Is BTC the ninth largest "currency" in the world?
At a price of $8,940, the market value of Bitcoin will exceed the Korean currency base (preparation currency). The current BTC offer is $9,240, which makes Bitcoin enough to rank ninth compared to many French coins. If we follow Twitter CEO Jack Dorsey's positioning of the Bitcoin Internet's native currency, we can even call it the ninth largest currency in the world. With the rising price of BTC in the future, Bitcoin is expected to continuously improve its ranking.
Which country has the largest monetary base in the world?
The answer may surprise you. According to data compiled by Crypto Voices, gold is still the world's largest monetary system, with a total supply of nearly $8 trillion. However, "Digital Gold" Bitcoin is also trying to catch up.
So, what is the monetary base? According to Wikipedia's explanation, it refers to the number of plans issued by the central bank and the total amount of purchases of overseas Chinese. Expressed in a formula: currency base = currency in circulation + reserve. Therefore, a country's monetary base is not measured by its gold reserves.
Source: Crypto Voices
Currency base = net government debt assets + net foreign financial assets + credits to commercial banks + net assets. Since the US government has a debt of more than $25 trillion , although the United States is the world's largest economy, the United States ranks fourth in terms of monetary base, behind Japan, China, and the euro zone.
You may wonder why oil-rich countries like Saudi Arabia and the United Arab Emirates do not appear in this report. This is because most of their wealth is oil rather than legal currency? Crypto Voices said:
“Since Saudi Arabia and Denmark are anchoring currencies, their base currencies are the US dollar and the euro, respectively, and should not be counted. The correct comparison method is to compare the monetary base value of the central bank of each currency.”
The Bitcoin currency system is now the ninth largest currency in the world
If you don't calculate gold and silver, Bitcoin is now the ninth largest currency in the world. It ranks 10th after the two precious metals (the current market value is close to the Russian currency base).
How important is this? The market value of BTC is currently $164.9 billion, and some analysts predict that the value of BTC will exceed $40,000 by the end of 2019. By then, the market value may exceed $700 billion, which is expected to surpass the UK and become the fifth largest currency. Bitcoin has only been in existence for 10 years since its birth.