainly, no way to predict it.”