Putting the value of Bitcoin in perspective

The total money amount in the world is $84 trillion - money in the bank, physical coins and notes. The total global money supply (physical money) is only $31 trillion.

Currently, all the bitcoin in the world is worth $41 billion. To grasp it, think of it as one Larry Page of Google – $41 billion happens to be his net worth. Bill Gates is worth $86 billion which is the combined value of Larry Page and Bitcoin.

What about the Altcoins? The sum of the total volume of virtual money floating around the internet is about $100 billion. That is about the GDP of Morocco – the 60th-largest economy in the world.

The current world supply of mined gold is around 171,300 metric tonnes. Its total value is about $8.2 trillion - about 200 times the total value of Bitcoin.

What is the problem with the Broad Money Supply?

'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.

Always remember money is fiduciary, which means it only has as much value as the trust we place in it.

21 June 2017

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