( Decrypt reached out to Deutsche Bank analysts for an explanation of why the bank left the Chinese yuan out of this research report.) Where Bitcoin fits into the world currency rankings This would place CNY third and Bitcoin fourth. That said, based on publicly available estimates, there may be around 9.19 trillion CNY in circulation, with a circulation value of $1.41 trillion. That's likely because China maintains strict capital controls that make the yuan not freely convertible, and the spread between the onshore and offshore yuan has been widening, all of which makes it far from straightforward to arrive at circulation volume for the yuan in this context. ![]() Do you notice any major currency missing? The chart, and report, entirely omits the Chinese yuan (CNY). As DB declares, "Bitcoin is here to stay and its value will remain volatile."īut there's another big caveat with DB's chart above. Just the amount of cash/coins printed appears small, as it does not include all the assets held in USD in deposits at banks."Īnd of course, Bitcoin's market cap is dependent on its current price, which fluctuates constantly. Still, DB is roughly estimating where Bitcoin sits in the world currency rankings by comparing its coin market cap to the value of total banknotes in circulation for the fiat currencies.ĭB warns in a footnote that these rankings "would change dramatically if we looked at monetary base, or M1 or M2, to define the universe of USD in existence. In early 2019, Bitcoin represented 'only' 3% of the US dollars in circulation, but in February 2021 it surged beyond 40% of the US dollars in circulation."īitcoin and fiat currencies aren't an apples-to-apples comparison, for a number of reasons that DB acknowledges in its note, including that Bitcoin has a fixed supply (capped at 21 million coins), while government fiat currencies do not. This is mainly due to the vast increase in Bitcoin’s value recently. 3 world currency and calls it "too important to ignore," in a new research note this week entitled, "The Future of Payments: Series 2: Part III: Bitcoins: Can The Tinkerbell Effect Become a Self-Fulfilling Prophecy?"īut the report has serious caveats and omissions.ĭeutsche Bank writes, "In terms of total currency in circulation, Bitcoin is the third-largest in the world, after the US dollar and the euro. ![]() In that time, Bitcoin's market capitalization-its circulation supply multiplied by the value of each unit-has skyrocketed to above $1 trillion, making Bitcoin not only the largest cryptocurrency, but also larger than most government fiat currencies. Since its creation just over a decade ago, Bitcoin (BTC) has seen its price climb from practically nothing up to its current value of over $59,000.
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