Crypto (pt.1) - an overview

Dobromir Risov · April 2025

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Intro

I talk today about the landscape of cryptocurrencies. I present several angles to give readers a deeper understanding. I analyse cryptocurrencies on their own and in comparison to companies who produce goods. My motivation to write this article is simple: most articles cover the changes in price of cryptocurrencies. This article goes deeper. I use data from several sources to provide an in depth view. The result is readers gain more clarity on the market. More blogs on cryptocurrencies will follow. This is part one.

Main

Many people have heard about cryptocurrencies and in particular about Bitcoin. The readers might be surprised when I share with them there are more than 2.4 million different cryptocurrencies (August 2024 the Motley Fool).  The number is unbelievable as such. I want to contextualise this figure by giving three comparisons: 1) there are more than 60,000 publicly listed companies worldwide. 2) There are more than 70,000 investment funds registered in the European Union. 3) There are around 180 currencies in the world. Even if the actual numbers on cryptocurrencies were 1/10 of the 2,4 million stated in the article, this is still a lot. I read cryptocurrencies are easily “produced”. That´s a low barrier of entry and is a hint why there are so many of them. The article further states the motivation to create your own currency is to make a quick profit. And that includes fraud.

Let´s have a look at the most relevant cryptocurrencies. I show left the 5 most expensive crypto currencies on a per unit basis (Source: Bankrate.com,  Nov. 2024). Notice the massive difference in price. You probably have heard about Bitcoin, maybe Ethereum. Have you heard about BNB or Solana?

Market capitalisation

The order changes when I look at market capitalisation: Tether moves from 5th to 3rd rank, Solana stays at 4th and BNB moves to 5th spot. The gaps between each currency are still massive.

Let´s have a comparison with a well known company: Apple. Apple´s outstanding stock is priced at $3,62 trillion as per December 3rd, 2024. Bitcoin´s market capitalisation is at $1,89 trillion. Bitcoin is priced at half of Apple (1.89 / 3.62) 0.52x. Apple produces computers, tablets & phones.

Purchase of Crypto

Cryptocurrencies can be bought at cryptocurrency exchanges (Business Insider). For example: Crypto(com), Gemini or Coinbase. Whether those exchanges meet the same criteria as traditional stock exchanges I do not know. Traditional brokers (for example Fidelity or Interactive Brokers) also offer buying & selling of cryptocurrencies.

Because some cryptocurrencies are very expensive, it is possible to buy fractions of it. Central Banks, the gatekeepers of the national currencies, tolerate cryptocurrencies.

Summary

There is a vast amount of cryptocurrencies and there is a very high concentration in terms of relevance. I contextualised the sheer amount of cryptocurrencies relative to investment funds in Europe, stocks worldwide or national currencies. I further presented the 5 most important cryptocurrencies from two different angles. Bitcoin´s market capitalisation is half of that of Apple. Apple produces a variety of goods bought by many people, Bitcoin doesn´t.