Bitcoin: The Digital Gold Standard?
Comparing Cryptocurrency to Global Wealth
To understand Bitcoin’s share of the global money supply, first, the total amount of worldwide wealth must be established. This calculation is complex, involving numerous categories such as debt, commodities, currency, and equities. However, Credit Suisse has already provided a comprehensive estimate. At the close of 2022, they calculated global wealth to be around $454.4 trillion.
Should we assume consistent growth throughout 2023, global wealth would approximate $469.8 trillion. Consequently, Bitcoin would represent a modest 0.3% of this cumulative wealth value.
Bitcoin in Numbers
On April 10, 2024, Bitcoin’s individual value exceeded $70,000, with a specific rate of $70,665. At this time, there were over 19.68 million bitcoins in circulation, summing up to a market capitalization of more than $1.39 trillion. The contrast to the preceding year is pronounced: there were approximately 19.35 million bitcoins circulating, accompanied by a market cap of $472 billion.
In the context of the world’s money, Bitcoin’s total value was a mere 0.3%. Remarkably, this digital currency held just 7.6% of the total value of the world’s gold reserves. When considering all cryptocurrencies combined, they accounted for about 0.56% of global money.
Gold and Its Timeless Value
? Despite Bitcoin’s rise, gold remains perceived as a steadfast economic benchmark. According to the U.S. Geological Survey, approximately 244,000 tons of gold have been unearthed. A ton comprises 32,000 ounces, with an ounce valued at about $2,334.90 as of April 10, 2024. This situates gold’s total worth at:
(244,000 tons of gold x 32,000 ounces per ton) x $2,334.90 per ounce = $18.23 trillion.
Thus, Bitcoin’s worth, relative to above-ground gold reserves, is about 7.6%.
The Cryptocurrency Landscape
Bitcoin is undoubtedly the most prominent name in the cryptocurrency domain. Yet, it is merely a slice of this digital financial scene. Combined with other cryptocurrencies, Bitcoin’s share of all money drops to a lesser-than-expected figure. As of April 10, 2024, Bitcoin’s value compared to total world money was 0.3%.
Should You Invest $100 in Bitcoin?
Bitcoin represents just one of the myriad digital currencies in today’s market, utilized for value storage, exchange, or speculative ventures. Its value is notably volatile, often shifting by hundreds of dollars in a day, thus affecting its global capital investment share.
Is putting $100 into Bitcoin worthwhile? That largely hinges on your investment strategy, risk tolerance, and interest in market trends. With one Bitcoin valued at $70,665 on April 10, 2024, following significant jumps in precedent years, future value changes are unpredictable.
The perspectives shared herein are purely informational. For further guidance, check our resources. Note that at article publishing, the author held no Bitcoin investments.
You may also like
