In the continuation of discussion started by @fyrstikken, I would like to expand the topic to whole Cryptocurrency Market.
I 'll make a light calculation, in order to have an idea How high world Crypto Market can fly. My calculation will be based on Money Liquidity Pyramid and visualization below.
What is Liquidity Pyramid, you can read here. Say a few words it represents world money supply by financial risks.
We are only interested in liquid assets only:
- bank money - $50 TRILLION
- base money - $28 TRILLION
For reference:
Bank money (or demand deposits) - funds held in demand deposit accounts in commercial banks. These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country. Simply put, these would be funds like those held in a checking account.
Base monetary (monetary base, reserve money, central bank money,.. etc) in a country is defined as the portion of a commercial bank's reserves that consist of the commercial bank's accounts with its central bank plus the total currency circulating in the public, plus the currency, also known as vault cash, that is physically held in the bank's vault.
1 Billion Dollars = $1,000,000,000
1 Trillion Dollars = $1,000,000,000,000
To imagine the volumes of these assets I took infographic which demonstrate how many banknotes of One Hundred Dollars contain $28 T and $50T respectively in comparison with The Statue of Liberty and skyscrapers
Then I've measured the scale and added the giant pallet (size of a seven-story house) of money inverted to world cryptocurrency market.
As you know Total Cryptocurrency Market Cap is $114 BILLION by Coin Market Cap
Oh no! When I did infographics today 4-5 hours ago it was $111 B, but now it grew up to $114 B!!!
So cryptocurrency capitalization amount:
- ~0.4% of base money supply
- ~0.14% of total base money and bank money
I didn't take into account:
- private bussines and real estate bonds - $300 TRILLION
- all the Stocks and Corporate Bonds in the World - $116 TRILLION
- value of All the Government Bonds - $56 TRILLION
As you can see Crypto Market has the huge potential to grow at least by high liquidity assets. And I hope we are still at the very beginning of blockchain growth.
Thank you for reading. Just in case sorry my english if you found syntax errors ;)
Base images for infographic and some information taken from here
Great article and I love the illustration of market caps you created. I may be wrong but I think you got the trillion and billion mixed up when talking about crypto market cap.
Please correct me if I'm wrong on this, but shouldn't it read $114 Billion?
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@bruckdashel, yes you are definitely right! Thank you very much for your attention.
By these mistakes I wanted to check whether someone reads my articles carefully)
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hahaha! great response to that ;-)
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I am buying crypto like crazy!
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Yeah mate, I understand you))
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Do you know how much is in the internet companies now? Probably 1/4 of that for now.
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Internet companies belongs to area of private bussines bonds, so they are not high liquid assets.
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