Bitcoin will soon enter the TOP 10 world currencies now that‘it once again weighs more than 1000 billion dollars.
Bitcoin > France Switzerland
The site FiatMarketCap.com allows us to imagine a future where bitcoin would be the universal store of value. A world where you place your savings in a real store of value (Art, prestigious real estate) is not reserved for those who are already rich.
Bitcoin is already 13th in the world, just ahead of the Swiss Franc and the Russian ruble. Also note that it has also just surpassed silver (metal). It also weighs about 1/10 of all the gold in the world.
The FiatMarketCap ranking is based on the monetary masses of the different currencies. We talk about monetary aggregates in the jargon. These generally range from M0 (the narrowest) to M3 (the widest). The money supply highlighted on FiatMarketCap is M3.
The only exception being the United States since the FED no longer communicates figures for the M3 money supply… The site therefore uses the M2 aggregate instead. As a result, the Chinese yuan is at the top of the ranking when it should be the dollar.
By the way, here is what the different aggregates correspond to, from the most liquid to the least liquid:
-M1: Currency in circulation (notes and coins) + sight deposits.
-M2: M1 + deposits blocked for a period of less than or equal to two years.
-M3: M2 + shares in investment funds + debt securities with a duration less than or equal to two years.
The 116 currencies displayed have a maximum money supply set to “unlimited”. Except for bitcoin which is of course limited to 21 million units.
The US M2 money supply increases by 7% per year on average. In other words, it doubles every eight years. The purchasing power of the dollar has fallen by 98% over the last hundred years…
This is how the fiat system is a ponzi by construction. Money is created from debts which must mathematically increase to allow interest to be paid.
The problem being that without a parallel increase in production (physical limits to growth), wages end up no longer growing as fast as inflation.
Here we are… It’s time to protect your savings with an anti-inflationary currency. Don’t miss our article: Can Bitcoin replace fiat currency? Spoiler, no…
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