Bitcoin became the 3rd largest global currency in the world

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2021-03-22 03:27:43

The largest bank in Germany – Deutsche Bank has ranked Bitcoin as the 3rd place among all global currencies by market capitalization in circulation. This is an achievement worthy of its position and what Bitcoin has achieved in the development process in the past few years.

Since it was created just over a decade ago, Bitcoin (BTC) has made a miracle rise from its plump zero start to a current value of over $ 59,000. Bitcoin’s market cap, the circulating supply multiplied by the value of each unit, skyrockets to over $ 1,000 billion, making Bitcoin not only the world’s No. 1 cryptocurrency, but bigger than most. Government fiat currency.

Recently, Deutsche Bank officially ranked Bitcoin as the number 3 currency in the world, second only to USD and EUR, and also said that Bitcoin is too important to ignore. At the beginning of 2019, Bitcoin was only equivalent to 3% of the USD in circulation, but by February 2021, BTC was over 40% of that USD.

Total monetary value in circulation in billions of dollars.  Source: Bloomberg Finance LP, coinmarket cap, Deutsche Bank.
Total monetary value in circulation in billions of dollars. Source: Bloomberg Finance LP, coinmarket cap, Deutsche Bank.

The dollar remains by far the largest fiat currency in terms of circulating supply and market value, with a total circulating value of $ 2,000 billion. This was followed by the EUR – a relatively new currency that first launched in 2002 and is currently used across Europe and most of the EU member states.

The Japanese Yen (JPY) is not far behind in fourth place after Bitcoin, only $ 1,090 billion behind when compared to the US dollar. The Indian Rupee (INR), another representative from Asia, currently has more than INR 34,000 billion in banknotes in circulation, worth just $ 469 billion.

Bitcoin currently has 18.66 million units in circulation, each worth about $ 59,000 at press time. At the current market cap, Bitcoin has a money supply worth more than 170 different fiat currencies.

BTC transactions are on the rise, but not as exponential as the market cap. Currently, Bitcoin transactions averaged around 0.5 billion per day, very small. This figure is only 0.02% against the EUR and 0.009% against the USD. The average daily transaction value for USD is 5,800 billion and EUR is 2,100 billion.

Hence, the path to Bitcoin’s number 1 global currency is entirely viable. With a current market cap of $ 1,100 billion, Bitcoin will need an 82% increase in price to fulfill its mission when measured in terms of circulation value.

CHK aggregated

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