How big is bitcoin, really? are we in a bubble? or is this the beginning?

in #bitcoin7 years ago

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 billion. 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.

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Bitcoin is the Uber of cryptocurrencies: the biggest, baddest and best-known, but not the only one. Add it up to Litecoin, Monero and all the others, and the total volume of virtual money floating around the internet, 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.

'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.

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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...

As usual upvote, resteem and follow me @digdaga for more.

source: https://howmuch.net/articles/worlds-money-in-perspective

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Good post, I like the graph too.

UpVoted and followed.

Appreciate it, and glad you like it.

Really good post buddy, I'm holding :)

well that make two of us!

Bubble. Bitcoin is slowly losing dominance in the cryptocurrencies market. Altcoins are rising and will take over eventually.

Well i am prepared for both scenarios and i do hold both bitcoin and alts. and since this is a new economic movement it only makes sense that there will be many alts or projects that will succeed down the path!

Indeed, that's the wise thing to do, diversify.

out of curiosity, what are your favorite alts and projects? will tell you mine if you are interested.

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