Bitcoin market cap ($132 billion) isn’t something that should be shrugged off
Bitcoin $ 132 billion market cap is not something to be abandoned. It may be far different from 2017’s all-time highs, but that doesn’t mean it’s not playing in major tournaments. It occupies the 34th position on the list, below the United Arab Emirates, with M1 supply of 132 billion USD and higher than Turkey with $ 122 billion.
Bitcoin market cap should not be shrugged off
Jameson Lopp, Casa’s CTO, tweeted:
“During 2019 Bitcoin rose from 49th to 34th position in terms of the M1 money supply.”
— Jameson Lopp (@lopp) December 30, 2019
Bitcoin is one of the most widely discussed types of assets in world history. It’s often difficult to set Bitcoin’s true value in perspective because the world seems to be divided between those who believe it is the future of money, and those who consider it are nothing more than a Ponzi scheme.
Most critics of Bitcoin compare its current value to the highest level in December 2017, when the world’s largest cryptocurrency reached $ 20,000 and reached a market cap of nearly half a trillion dollars
Compared to the huge increase the coin saw in the last few months of 2017 when its current price fluctuated around $ 7,100, it seemed to be a faint shadow of its former glory.
However, instead of comparing it to its former self, there is a large community that sees Bitcoin through a different lens. They compare Bitcoin to the very things it set out to disrupt.
Lopp shared a screengrab from the Central Intelligence Agency (CIA) website, where 194 countries are ranked according to their M1 money supply. The CIA defines money supply M1 as the total amount of currency in circulation plus demand deposits in national currencies.
According to the list, the country on land with the most significant amount of money M1 is the European Union, with 8.77 trillion USD. China followed it with 7.94 trillion dollars and Japan with 6.42 trillion dollars. The United States ranked fourth with 3.62 trillion dollars.
Another thing worth noting is that compared to last year, Bitcoin has increased by 15 positions. This shows that its current bear market bears very little weight.
What is M1?
M1 is a supply of money, including physical currency and coin, demand deposits, travelers’ checks, other checkable deposits, and negotiable withdrawal accounts. M1 includes the most liquid portions of the money supply because it contains currencies and assets that can or can be quickly converted into cash. However, “near money” and “near, near money,” belonging to M2 and M3, cannot be converted into money quickly.
Money M1 is a necessary money supply of a country, used as a medium of exchange. M1, including demand deposits and checking accounts, is the most commonly used means of exchange using debit cards and ATMs. Of all components of the money supply, M1 is defined the most narrowly.
M1 does not involve financial assets, such as savings accounts and bonds. Money M1 is the money supply index most often used by economists to refer to the amount of money circulating in a country.
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