In a significant milestone for the world’s pioneer cryptocurrency, Bitcoin has asserted its position among the top 15 largest currencies globally, placing 13th in December, as reported by Bitcoin credit card company Bold. Remarkably, Bitcoin stands as the sole cryptocurrency within the top 20 currencies, dominated by sovereign central bank currencies.
Backing this claim, data from CEIC and blockchain intelligence company CoinGecko reveals that Bitcoin’s market capitalization reached $732.5 billion on November 19. This places Bitcoin in close competition with traditional currencies, trailing just behind India’s rupee, which held a money supply (M1) of $693.1 billion in November, according to CEIC data.
As of November, Bitcoin closely trailed the Swiss franc, which boasted a money supply (M1) of $749.1 billion in U.S. dollars, as reported by CEIC data. However, the dynamics shifted in December as Bitcoin’s market cap surged to $840 billion, surpassing the Swiss franc and inching closer to the South Korean won.
Interestingly, if Bitcoin were priced at $919,305 today, it would surpass the U.S. dollar’s M1 money supply of $18 trillion, positioning it as the largest global currency. Cryptocurrency investor Anthony Pompliano highlighted on CNBC’s Squawk Box that achieving half a million per coin would only require Bitcoin to match gold’s market cap, emphasizing its potential for further growth.
Despite Bitcoin’s rapid ascent, questions about cryptocurrencies’ classification as currencies persist. The American Association for the Advancement of Science recently addressed this query, suggesting that cryptocurrencies have not yet widely adopted their defining role as a medium of exchange.
Coinbase CEO Brian Armstrong, echoing sentiments in early December, dismissed Bitcoin as a threat to the U.S. dollar. Instead, he emphasized its role in “extending Western civilization” and safeguarding the U.S. and its allies from de-dollarization. The evolving role of Bitcoin in the global financial landscape continues to spark debates about its significance and future implications.
