How much of all money is in Bitcoin?

How much is Bitcoin worth?

On September 10, 2023, 1 BTC was worth approximately $25,758. There were more than 19.48 million bitcoins in circulation, giving it a total value of more than $500 billion. This is far less than in 2021, when its value exceeded $64,000 – bringing its total value at that time to approximately $1.2 trillion.

Bitcoin and the money supply

To get an idea of ​​how much money there is in bitcoins in the world, we need to determine the total amount of money. It turns out this isn’t the easiest question to answer. Such a calculation could take into account dozens of categories of wealth, including banknotes, precious metals, money market accounts and debt. Fortunately, Credit Suisse has already done the work: the bank calculated total global wealth at the end of 2022 at $454.4 trillion.

This means that Bitcoin amounts to approximately 0.11% of the estimated total value of global wealth.

Bitcoin vs gold

How Does Bitcoin Compare to Gold? After all, some people still consider gold to be the safest safe haven asset. It is certainly the standard against which other currencies should be compared. The US Geological Survey estimates that approximately 244,000 tons of gold had been mined as of September 10, 2023. There are 32,000 ounces of gold in one ton, and the price of gold per ounce was approximately $1,919.08 when the market closed on September 8, 2023. So the total value of all gold can be estimated as:

(244,000 tons of gold x 32,000 ounces per ton) x $1,919.08 per ounce = $14.98 trillion.

In total, the value of all Bitcoin was approximately 3.4% of the value of all above-ground gold reserves.

Other cryptocurrencies

Bitcoin is the largest and best-known cryptocurrency in the global economy. However, it is far from the only one. If we combine Bitcoin with Litecoin, Monero, Ethereum and all other major cryptocurrencies, the total value comes to approximately $1.04 trillion (as of September 10, 2023). That was about 0.23% of the value of all money.

It comes down to

Bitcoin is a cryptocurrency, one of thousands of new digital or virtual currencies available worldwide. It can be used as a store of value, as a way to exchange value, or as a speculative investment. Its value changes daily, sometimes tens of dollars or more. It is a volatile asset whose market capitalization and percentage of total money changes almost daily.

The comments, opinions and analyzes expressed on Investopedia are online for informational purposes. Please read our warranty and liability disclaimer for more information. As of the date this article was written, the author does not own any bitcoin.