Bitcoin has surged dramatically, with its price briefly exceeding $37,500 per coin.
If we treat Bitcoin as a traditional currency, its total market capitalization—calculated based on circulating supply and current price—stands at $693.8 billion.
How Does This Rank Globally?
Following the 2020 hyperinflationary monetary policies, Bitcoin’s market cap now rivals the Russian ruble’s circulation volume. Even when gold is included in the assessment, Bitcoin secures a position among the world’s top 10 currencies.
To contextualize Bitcoin’s valuation against fiat currencies, I analyzed the 2019 central bank balance sheets of 50 major economies. The findings confirmed Bitcoin’s entry into this elite group.
Key Methodology:
- Included fiat currencies (e.g., USD, EUR) and precious metals (gold/silver), historically used as money.
- Gold’s global stockpile: ~190,000 tons ($1,900/oz) → $11.6 trillion market cap.
- Silver’s stockpile: ~200,000 tons ($27/oz) → $170 billion market cap.
As of December 2020, the top 25 currencies by issuance volume (USD terms) are ranked below.
Government Inaction and Bitcoin’s Ascent
Most central banks remain oblivious to Bitcoin’s rise, yet its market cap has silently infiltrated the top 10. If this trend continues into 2021, Bitcoin will likely surpass:
- The British pound
- The Norwegian krone
By then, Bitcoin’s valuation would trail only gold, the euro, USD, yen, and RMB.
Historical Context:
- 2013: Bitcoin first overtook silver’s market cap—a milestone dismissed as overvaluation. Today, it exceeds Russia’s ruble.
- 500 years ago, Nicolaus Copernicus—the astronomer who revolutionized cosmology—warned:
“Coinage is gold or silver stamped to measure prices… It must uphold fixed standards, or chaos ensues. Among disasters that ruin kingdoms, currency devaluation is the most insidious—slowly eroding trust, visible only to the wisest.”
Copernicus served as Poland’s financial advisor and authored On the Debasement of Coinage. Similarly, Isaac Newton spent 30 years at England’s Mint, establishing the gold standard.
Yet, their insights pale against modern central banks’ unchecked money printing.
The Crisis of Monetary Faith
Contemporary civilization hinges on trust in currency value. Since 2008, central bank policies have eroded this faith—fueling Bitcoin’s birth (2009) and its 2020 rally.
FAQs:
Q: Could Bitcoin really overtake the GBP?
A: Yes—if current growth persists, it may surpass the pound’s circulation within months.
Q: Why compare Bitcoin to gold/silver?
A: Both are non-fiat stores of value with limited supplies, making them analogous.
Q: What drives Bitcoin’s demand amid inflation?
A: Investors hedge against fiat devaluation, viewing Bitcoin as digital gold.
👉 Discover how Bitcoin is reshaping finance
Four months ago, I predicted Bitcoin would hit $50K within two years—now, that seems conservative.
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