BTC Overshadows 170 Fiat Currencies, Becomes the 6th Largest Currency

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • With its current market capital, the cryptocurrency has displaced almost 170 other fiat currencies.
  • As of now the US Dollar has the largest circulation with $1.95 trillion worth Federal Reserve Banknotes and Coins.
  • Its is only behind the US Dollar, Euro, Chinese Yuan, Japanese Yen and the Indian Rupee. 

Back in 2009, the world’s first-ever cryptocurrency, Bitcoin was launched. BTC was a minuscule form of payment back then and people could only purchase a hamburger or a diet coke using thousands of them.

However, the scenario has changed and right now BTC has a value of over $10000. Bitcoin successfully entered the list of top 10 currencies and to be precise BTC has become the sixth largest currency in the world. With its current market capital, the cryptocurrency has displaced almost 170 other fiat currencies and is only behind the US Dollar, Euro, Chinese Yuan, Japanese Yen and the Indian Rupee. 

Rankings Based on Market Capital and the MO Supply of the Currencies

BTC’s market capitalization has reached the $200 billion which not only makes it the largest cryptocurrency to exist right now but also one of the largest currencies in the world. Although BTC ranks 6th in the list of largest currencies, it had a higher rank of 5 back in 2017. However, we must not ignore the fact the rankings are entirely based on market capitals and does not imply that BTC fits into fiat currency in any way. These rankings have been determined by comparing the market capitalization with the MO market supply of the respective currencies. MO is generally a measure of the entire value of the notes, coins, and other similar substitutes that can be converted to cash. MO is also sometimes referred to as ‘narrow money’. 

USD, EUR, CNY, JPY Only Fiat to Have Market Cap of $1 Trillion

The debate between BTC replacing the conventional fiat currencies has prevailed for a long time. Some people believe that cryptocurrencies threaten the existence of national currencies whereas some people attest that cryptocurrencies will always be considered a secondary method of payment no matter what. As of now the US Dollar has the largest circulation with $1.95 trillion worth Federal Reserve Banknotes and Coins. However, EUR which is a relatively new currency which came to operation in 2002. The USD, CNY, JPY, EUR are the only currencies to have a market capital reaching a trillion mark. 

Back in 2017, BTC achieved the market capital of $330 billion which made it the fifth largest currency in the world. However in the most recent rankings BTC has surpassed the Russian ruble by a very narrow mark. BTC’s current market capital is half of INR and one tenth of the USD. 

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