Five days ago bitcoin passed the British pound and became the 6th most circulated currency in the world.
But after continued explosion in value, bitcoin is now about to eclipse the Indian rupee which currently sits in 5th place.
Once bitcoin goes past US $15,000, many estimate it will surpass the rupee in circulated value.
This is giving me significant pause.
It’s difficult to comprehend the scale of this crypto revolution. Particularly the incredible speed that digital assets are growing.
Move Over Fiat
Bitcoin is not alone.
Cryptos are clearly moving up the ranks. For fiat, this could be a financial coup.
The Global Pool of Money
The four currencies that surpass bitcoin in circulation are the EUR, USD, JPY and CNY. They comprise nearly 75% of all circulating banknotes and coins.
Suffice to say, bitcoin still has a mountain to climb.
However the tipping point is near. Once the large institutional money starts to pour in — who knows how fast it will move.
And that money is already moving. Bitcoin futures are about to be launched in the US.
It is impossible to predict how this will affect the bitcoin price in the short term. However, it will certainly introduce more ‘whale’ investors into the market.
In 12 months’ time, it’s not inconceivable that bitcoin will surpass the US$1.59 trillion in circulation.
A digital currency that was created in 2009 could become the largest circulating currency in the world.
That feels incredibly weird to type.
But that is the reality of the new economy.
Junior Analyst, Money Morning
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