• September 19, 2020

Bitcoin is now the 6th largest world currency

At its current market cap, Bitcoin has a cash supply worth over 170 different fiat currencies.

Since its creation just over ten years ago, Bitcoin (BTC) has seen its cost rise from practically nothing, up to its present value of over $11,300.

At that moment, Bitcoin’s market capitalization, described as its circulating supply multiplied by the value of each unit, has shrunk to reach more than $200 billion, making Bitcoin not only the biggest cryptocurrency ever to exist but also larger than many fiat currencies.

Though Bitcoin and fiat currencies are not exactly equivalent to the way the circulating value is calculated, we can roughly estimate where Bitcoin sits from the world currency positions by comparing its market capitalization to the M0 money supply fiat currencies.

The M0 figure reflects the entire value of all banknotes, coins, and other money substitutes that could be readily converted into cash. The M0 worth is also commonly called”narrow money.”

Where Bitcoin fits into the world money positions

The US dollar (USD) is now by far the greatest fiat money by circulating supply. According to the US Federal Reserve, there’s $1.95 trillion value of Federal Reserve notes and coins in circulation – more than three-quarters of that is composed of $100 and $20 bills.

Next up is the Euro (EUR) – relatively new money initially launched in 2002 and is currently used throughout much of Europe and from many EU member countries.

Like the US Federal Reserve, the European Central Bank maintains a Current reference for the amount of EUR banknotes and coins it enters into circulation. According to the official figures, there was just a shy of 1.38 trillion euros in circulation as of the latest update (July 2020). This has ballooned over threefold since the euro initially launched, and the complete value is mostly composed of $20 and $50 notes.

The Chinese Yuan (CNY) is the world’s third most valuable money. According to statistics from TradingEconomics, there are approximately 8 trillion CNY in circulation, with an equivalent value of $1.15 trillion. The Japanese yen (JPY) is not far behind in the fourth position with 106 trillion circulating JPY coins and notes as of July 2020, or just north of $1 trillion when measured against the dollar.

The US dollar, euro, Chinese yuan, and Japanese yen are the sole fiat currencies with an entire M0 capitalization of more than $1 trillion. The fifth-largest money by circulating distribution is the Indian rupee (INR), which has over 31 trillion INR in circulation, now worth just north of $425 billion.

Last, but by no means least, Bitcoin (BTC) currently occupies the sixth-largest money position by circulating supply, narrowly edging out the Russian ruble (RUB) to secure its own position.

Bitcoin now has 18.48 million units in circulation, each worth $11,722 at today’s value. This puts Bitcoin’s M0 cap at $216.5 billion, making it about half of the Indian rupee’s size and only over one-tenth of the magnitude of the US dollar. At its current market cap, Bitcoin has a cash supply worth over 170 different fiat currencies.

At its absolute peak, Bitcoin achieved a market capitalization of close to $330 billion. At the moment, this could have made Bitcoin the fifth largest world money.

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