Bitcoin hits $US1 trillion value but bubble fears hover

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Bitcoin’s market value reached $US1 trillion ($1.3 trillion) for the first time, a surge that’s helping cryptocurrency returns far outstrip the performance of more traditional assets like stocks and gold.The largest token has added more than $US450 billion of value in 2021 to about $US1 trillion, data compiled by Bloomberg show. The Bloomberg Galaxy Crypto Index, which includes bitcoin and four other coins, has more than doubled.Speculators, corporate treasurers and institutional investors are thought to have stoked bitcoin’s volatile ascent. Crypto believers are duelling with sceptics for the dominant narrative around the climb: the former see an asset being embraced for its ability to hedge risks such as inflation, while the latter sense a precarious mania riding atop waves of monetary and fiscal stimulus.At the same time, the argument has been made that assigning a market capitalisation isn’t an accurate representation since Bitcoin isn’t a company or even an asset.…

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