Bitcoin enters the top six currencies by cash in circulation

By the end of July, Bitcoin’s market capitalization surpassed $200 billion. By this metric, the leading cryptocurrency can rival most fiat currencies when evaluated by the volume of cash in circulation (the M0 aggregate [simple_tooltip content=”cash in national currency in circulation outside the banking system”]M0[/simple_tooltip]). The only currencies with higher figures are the dollar, euro, yen, yuan, and Indian rupee, Decrypt reports.

In 2017, when Bitcoin’s price approached $20,000, the cryptocurrency held the fifth position in this unofficial ranking.

The U.S. dollar remains the largest fiat currency by the size of its circulating supply. According to the Federal Reserve, there are $1.95 trillion in banknotes and coins in circulation, of which three-quarters are notes of $100 and $20.

Second place is held by the euro. Official statistics show that at the last update (July 2020) €1.38 trillion was in circulation. Since the currency’s introduction in 2002, the figure has more than tripled. Most of the cash in circulation consists of €20 and €50 notes.

In third place is the yuan. According to TradingEconomics, about ¥8 trillion in circulation (~$1.15 trillion). A similar figure for the fourth-placed yen stands at ¥106 trillion in notes and coins in circulation (just over $1 trillion). The fifth-largest currency by the M0 multiplier is the Indian rupee, at ₹31 trillion INR (about $425 billion).

Bitcoin currently ranks sixth. Its circulating supply stands at 18.48 million coins, each valued at about $10,800 at the time of writing. Thus, Bitcoin’s M0 is around $200 billion.

In his latest remarks, Federal Reserve Chair Jerome Powell stated a shift toward inflation-averaging targeting policy.

The crypto community viewed this as a signal of accelerating inflation, which could spur increased Bitcoin buying.

Earlier, Forklog published a special material dedicated to the impact of the coronavirus crisis on markets and Bitcoin’s status as a safe-haven asset.

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