Uncategorized Bitcoin compared to all of the world's money

Bitcoin compared to all of the world’s money


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As you see on this head-spinning graph below,

the total
amount of money in the world is $84 trillion

. But
that includes money in the bank. In physical coins and notes, the
total global money supply is only $31 trillion. See the problem?
Hence the rise of Bitcoin and other

 Bitcoin is the cryptocurrency
that refuses to die. Its demise has been predicted numerous
times, and one expert

that its value is eighteen times more volatile than the
U.S. dollar. Yet the virtual money keeps going from strength to


Last year, Bitcoin became more
stable than gold
, and earlier this year, the price of a
Bitcoin surpassed
that of an ounce of gold for the first time. Currently,
all the bitcoin in the world is worth $41
. If that amount is hard to grasp, just think of
it as one Larry Page – because $41 billion also happens to be the
net worth of the guy who co-founded Google with Sergey Brin.

You’ll find both fortunes at the right side, and the lower end,
of this graph, which gives you an idea of all the money in
the world
. You and I don’t figure on it unless you’re Larry
Page. Or Bill Gates. The richest man in the world is
worth $86 billion, or the net worth of Larry Page and Bitcoin
– with enough change
to buy
the L.A. Lakers, the Toronto Maple Leafs, the Chicago
Cubs and the Solomon Islands (not a sports team, but an
entire country).

Bitcoin is the Uber of cryptocurrencies: the biggest, baddest and
best-known, but not the only
. Add it up to Litecoin, Monero and all the others, and
the total volume of virtual money floating around the
, out of the reach of governments and banks,
is a whopping $100 billion. That is about as
much as the current GDP of Morocco – the 60th-largest
economy in the world.

The monetary value of tech giants like Amazon ($402 billion) and
(Apple $730 billion) is equivalent to the GDP of much bigger
economies (Nigeria and the Netherlands, respectively). In fact,
you would only need a little more than two Apples to
equate the amount of actual money in dollar notes and coins in
circulation around the world today – $1.5 trillion.

Money, of course, is fiduciary, which means it only has
as much value as the trust we place in it. The same goes for
gold: it derives its value solely from its
rarity, combined with its desirability. The current world supply
of mined gold is around
171,300 metric
which could be molded into a cube with sides of about 68 feet
(20.7m). Its total value? Currently around $8.2 trillion. Or
about 200 times the total value of Bitcoin (or
Larry Page).

Just to give you an idea: unless you own at least $205 million
(i.e. 1/200th of $41 billion), the monetary distance between the
net value of Larry Page and the world’s entire supply of gold is
smaller than the distance between Mr. Page’s fortune and your
own. If your head is not spinning already, consider the amount of
narrow money that is held in banks and wallets, under
mattresses and in piggy-banks around the world: $31 trillion.
‘Narrow’ money is defined as physical money: the coins
and notes that used to be the standard form of currency before
the rise of more derivative forms of payment, such as checks and
electronic forms of money.

‘Broad’ money also includes the deposits in easily accessible
bank accounts that can be converted into cash relatively quickly.
The sum of money under this definition is $83.6 trillion. You
will have spotted a flaw in the system: if the amount of money
that can be easily converted into cash is almost three times the
volume of the actual worldwide supply of cash, we would
have a problem if we would all want to empty our accounts at the
same time. Or we could all buy shares. The total market value of
publicly traded shares at stock exchanges around the world is
$66.8 trillion. Not only is that a fabulously large amount of
money, it is also subject to the laws of supply and demand, and
highly fiduciary. A run towards or away from stocks would
thoroughly deregulate the global economy, and nothing more
dramatic than a minus sign in front of that amount would lead to
the collapse of global civilization.

Does that sound overly dramatic? If the see-sawing rise of
Bitcoin tells us anything, it is that people are losing their
trust in money, and other traditional measures of wealth. Let’s
talk again when the total value of all cryptocurrencies surpasses
that of the world’s supply of gold…

Get the latest Bitcoin price here.

Read the original article on Howmuch.net. Howmuch.net is a cost information site. Copyright 2017. Follow Howmuch.net on Twitter.

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