Do you still think bitcoin is a fad? Here is a news flash for you. At $ 8,940, it is larger than Russia’s monetary base. This makes Bitcoin the eighth largest currency in the world. And the price continues to rise …
Which countries have the largest M.onetary base in the world?
The answer might surprise you. Check out the table below from Crypto Voices. You will see that gold, at nearly $ 8 trillion, is still by far the largest monetary system in the world. Bitcoin is on its heels, however.
However, when it comes to a country’s monetary base, it is measured in terms of the grand total Amount of currency in circulation or in commercial deposits with the central bank, not in its gold reserves.
With $ 25 trillion in debt, it’s no surprise that while the US is the largest economy in the world, it lags behind Japan, China and the euro zone in terms of base money.
You may be wondering why oil rich countries like Saudi Arabia and the United Arab Emirates are not included in this report. Is it because most of their wealth is held in oil rather than fiat? Crypto Voices says:
I don’t know their methods, but Saudi Arabia and Denmark, for example, are pegged currencies, so their base money is USD and EUR respectively and should not be counted. The correct economic comparison is the central bank’s monetary base value of each currency.
Bitcoin monetary system now 8th largest world currency
If you don’t count gold and silver, Bitcoin is now the eighth largest currency in the world. It comes in 9th place after the two precious metals.
How important is that Well, with a market cap currently at $ 162 billion and some analysts predicting BTC value of over $ 40,000 by the end of 2019 after just 10 years of creation, this is quite a big deal indeed.
Bitcoin is already larger than the base money of Russia, South Korea, Brazil, Canada and Norway. As the adoption of cryptocurrencies increases globally, it won’t be long before it catches up and overtakes the monetary base of India, Switzerland, the UK and, yes, the United States.
Will Bitcoin become the world’s largest monetary base? Add your thoughts below!
Images via Shutterstock, Crypto Voices
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