Bitcoin is becoming a force to be reckoned with in the global currency market as it’s already a part of the top 30 currencies. This sounds even more impressive when we take into consideration the fact that Bitcoin has only been around for a decade and it’s currently 50% down from its all-time high.
Bitcoin on the Macro Landscape
The graphic below reveals the M2 market supply of the largest currencies. This includes saving deposits, mutual funds as well as checking deposits and cash in circulation. The largest currency by M2 is, reportedly, the Chinese yuan with $28,011 billion, followed by the USD with 14,521 billion. Bitcoin has managed to get its name among the top 30 and is currently the 29th largest currency in the world.
Even though it has been on the map only for a decade, it’s market cap is above the Colombian Peso’s M2 currency supply. It’s probably safe to say that Bitcoin has managed to make its way into the macro-economic scene, despite its relatively short history.
Bitcoin is now part of the macro landscape. There should be no more debate about this fact. Top 30 largest world currencies by market cap and growing at the fastest rate of them all. Great chart. I will retweet every time btc moves up a notch in the rankings. pic.twitter.com/SKLiL0sy3U
— Dan Tapiero (@DTAPCAP) September 23, 2019
The tweet shows Bitcoin’s current market capitalization which is around $183 billion. Yet, it’s still worth noting that this is nowhere near its peak. In late December 2017, Bitcoin’s price was around $20,000 and its market cap was above $320 billion. In theory, that would place the cryptocurrency even higher on the chart.
Satoshi Correlation Against Other Currencies
Bitcoin’s price movement in recent weeks has been rather steady, even though in 2019 we saw an increase from $3800 in January to almost $14000 in June.
The current value of 1 Satoshi puts the smallest unit of Bitcoin above that of certain regional fiat currencies. As PlowBitcoin reported, 1 Satoshi is more valuable than:
- 1 Iranian rial
- 1 Vietnamese dong
- 1 Indonesian rupiah
- 1 Guinean franc
- 1 Sierra Leonean leone
- 1 Laotian Kip
- 1 Uzbekistani som
One Bitcoin consists of 100,000,000 Satoshi, meaning that 1 Satoshi is 0.00000001 BTC. Its value against the US dollar has been increasing steadily. The current price of Bitcoin is just beneath $10,000 and 1 Satoshi is worth $0.0001. Only 3 years ago, the same correlation showed the USD 20 times more valuable, when the BTC price was around $500.
Bitcoin’s rapid growth over the years has made the cryptocurrency a factor that can no longer be ignored. In fact, the steady decline of the purchasing power of the USD raises questions of whether one should keep its increasingly valuable Bitcoin while spending the decreasing dollar.