Since its launch in 2009, bitcoin has ushered in a brand new age of blockchain know-how and digital currencies. With all this discuss of bitcoin, you’d assume it might be in all places; however how a lot of the world’s cash is really in the type of this cryptocurrency?
Global Money Supply
To get a way of how a lot of the world’s cash is in bitcoin, we should first decide the complete quantity of cash globally. As it seems, this is not the best query to reply. Such a calculation should bear in mind dozens of classes of wealth, together with not solely banknotes however treasured metals, cash market accounts, debt, and lots of different figures. The Money Project tried such a calculation in October 2017 and estimated round $36.eight trillion in world slender cash. As of January 2020, this quantity is absolutely outdated, nevertheless it was additionally arbitrary sufficient anyway to warrant our utilizing it for a tough estimate (seeing that it did not embrace broad cash, world debt, actual property, or many different parts).
Value of Bitcoin
According to CoinMarketCap, the worth of all the bitcoin in the world is $156.7 billion as of January 15, 2020. For comparability, Forbes estimates the web value of Amazon (AMZN) founder Jeff Bezos at $115.5 billion. This makes the market cap of bitcoin simply over a 3rd bigger than Bezos’ fortune.
How does bitcoin examine towards gold, to take one other instance? To calculate the complete worth of all gold in the world, we start with the World Gold Council’s estimate that, as of the finish of 2017, about 190,000 tonnes of gold had been mined all through historical past. Because gold is basically indestructible, and since on common round 2,500 tonnes are mined per 12 months, as of this writing we will safely estimate round 195,000 tonnes of gold in existence. There are 32,150.7 troy ounces of gold in one tonne, and with a present value of gold per ounce of $1,558.15, we will estimate the complete worth of all gold as:
32,150.7 troy ounces per tonne x 195,000 tonnes of gold x $1,558.15 per ounce = $9.eight trillion.
In complete, the present worth of all bitcoin is about 1.6% of the worth of all gold. It’s solely about zero.four% of the estimated worth of slender cash from The Money Project’s report.
Bitcoin is, of course, the most well-known and highly-valued cryptocurrency in the the world financial system, nevertheless it is removed from the just one. If we mix the web value of bitcoin with that of litecoin, monero, ether, and all different cryptocurrencies with a market cap of no less than $1 billion, the complete worth involves roughly $214 billion. No small quantity of cash, to make sure, nevertheless it’s nonetheless solely about zero.5% of the complete worth of all slender cash per the above figures.