Bitcoin ushered in a new age of blockchain technology and digital currency after its introduction in 2009. With all of the buzz surrounding Bitcoin, you’d think it’d be all over the place. Is this really the case? What is the value of Bitcoin? How much of the world’s money is in bitcoins, and how much of it is in bitcoins? It is absolutely worth our time to figure it out, with the price of BTC at $54,752 as on November 26, 2021.
What Is the Value of Bitcoin?
We’ll start with the overall worth of Bitcoin because it’s the easiest portion. As of November 26, 2021, the total value of all bitcoins in circulation was above $1.03 trillion, according to CoinMarketCap. 1 According to Forbes, Jeff Bezos, the founder of Amazon (AMZN), is worth $205.7 billion. 2 Bitcoin’s market capitalization is now more than five times that of Bezos’.
On June 9, 2021, El Salvador made Bitcoin legal tender. This is the first time a country has done so. Any firm that accepts cryptocurrency can use it for any transaction. El Salvador’s major currency is still the US dollar. 3
The Money Supply and Bitcoin
To figure out how much of the world’s money is in bitcoins, we must first figure out how much money there is in total. As it turns out, answering this question isn’t easy. Hundreds of different types of wealth, such as banknotes, precious metals, money market accounts, and debt, might be factored into such a calculation. In May of 2020, the Money Project attempted this calculation and predicted $35.2 trillion in worldwide narrow money. 4
According to The Money Project’s research, Bitcoin is worth around 2.9 percent of the projected value of narrow money.
Market capitalization is a contentious metric, particularly when it comes to cryptocurrencies. Although it is a straightforward approach to determine an asset’s entire value, it is very susceptible to manipulation.
Gold vs. Bitcoin
How does Bitcoin stack up against gold? After all, some people still regard gold as the safest of safe-haven investments. It is, without a doubt, the gold standard against which all other currencies must be measured. Let’s start with the numbers from the World Gold Council. As of the end of 2019, they projected that 197,576 tonnes of gold had been extracted throughout history. 5 Because gold is mined at a rate of roughly 2,500 tonnes per year, we may fairly predict that there are around 202,291 tonnes of gold in existence as of November 26, 2021. One tonne of gold contains 32,150.7 troy ounces, and the price of gold per ounce is around $1,823 as of November 26, 2021. 6 As a result, we can calculate the total worth of all gold as follows:
$11.8 trillion = 202,291 tonnes of gold x 32,150.7 troy ounces per tonne x $1,823 per ounce
The overall value of all Bitcoin was around 9% of the total value of all gold.
Bitcoin is the world’s largest and most well-known cryptocurrency. It is, however, far from the only one. When Bitcoin, Litecoin, Monero, Ethereum, and all other major cryptocurrencies are added together, the total worth is over $2.48 trillion. 7 That’s around 7% of the total value of all the narrow money listed above.
Bitcoin and other cryptocurrencies are extremely volatile and illiquid, making them prone to price manipulation and slippage. Make sure you understand the dangers involved with virtual assets before you invest.
Frequently Asked Questions about Bitcoin’s Percentage of All Money
Bitcoin accounts for what percentage of all money?
The total market value of all extant bitcoins (market capitalization) was equivalent to 2.9 percent of the total value of the world’s narrow money supply as of November 26, 2021.
What is the value of all bitcoins combined?
The total market value of all bitcoins was above $1.03 trillion as of November 26, 2021.
What is the price of Bitcoin?
The price of bitcoin is extremely volatile and vulnerable to market swings. The global market price of a bitcoin was $54,572 on November 26, 2021.
What is the total amount of money in the world?
According to The Money Project, the total value of all the world’s narrow money (coins, currency, demand deposits, and other central bank assets) was $35.2 trillion as of May 27, 2020.
How much money is there in the United States?
The M1 Money Supply, or the total amount of money in the United States, was $12.8 trillion in 2020, according to the Federal Reserve Bank of St. Louis.