Reported By: Bitcoinist.com
2020 will go down in history for various reasons. While the pandemic took center stage, the emergence of Bitcoin, stimulus money, and unprecedented fiat money printing have been critical themes economically.
The ballooning effect of national currencies printing fiat money to offset the impact of the pandemic, caused the global M1 money supply to expand exponentially. Despite this, however, Bitcoin’s rank in the total M1 money supply has risen substantially, from rank 34 to 13th place behind Taiwan, Switzerland, and Canada. Here’s why this figure is so important for the future of the first-ever cryptocurrency.
Bitcoin M1 Money Supply Nears Top Ten By Nation, US Dollar In Trouble
From the destruction of past pandemics and economic collapses, have come some of the greatest changes known to the human race. Often these major life events bring about the emergence of technologies that forever change the world.
The same could be happening in 2020, as the world has awoken to the fact that the government is mishandling monetary policy at the same time they’ve realized Bitcoin is the hardest form of money yet.
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Each new round of stimulus money has caused the M1 money supply globally to skyrocket. In the US alone in 2020 has grown its M1 money supply from 4 trillion to nearly 7 trillion.
Bitcoin's market cap has grown by $400 billion in 2020 alone | Source: CRYPTOCAP-BTC on TradingView.com
M1 money supply reflects all currency and coins in circulation, along with any overnight deposits. The US is the head honcho as its dollar remains the global reserve currency, but now that Bitcoin has jumped 21 total ranks in 2020 alone – even while other countries are printing money as well – shows that the cryptocurrency will soon be hot on the greenback’s tail.
Bitcoin rose from 34th to 13th position in terms of (2017 reported) M1 money supply during 2020. pic.twitter.com/2FuIJRwMRq
— Jameson Lopp (@lopp) December 30, 2020
Bitcoin is now ahead of The Netherlands, India, and Sweden, and is trailing closely behind Taiwan, Switzerland, and Canada. At one point, the Dutch guilder was a global reserve currency also but fell from grace as new superpowers emerged.
The US dollar is at its weakest point yet thanks to the pandemic, and it could lead to the currency being dethroned in the future. Until then, it is an arms race that Bitcoin has a real chance at winning, facing off against China, the US itself, and the rest of the global world of fiat.
Much of the talk about Bitcoin recently has been related to its market cap and comparing it to the likes of VISA and banks. But instead, crypto enthusiasts should be comparing Bitcoin to national currencies.
FEATURED IMAGE FROM DEPOSIT PHOTOS, CHARTS FROM TRADINGVIEW.COM