Monday, December 5, 2022

Bitcoin Is the 32nd Most Used Currency in the World

Bitcoin Is the 32nd Most Used Currency in the World

Bitcoin continues to break records — not just among digital assets, but against the world’s government-back national currencies. According to one index, BTC now ranks globally as the 32nd most-circulated currency, beating even the South African rand and Singapore dollar.

Also read: TREZOR Devices Will Support All Forked Coins, Says SatoshiLabs

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Hacking the CIA’s Currency List

Jameson Lopp, an engineer at multisig wallet provider BitGo, built a copy of the global “M1 index” that includes Bitcoin as if it were a national fiat currency.

The M1 index is a standard of measurement to calculate a country’s money supply. This comprises physical money, demand deposits and checking accounts. The “copy” of the metrics that Lopp created was mainly to find where would Bitcoin stand among global currencies.

Don’t be alarmed by the CIA logo that appears on Lopp’s site, which updates in real time. It’s a clone of the intelligence agency’s World Factbook site on currencies, which compares M1 with various authorities using them. The description says:

“Stock of money compares ‘M1’ which is the total quantity of currency in circulation (notes and coins) plus demand deposits denominated in the national currency, held by nonbank financial institutions, state and local governments, nonfinancial public enterprises, and the private sector of the economy. The national currency units have been converted to US dollars at the closing exchange rate on the date of the information.”

Surprisingly, bitcoin ranked 32nd — making it one of the most-used currencies. It is ahead of many popular currencies such as South African rand, British pound sterling, and many others.

Bitcoin Against Other Global Currencies

Currency Cash IMF SDR basketChina ranks at the top of the M1 metrics with a $7 trillion (USD-equivalent) market valuation — followed by the European Union, Japan, and the United States. According to Lopp’s metrics Bitcoin’s circulation stands at $122 billion USD. The South African rand is just below it, at $117 billion.

For now, the cryptocurrency is holding its 32nd position as per Lopp’s M1 metrics. However, with more developments in the cryptocurrency industry, maybe the day isn’t far when it enters the top 20 most globally valuable currencies.

Then there’s the deeper question: how many of those world fiat currencies will even exist in 50 years? Time will tell.

Does Bitcoin have what it takes to be a major world currency? Let’s hear your thoughts.

Images via Pixabay

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