Bitcoin has done it again after over a decade of growth. The number one cryptocurrency has entered into the top three world currencies by market cap. It falls behind the USD and EUR. BTC now leads the JPY and INR.
Since BTC was developed, the price has gone up from almost nothing to $58,794 it trades at press time. Bitcoin market capitalization in the last ten years has skyrocketed to top $1 trillion, making it larger and more valuable than most government fiat currencies.
Deutsche Bank pointed out that BTC has become the No. 3 world currency by market cap in a research note published recently. The note is titled “The Future of Payments: Series 2: Part III: Bitcoins: Can The Tinkerbell Effect Become a Self-Fulfilling Prophecy?”
It is important to note that BTC and fiat cannot be directly compared to each other owing to their characteristic. However, they can be compared in terms of circulating value and roughly estimate where Bitcoin sits in the world currency rankings by comparing its market cap to the value of total banknotes in circulation for the fiat currencies.
Deutsche Bank writes, “In terms of total currency in circulation, BTC is the third-largest in the world, after the U.S. dollar and the euro. This is mainly due to the vast increase in Bitcoin’s value recently. In early 2019, Bitcoin represented ‘only’ 3% of the U.S. dollars in circulation, but in February 2021, it surged beyond 40% of the U.S. dollars in circulation.”
Its position as the world’s number 3 currency depends heavily on its current price, which is highly volatile and prone to change every minute.
Bitcoin place and value in top 3
The U.S. Dollars (USD) leads the pack of the world’s largest currency by circulating supply and market value. Its total value is $2 trillion, according to Deutsche Bank. $1.8 trillion worth of Federal Reserve notes and coins are in circulation.
Euro (EUR) comes second. According to Deutsche Bank, the currency which is spent throughout much of Europe and by most E.U. member states circulation value is at about $1.7 trillion.
Bitcoin follows both fiat currencies, with its market cap pegged at $1 trillion. Deutsche Bank notes: “BTC transactions are growing, but not as exponentially as its market cap. Currently, BTC transactions average about 0.5 billion per day, which is minor.