Bitcoin’s Market Cap May Surpass Canada’s Monetary Base When It Gets to $18K – CryptoGo!

Bitcoin’s Market Cap May Surpass Canada’s Monetary Base When It Gets to $18K

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Bitcoin’s market cap is increasing gradually,  quickly surpassing the monetary base of many national currencies such as Sweden, Norway, Russia, Australia and South Korea. The recent increase in market capitalization shows that the Canadian Dollar might be next in line.

When Bitcoin surpassed the $14,000 level, its market capitalization surpassed the Russian ruble’s monetary base. The measure includes both physical currency and bank reserves that are held by a country’s central bank.

Comparing BTC to Different Currencies

This Crypto Voices chart compares gold, silver, Bitcoin, and different country’s monetary bases. The chart shows that the U.S has a $263K global monetary base. This number is gotten by dividing the $4.9 trillion physical notes, coins and bank deposits at the federal reserve by the current 18.5 million outstanding BTC.

Although Bitcoin is increasing in value and market capitalization, surpassing some monetary bases seems like a hard tackle. Bitcoin’s price has to surpass $263,000 for its market capitalization to match the U.S base money figure. The figure seems like an impossibility but the digital currency has surpassed some other giant currencies like the Taiwan Dollar, Swedish Krona and Australian Dollar.

The economist behind Crypto Voices, Fernando Ulrich, said that the top 30 base money competitors cover 98% of the GDP. Some of the top 113 currencies peg their currencies to the U.S. dollar apart from the Euro which is used by many countries.

Researchers at Crypto Voice also said that the money monopoly works for Central Banks and their governments. Because fiat is virtually costless, it has revealed to be almost unconstrained by gold market value. They also said that if and when bitcoin becomes large enough to be on these charts or be held by central banks, then we can have an idea as to what bitcoin ‘costs’ central banks.

According to these researchers, there is no pressure to seek a new gold standard or something similar since central banks and governments have the ability to print money regardless of their gold holdings. Since inflation depreciates fiat currencies gradually, bitcoin has been able to surpass different currencies as they succumbed to excessive printing. 2020 has recorded the most extensive global base money expansion ever.

Another Crypto Voices chart show that the global money supply increased by $5.5 trillion in 2020, a 28% expansion. However, bitcoin has reduced its issuing by 50%.

Eyes are now on Bitcoin price to see whether it will surpass the Canadian dollar’s base money. Currently the base money stands at $335 billion which means that BTC will surpass it when it hits $18,000.

Image by cryptostock from Pixabay

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Bitcoin’s Market Cap May Surpass Canada’s Monetary Base When It Gets to $18K