The Cryptocurrency Market is Teeny-Weeny!
The gold and silver markets are tiny and the cryptocurrency market is microscopic when comparing these assets to the global financial market. With a value of $7.51 trillion the world's gold is only 2.5% of global financial assets. Cryptocurrencies make up a mere 0.03%, and require decades of additional innovation before having any sizable sway within the global financial system. In comparison an average of $5.1 trillion of Forex is traded every single day. We can begin to grasp the notion that over the course of those decades the majority of present-day cryptocurrencies will certainly fail to the competitiveness of those emerging with new block-chain technology.
If you feel like you may have missed the cryptocurrency take-off you are entirely delusional. However, as with junior gold mining companies, to best your odds I would suggest you immerse yourself in research. Find and acquire a handful of currencies with the utmost advanced blockchain technology, highest adoption potential, and a devoted team. Plunk a small position in those which may have the ability to become the next front-runner(Bitcoin) in five to ten years time.
Click here for a larger image.
In the United States bonds have endured a 30 year bull market, and throughout the world central banks are still artificially suppressing interest rates. As the Fed continues raising nominal interest rates, and begins to unwind its balance-sheet, starting with $600 billion in the first 18 months, there is a slim chance the United States' portion of the global bond bubble ruptures. This liquidity would prospectively flood the precious metals sector. Cryptocurrencies will hypothetically benefit as well, but it still remains uncertain would could transpire in a global freakout. Are cryptocurrencies a safe-haven or a speculation?
I leave you with this: As a crypto trader, and, or gold trader, how small do you feel?
Sources:
- http://siblisresearch.com/data/total-market-cap-sp-500/
- http://www.marketwatch.com/story/currency-trading-volume-falls-for-first-time-in-15-years-2016-09-01
- https://www.bloomberg.com/news/articles/2016-06-26/the-100-trillion-bond-market-s-got-bigger-concerns-than-brexit
- http://etfdb.com
- http://www.visualcapitalist.com/all-of-the-worlds-stock-exchanges-by-size/
- http://www.businessinsider.com/global-financial-assets-2015-2?IR=T
- http://onlygold.com/Info/All-The-Gold-In-The-World.asp
- Federal Reserve Bank of St. Louis
- USDebtClock.org
Please checkout my recent post: A Chart Every Goldbug should Understand and Every Cryptobug should Wish to Change
I'm new to Steemit if you like what I post hmu and/or follow along @finkavenue!
Nice article. This is what I try to keep in mind every time I put a bit more money into cryptos. Just the other day I was trying to figure out how many Norwegian Kroners are out there, just as a fun comparison. I think I found that current M2 money supply (the right one?) is 2,081,927 Million. But this means about $247 trillion. Can that be right? What is the 3.08 trillion monetary base on that chart saying? I think I'm doing something wrong.
The monetary base I refer to here is the St. Louis Adjusted Monetary Base.
From the Federal Reserve's database:
"US M1 includes funds that are readily accessible for spending. M1 consists of: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler's checks of nonbank issuers; (3) demand deposits; and (4) other checkable deposits (OCDs), which consist primarily of negotiable order of withdrawal (NOW) accounts at depository institutions and credit union share draft accounts. Seasonally adjusted M1 is calculated by summing currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately."
"US M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus: (1) savings deposits (which include money market deposit accounts, or MMDAs); (2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs). Seasonally adjusted M2 is computed by summing savings deposits, small-denomination time deposits, and retail MMMFs, each seasonally adjusted separately, and adding this result to seasonally adjusted M1."
US M1 + US M2 ≈ Discontinued US M3
US MZM = US M2 - "small-denomination time deposits plus institutional money funds."
Norway M1
Norway M2
Good info indeed, thanks.
Also See my blog post for a link to collect free crypto, a one time opportunity.
Success
Thanks! This one?
I saw a similar chart the other day showing this - it's good info - thanks for the post!
Thanks, the sky and technology are the limits!
Could it het any simpler?
BTFD!!!
haha!
Of all money in the world, only a drop has just yet dripped into cryptocurrency. I expect more drops (leading to a waterfall, eventually).
Prepare for the flood! :D
Good advise, I should really buy some crypto currency. I got turn off from bitcoin because it seemed like it just jumped up too high and may be topped out.
Yeah it's gotten very expensive which means doing more research to find those coins with potential.
However I do wish it had a supply and value figure of the physical silver market too