Just how important is Bitcoin’s global investment to TradFi?

TL;DR Breakdown

  • Investors have witnessed a rather lunatic craze around Bitcoin and the crypto industry that begs the question of how much global wealth is invested in BTC.
  •  Bitcoin wealth sits at around 0.11% of the estimated total global wealth worth.
  • September has witnessed historic lows as market sell-off intensifies.

Description

In the rapidly evolving landscape of financial markets, one term has become increasingly prevalent—Bitcoin. Once dismissed as a speculative bubble or a tool for illicit activity, Bitcoin has matured into a complex, multi-faceted asset that holds transformative potential for traditional financial systems, often referred to as “TradFi” or Traditional Finance.  On September 11, 2023, one … Read more

In the rapidly evolving landscape of financial markets, one term has become increasingly prevalent—Bitcoin. Once dismissed as a speculative bubble or a tool for illicit activity, Bitcoin has matured into a complex, multi-faceted asset that holds transformative potential for traditional financial systems, often referred to as “TradFi” or Traditional Finance. 

On September 11, 2023, one bitcoin was worth approximately $25,867 per coin. There were over 19,48 million bitcoins in circulation, valuing the leading crypto at over $500 billion. This is significantly less than in 2021, when its value surpassed $64,000, giving it a total value of approximately $1.2 trillion.

The investment of Bitcoin in global markets is not merely a trend but has become a significant economic force that challenges the paradigms of existing financial systems, calling for a rigorous evaluation of its impact on traditional investment strategies, risk management, and even regulatory policies. 

Bitcoin’s global market share

The inception of Bitcoin in 2009 as a reaction to the fragility and failures of centralized financial systems sparked a revolution that has incrementally gained legitimacy and acceptance. The conversation around BTC in current times, especially with the collapse of several banks, begs the curiosity to understand how much global wealth is in the BTC ecosystem.

As the market cap of Bitcoin continues to grow, exceeding that of some of the world’s most established companies and even countries’ GDP, its influence on traditional markets becomes increasingly consequential. 

The dialogue around Bitcoin’s role in global investment is no longer confined to tech-savvy millennials or risk-hungry traders; it has entered boardroom discussions and governmental policies. 

As this digital asset class becomes more integrated into standard portfolios, along with stocks, bonds, and other financial instruments, the question remains: just how critical is Bitcoin’s role in shaping the future of traditional financial systems globally? 

According to Binance, the live price of BTC sits at $25,867.40 per coin with a current market cap of 503.89B USD. BTC is up 0.44% in the last 24 hours with a circulating supply of 19.48M.

According to CoinGecko, the global crypto market cap today is $1.05 Trillion. This is a -2.45% change in the last 24 hours and a -5.44% change one year ago. As of today, BTC’s dominance sits at 46.86%.

How much money is in BTC?

The global economy’s worth can vary depending on the source and the specific time frame considered. The world economy is projected to have a gross domestic product (GDP) of $105 trillion by the end of 2023, a $5 trillion increase from the previous year, according to the International Monetary Fund’s (IMF) 2023 World Economic Outlook report.

This represents a 5.3% increase in nominal global GDP. In inflation-adjusted terms, that would be a 2.8% increase. To gain a sense of how much money is in BTC, we must first calculate the total quantity of money.  A calculation of this type could include dozens of different types of wealth, such as banknotes, precious metals, money market accounts, and loans. 

Fortunately, Credit Suisse has already done the research, estimating total global wealth at $454.4 trillion at the end of 2022. That puts Bitcoin at around 0.11% of the estimated total global wealth worth.

How does Bitcoin stack up against gold? After all, some still see gold as the safest of safe-haven assets. It is unquestionably the norm against which other currencies must be measured. As of September 10, 2023, the US Geological Survey predicts that around 244,000 tonnes of gold had been mined.

One ton contains 32,000 ounces of gold, and the price of gold per ounce was approximately $1,919.08 as of the market closing on September 8, 2023. The total value of all gold is estimated to be $14.98 trillion (244,000 tons of gold x 32,000 ounces each ton) x $1,919.08 per ounce.

The overall value of all Bitcoin was around 3.4% of the total value of all above-ground gold reserves. Bitcoin’s share of total money is far lower than you may think. So why is there so much craze around the crypto industry?

Bitcoin is currently on the verge of a bearish breach, with a small chance that the $25,000 support level will hold. On September 11, BTC broke out of its parallel range between $25,500 and $26,500, reaching a daily low of $24,950. 

A daily close below $24,750 threatens a drop to the sub-$20,000 range, but there’s a slight possibility that the bullish momentum could revive. The price action on global markets and the on-chain indicators approaching historical lows could provide purchasers with optimism that a positive trend could continue to develop. 

According to the most recent report from on-chain analytics firm Glassnode, the price decline of BTC over the past few weeks has caused several metrics to reach all-time lows.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Just how important is Bitcoin’s global investment to TradFi?

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月12日 09:05
Next 2023年9月12日 09:59

Related articles

  • India leads G20 in active discussions for global crypto framework

    TL;DR Breakdown Under India’s presidency, the G20 nations are actively discussing the creation of a global framework for regulating cryptocurrencies, with contributions from global organizations like the IMF, FSB, and OECD. Indian Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi have emphasized the need for a unified approach to regulating cryptocurrencies, describing them as both a “threat and an opportunity.” India has been a leading voice in these discussions since taking over the G20 presidency in the last quarter of 2022, and the country is also showing a rising interest in blockchain technology. Description The G20 countries, under India’s presidency, are actively discussing the creation of a global framework for regulating cryptocurrencies. Indian Finance Minister Nirmala Sitharaman confirmed the ongoing discussions during the Global Fintech Fest on September 5, emphasizing the need for a unified approach to this emerging asset class. India’s role in shaping global crypto policy India … Read more The G20 countries, under India’s presidency, are actively discussing the creation of a global framework for regulating cryptocurrencies. Indian Finance Minister Nirmala Sitharaman confirmed the ongoing discussions…

    Article 2023年9月6日
  • Celebrities pick digital art for NFT collection to benefit AIDS research

    TL;DR Breakdown A group of celebrities, including Kendall Jenner, Kate Moss, and J Balvin, will choose the NFT digital art that will be sold to raise money for the Foundation for AIDS Research. Content makers have until July 9 to send their work through Prospect 100 to be considered. The NFT collection will be sold later, and all the money made will go toward AIDS research. Description A group of well-known celebrities has joined forces in a ground-breaking initiative that combines digital art and philanthropy to choose and display a collection of NFTs (non-fungible tokens) to support AIDS research. Through this special collaboration, the worlds of activism, entertainment, and the arts come together to provide a platform that uses celebrities’ power to … Read more A group of well-known celebrities has joined forces in a ground-breaking initiative that combines digital art and philanthropy to choose and display a collection of NFTs (non-fungible tokens) to support AIDS research. Through this special collaboration, the worlds of activism, entertainment, and the arts come together to provide a platform that uses celebrities’ power to…

    Article 2023年6月30日
  • Binance Tax Made Easy: Generate Your Tax Reports in Minutes

    TL;DR Breakdown Binance Tax supports up to 100,000 transactions on the Binance platform. In the future, you will be able to import transactions from other wallets and blockchains into Binance Tax. Note that Binance Tax currently does not support transactions related to certain Binance products, such as Futures and NFTs. You can add these transactions manually or take them up elsewhere on your tax return. Currently, each user can generate a Capital Gain Report, Income Gain Report, or a report of all their transactions in the 2022 tax year. For many crypto users, filing taxes can be a confusing, cumbersome, and time-consuming procedure, and Binance Tax aims to eliminate this financial obstacle. If you’re struggling to remain on top of your crypto taxes or simply want to expedite the process, be sure to check out Binance Tax, our recently released crypto tax calculator.  Globally, crypto taxation regulations are constantly evolving. Binance recognizes that, as a result, many of the users, including seasoned traders, find submitting their taxes to be difficult and time-consuming. The Binance Tax tool aids you in keeping…

    Article 2023年6月1日
  • Celo announces transition to layer-2 network on Ethereum

    TL;DR Breakdown The Celo team has announced the transition from an independent blockchain to a layer-2 solution on Ethereum. The team promises enhanced scalability and interoperability. Description C Labs, the development team behind the Celo blockchain, has unveiled a proposal to transition from being an independent layer-1 blockchain to a layer-2 solution on Ethereum. The decision was announced on Twitter, following extensive research and discussions with members of both communities. The Celo team will release the proposal by July 22 A preliminary … Read more C Labs, the development team behind the Celo blockchain, has unveiled a proposal to transition from being an independent layer-1 blockchain to a layer-2 solution on Ethereum. The decision was announced on Twitter, following extensive research and discussions with members of both communities. The Celo team will release the proposal by July 22 A preliminary on-chain governance proposal, referred to as a “temperature check,” is expected to be released soon for the community to vote on, possibly as early as Saturday, July 22. Under the proposed migration plan, the platform would leverage Optimism’s OP Stack,…

    Article 2023年7月19日
  • China has a yuan problem – Will USD make a play?

    TL;DR Breakdown China’s central bank, the PBOC, is intervening in the weakening of the yuan, aiming to slow down its depreciation. The PBOC’s strategy could potentially backfire, with companies possibly redirecting their capital to offshore accounts due to the decline in dollar deposit rates. Several countries, including Brazil, Iran, and Saudi Arabia, are increasingly using the Chinese yuan over the U.S. dollar for cross-border transactions. Description China finds itself in the throes of a currency dilemma, as it grapples with the weakening yuan. With the rapid depreciation, it’s clear that the dragon is trying to tame its own tail. But in the backdrop of these convulsions, is the United States poised to seize the moment? Steering through currency headwinds It’s no … Read more China finds itself in the throes of a currency dilemma, as it grapples with the weakening yuan. With the rapid depreciation, it’s clear that the dragon is trying to tame its own tail. But in the backdrop of these convulsions, is the United States poised to seize the moment? Steering through currency headwinds It’s no secret…

    Article 2023年7月3日
TOP