Bitcoin Has Barely Reached 1% of its Potential: Expert Blog

Unlike other cryptocurrencies that may have more sophisticated uses, like smart contracts for Ethereum, Bitcoin’s main uses are being a store of value and a medium of exchange. Its competitors are therefore the established main fiat currencies (US Dollar, Euro, Yen) and Gold. If the Bitcoin price already assumed massive adoption, the market capitalization of all Bitcoins should be close to that of the US Dollar and Gold, right? It turns out that nothing could be further from reality. While the market capitalization of Bitcoin is currently $90 bln, the money supply of the US Dollar, i.e. M2, cash, deposits and money market funds, is $12,500 bln while the value of all the gold ever mined is close to $8,000 bln. This means that Bitcoin is only worth around 1% of the value of its two main competitors.

The head of the IMF said two weeks ago to a room full of Central Bankers that they should not “dismiss” cryptocurrencies as they may very well give Central Banks “a run for their money”. If this is indeed the case, then forget the price of one Bitcoin, the number that everyone will be quoting very soon will be the price of one Satoshi.

Full story and image source credit: https://cointelegraph.com/news/bitcoin-has-barely-reached-1-of-its-potential-expert-blog