r/btc • u/dumble_hold_the_door Redditor for less than 60 days • 16h ago
Bitcoin now makes up 1.7% of all global money... that's actually insane when you think about it
Just saw this River analysis and had to share. Bitcoin hit 1.7% of global money supply when we peaked at $2.4T market cap earlier this month. They're counting all major fiat currencies ($112.9T) plus gold and other hard money ($25.1T) in that calculation.
We're sitting around $2.29T now so closer to 1.66%, but still... in 16 years we went from literally nothing to nearly 2% of ALL money on earth. That includes every dollar, euro, yen, pound, plus gold reserves.
The Fed stuff is interesting too:
Powell basically confirmed rate cuts are coming at Jackson Hole on Friday. Bitcoin jumped 2% right after his speech and hit $116,000. CME data shows 75% of investors expect a 25 basis point cut in September.
Here's what gets me though - central banks keep printing more fiat while Bitcoin's supply stays fixed. Every time they fire up the money printer, our slice of the pie gets bigger just by existing. We don't even have to do anything.
Gold and Bitcoin are basically eating the lunch of every fiat currency right now. The purchasing power destruction is real and people are waking up to it.
Pretty wild that something that started as a whitepaper is now competing with currencies that took centuries to establish. Makes you wonder what 5% or 10% looks like if this trend continues.
Anyone else think we're still early at under 2%? Or are we getting ahead of ourselves here?
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u/cryptodonnyy 16h ago
Correct, it makes up 1.7% of the M1 global money supply, the cash/ checking/ deposits side. But you’re forgetting M2 & M3 which include money market funds. However it is 0.75% of global money, which is still absolutely nuts.
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u/rangoldfishsparrow 16h ago
It makes no sense. But many things are actually detached from reality nowadays … so I am not surprised . World has gone nuts !
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u/neverpost4 15h ago
Wait til the day, Bitcoins are banned and declared worthless.
You say That's not possible?
It happened to gold before
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u/DangerHighVoltage111 15h ago
And that's why the p2p transaction part is so important and BTC got crippled in exactly this regard.
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u/Historical-Egg3243 11h ago
When was gold ever worthless
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u/neverpost4 11h ago
Executive Order 6102
- Forbade ownership of quantities of gold coin, bullion, and gold certificates worth in excess of $100 (about 5 troy ounces).
- Required all persons to deliver excess quantities of the above on or before May 1, 1933 in exchange for $20.67 per troy ounce;
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u/Historical-Egg3243 11h ago
Gold prices jumped massively in 1933, that order must have been super bullish for gold
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u/anon1971wtf 3h ago
US govt robbed a lot of Americans and ensured that competing nations would stock up a lot of gold. It wasn't worthless it any point of the robbery
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u/anon1971wtf 3h ago edited 2h ago
Bitcoins are banned and declared worthless
Bitcoin forces itself upon nations, it's a disruptive technology. Read on how USD circulated in Soviet Union among its citizens. Such bans and declarations would only make a difference if one believes govt is God and follows it blindly. Big trend in US, unfortunately, but still plenty of people who would get into Bitcoin exactly if US govt would say that it's banned
And on the global stage it just would mean more opportunities for states that are competing with US
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u/Aware_Kaleidoscope86 9h ago
It is insane that there is still people in the world that trust their politicians with their fiat money..
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u/EquivalentStock2432 8h ago
How many bills and groceries did you pay for this month using BTC?
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u/Aware_Kaleidoscope86 7h ago
As in holding fiat. Crypto is paying for everything I do.
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u/Philderbeast 6h ago
So nothing, you have bought nothing using btc.
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u/anon1971wtf 2h ago
Not true. Just not directly. You can't pay with T-bills either, but T-bills make most sense if one wants to save using dollars, for some reason
Fiat is a proxy in case of paying in a store. Be that T-bills, gold or BTC
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u/Philderbeast 2h ago
your missing the point.
you can't use bitcoin as a currency, despite that it being what it was originally designed for and all the crypto enthusiasts keep acting like it.
even the headline of this post is nonsense, because its not money, just like stocks, or T-bills or any other investment is not money.
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u/anon1971wtf 2h ago edited 2h ago
your missing the point
No, you are. You are arguing with a strawman, instead of myself
I'm a crypto enthusiast, and I'm not acting like Bitcoin or any crypto for that matter is the best payments tool. I used to think so and I was mistaken
I think 16 years later after invention of Bitcoin weighing existing centralized and decentralized solutions to payments - centralized are better. Maybe even for the long-term
I think Bitcoin solved saving, and it's more than enough
designed for
Who cares? I care about what it does, what it's good for. Not about people's options, designer's included. We are discussing a ticking machine that exists in reality, not a concept
because its not money
Gold is good sound money despite majority of goods and services in the world not being directly priced in it. One may recieve a paycheck in local fiat, convert some to gold, wait 10 years and enjoy preserved purchasing power. Tens of millions of people do that, they are smarter with money than most. Same with bitcoins, for the same reason. A bit less people are doing that
What matters for money in the aspect of saving:
Stock-to-flow: new supply to all circulating
Stability of existing stock: durability, no counterfeit
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u/Philderbeast 2h ago
No, you are. You are arguing with a strawman
I am literally making a point based on the title of this thread being "Bitcoin now makes up 1.7% of all global money."
And the person who I replied to initially saying "It is insane that there is still people in the world that trust their politicians with their fiat money.."
Now of course if you want to try and take my comment out of the context it was made in, you could call it a strawman, but that would be rather stupid.
Crypto has proven it self to only be useful as an investment powered by speculation, and people have defiantly made lots of money on it, but to many people still think its going to some how replace fiat currencies, and that's never going to happen.
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u/anon1971wtf 2h ago edited 2h ago
Crypto has proven it self to only be useful as an investment powered by speculation
Nope, for me it's a proven better tool for saving than all others. Excellent for crossing borders as well
and people have defiantly made lots of money on it
From my point of view, it's just preservation of purchasing power, with some bubbles and bursts on top. BTC vs XAU log chart gives a good perspective
but to many people still think its going to some how replace fiat currencies, and that's never going to happen
Maybe. But fiat currencies of tomorrow may not look like dollars or euros at all. Reading on history of money it's unlikely that current form is here to stay for all time. Either way, currency aspect is a less interesting aspect of Bitcoin
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u/Philderbeast 1h ago
Nope, for me it's a proven better tool for saving than all others
you are not saving, you are buying an investment, the same as if you were buying stocks.
Maybe. But fiat currencies of tomorrow may not look like dollars or euros at all
its certainly not going to look like crypto, its already proven to be unsuitable for the task.
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u/Aware_Kaleidoscope86 6h ago
I have bought something with btc. But that is not why I hold it anyway.
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u/Ok_Oil_201 7h ago
I'm glad that absolutely zero politicians are influencing btc right now!!
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u/Aware_Kaleidoscope86 6h ago
They are... last year the Germans sold a lot, they are buying in El Salvador and trump gang is doing whatever they are doing..
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u/Ok-Blackberry-3534 2h ago
The Germans sold Bitcoin seized as criminal proceeds as per their law.
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u/Aware_Kaleidoscope86 2h ago
So seems like you agreed on my point then. There are lots of politicians that influence.
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u/Doublespeo 4h ago
It is insane that there is still people in the world that trust their politicians with their fiat money..
and the bitcoin core dev with the project
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u/backnarkle48 6h ago
The interest rate cut is baked into bitcoin’s price. That’s not gonna drive it higher. Over the past year, Bitcoin price has been news driven: ETF adoption, BTC reserve, GENIUS act, 401k approval. There not much more news expectation, so there’s little to drive prices higher. I’m bearish
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u/fajarsis02 4h ago
central banks keep printing more fiat while Bitcoin's supply stays fixed.
Circulating Bitcoin supply is dwindling...
https://cryptoquant.com/asset/btc/chart/exchange-flows/exchange-reserve
While Gold supply is increasing, especially with latest breakthrough.
https://www.youtube.com/watch?v=obHrkEDIUVs
So buy bitcoin and make sure you get it out of exchange into your cold wallet.
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u/Little_Home_4507 5h ago
BTC will fade and ETH will overcome it, we don’t need two different types of gold and BTC has no use case
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u/CashDragonX Redditor for less than 60 days 3h ago
Both BTC and ETH will fade. Bitcoin Cash (BCH) does everything they do but at scale and much cheaper.
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u/anon1971wtf 2h ago edited 2h ago
ETH got rid of its energy signature. In a case of contentious fork if I get two ETH chains I have no other option than to go to social media to choose who to trust
But with Bitcoin I have different amount of zeroes on either chain, and if I am a multibillion CEX, I have both the source of truth and plausible deniability for public instead of engaging in politics
ETH is no longer fundamentally secure. I allocate a bit in it - just as in the most distributed private money. Not a trustless open blockchain anymore, unlike Bitcoin
And then UTXO-model and restrictions of Bitcoin Script are better for the long-term money case - than account-model and Turing-completeness
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u/DangerHighVoltage111 15h ago
And all that while it isn't even money anymore :P
It does like how much transactions globally, 0.000001%?