Time for a sanity check.
With Bitcoin above $11 K USD (at least for now), market cap is $210 billion.
Let’s compare bitcoin with other world currencies:
1. The M1 supply of Canada’s currency was $777 billion USD in May 2019.
2. M1 supply of Singapore was $137.5 billion in the same month.
3. M1 supply of Japan, second-largest economy in the world: $7.42 trillion.
4. And finally, the biggest fish in the pond: The M1 supply of the United States of America is estimated to be $3.8 trillion dollars In June of 2019
(I found it interesting that Japan has a higher M1 money supply than the US)
If Bitcoin were to increase in value ten times from today, it would have a market cap of $1.85 trillion.
That is less than triple the money supply of Canada and less than half the money supply of the US.
But as there seems to be some inverse correlation between the price of China’s currency and bitcoin (As it declines, the price of bitcoin goes up), let’s look at the M1 supply of the yuan:
P.S. Quick note about the price of bitcoin this month. Historically, August has been very volatile. From August 2011 to 2018, here are the price fluctuations: -57%,4%,33%,-20%,-19%,-6%,81%,