As Bitcoin blasted through the $14,000 level its market capitalization surpassed the monetary base of the Russian ruble.
The above chart may seem complicated at first glance, but it simply compares gold, silver, Bitcoin, and the remaining global monetary bases.
In order for Bitcoin's market capitalization to match the U.S. base money figure, the price would need to surpass $263,000.
According to Fernando Ulrich, the economist behind Crypto Voices, the top 30 base money competitors cover 95% of GDP. Aside from the Euro covering many countries, some of the top 113 peg their currencies to the U.S. dollar.
"So far, the money monopoly 'works' for Central Banks, and for their governments. It's virtually costless: fiat has proven to be nearly 'unconstrained' by the market value of gold."
"As for #bitcoin, if and when it becomes large enough to be on that chart, and / or held by central banks, then and only then will we have any idea as to what bitcoin 'costs' central banks."
This caused Bitcoin to surpass a number of currencies as they succumbed to excessive printing.
2020 had the most extensive global base money expansion ever registered.
That's a 28% expansion, while Bitcoin has kept its halving calendar, cutting its issuing by 50%. The big question on the minds of investors is will Bitcoin's stock-to-flow model prevail? According to some critics, there are several flaws in the assumption that BTC will reach $100K and higher in 2021 and beyond.
As shown in the fiat base money supply chart, the Canadian dollar's base money stands at $335 billion which is equivalent to an $18,000 Bitcoin price.
$18K Bitcoin price, eh? BTC market cap may pass Canada's monetary base
Published on Nov 10, 2020
by Cointele | Published on Coinage
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