Bitcoin [BTC] made headlines recently with the value of the smallest unit of Bitcoin, Satoshi, recording greater values than the fiat currencies of Iran, Vietnam and Indonesia. After breaching the $9000 mark recently, Bitcoin marked another milestone after it became the 8th largest currency in the world, surpassing Russia.
The digital coin crossed Russia’s monetary base in the first quarter of 2019. With the bulls taking the crypto-market on a bullish ride, BTC’s value saw a surge in value and was priced at $9,300, at press time. The king coin had a market cap of $165.28 billion and continued on its winning streak, beginning in January 2019. This winning streak accelerated in April.
One of the major reasons behind BTC surpassing major economies is its monetary base value. The revelation was was made by @crypto_voices, who tweeted,
“Global Base Money UPDATE: @$8,940,
#bitcoin is larger than South Korea’s monetary base [2019 Q1 won value]. This means Bitcoin’s monetary system is now the *9th* largest currency in the world, #11 if you count gold & silver. Full update will follow in CV 2019 Q2 update.”
The graph above exhibits a stark comparison between the monetary base values of gold and major economies. Gold has maintained its position with a monetary base having a value of ~$8 trillion. Bitcoin had a monetary base with a value of $0.2 trillion, a value that had it overtake several leading economies. As the chart above suggests, Bitcoin’s monetary base is greater than South Korea, Australia, and Singapore, among other nations. It is almost level with the value of Russia’s monetary base.
As the digital coin saw a rise in crypto-adoption across the globe, big league organizations have also started diffusing their operations with BTC. Developments such as these have allowed a surge in the value of Bitcoin’s monetary base.
A monetary base may be defined as the total volume of a currency that is either in general circulation, in the hands of the public or in the commercial bank deposits held in the central bank’s reserves
@crypto_voices clarified further and tweeted,
“Don’t know their methodologies, but Saudi Arabia and Denmark, for example, are pegged currencies, so their base money is the USD and EUR, respectively, and shouldn’t be counted. The correct economic comparison is the monetary base value of each currency’s central bank.”
This is yet another development in a stellar year for Bitcoin [BTC]. The cryptocurrency was previously in the news for outperforming several traditional assets, including gold, oil and the S&P 500 index.
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