{"id":119207,"date":"2018-10-01T12:00:02","date_gmt":"2018-10-01T11:00:02","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=119207"},"modified":"2018-09-25T12:48:05","modified_gmt":"2018-09-25T11:48:05","slug":"comparing-cryptocurrency-against-the-entire-worlds-wealth-in-one-graph","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2018\/10\/comparing-cryptocurrency-against-the-entire-worlds-wealth-in-one-graph\/","title":{"rendered":"Comparing Cryptocurrency against the Entire World\u2019s Wealth in One Graph"},"content":{"rendered":"<blockquote><p>17 Sep 2018 &#8211; <em>Given the 8-month long crypto bear market, lots of bitcoin naysayers are feeling smug right about now. From JPMorgan CEO<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/jpmorgan-ceo-jamie-dimon-returns-to-bitcoin-bashing-calls-cryptocurrency-a-scam\" > Jamie Dimon<\/a> to CNBC\u2019s Mad Money host<a target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2018\/08\/14\/cramer-the-tide-has-turned-against-bitcoin.html\" > Jim Cramer<\/a> and Nobel economist<a target=\"_blank\" href=\"https:\/\/www.ccn.com\/nobel-economist-naysayer-robert-shiller-calls-bitcoin-a-social-movement\/\" > Robert Shiller<\/a>, every media personality seems to think bitcoin\u2019s downward trend will continue. There\u2019s plenty of<a target=\"_blank\" href=\"https:\/\/www.coindesk.com\/when-capitulation-3-ways-bitcoins-bear-market-might-end\/\" > evidence<\/a> to suggest things will turnaround, but that\u2019s beside the point. Bitcoin in particular and the larger crypto-market in general are already substantial parts of the global economy.<\/em><\/p><\/blockquote>\n<p><a href=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2018\/09\/bitcoin-money-economy-currency.jpg\" ><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-119208\" src=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2018\/09\/bitcoin-money-economy-currency-1024x800.jpg\" alt=\"\" width=\"700\" height=\"547\" srcset=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2018\/09\/bitcoin-money-economy-currency-1024x800.jpg 1024w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2018\/09\/bitcoin-money-economy-currency-300x234.jpg 300w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2018\/09\/bitcoin-money-economy-currency-768x600.jpg 768w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2018\/09\/bitcoin-money-economy-currency.jpg 1600w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<blockquote><p>This graph is a follow-up from a<a target=\"_blank\" href=\"https:\/\/howmuch.net\/articles\/worlds-money-in-perspective\" > similar visualization<\/a> over a year ago, giving us a unique lens through which to make several different comparisons.<\/p><\/blockquote>\n<p>Let\u2019s start by moving from right to left. All of the world\u2019s bitcoin is now worth more than the personal fortune of Bill Gates, and nearly the same as Jeff Bezos. But look at the combined total value of all the cryptocurrencies in the world\u2014an eye popping $202B. That\u2019s more than double the market cap of<a target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/quote\/gs?ltr=1\" > Goldman Sachs<\/a>, no matter what the company\u2019s CEO<a target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2018\/06\/20\/bitcoin-is-not-for-me-goldman-sachs-ceo-lloyd-blankfein-says.html\" > Lloyd Blankfein<\/a> would have us believe.<\/p>\n<p>Bitcoin\u2019s total market capitalization has more than doubled from $41B to $112B in the past year. More to the point, lots of attention has been paid in the media to cryptocurrency market<a target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/francescoppola\/2018\/06\/01\/cryptocurrency-trader-says-the-market-is-manipulated\/#2f5cef5525cd\" > manipulation<\/a> and<a target=\"_blank\" href=\"https:\/\/howmuch.net\/articles\/biggest-crypto-hacks-scams\" > successful hacks<\/a>. But here\u2019s the rub: downturns are nothing new in the crypto world, as our<a target=\"_blank\" href=\"https:\/\/howmuch.net\/articles\/bitcoin-all-major-crashes\" > other research<\/a> has reported. In short, the value of cryptocurrencies floats up and crashes down, but at least over the last year and half, bitcoin has still seen a substantial net gain in value.<\/p>\n<p>The numbers behind our graph are incomprehensibly large. Here are a few ways to break things down:<\/p>\n<ul>\n<li>The entire market cap of Amazon is $858B bigger than bitcoin ($970B vs. $112B).<\/li>\n<li>The first trillion-dollar company, Apple, is worth $888B more than bitcoin ($1T vs. $112B).<\/li>\n<li>The value of the entire world\u2019s gold is over 70x more than bitcoin ($7.8T vs. $112B).<\/li>\n<li>All of the cryptocurrencies in existence are worth 0.59% of the world\u2019s physical money ($34.4T vs. $202B).<\/li>\n<li>Cryptocurrencies are even tinier compared to the world\u2019s stock markets at just 0.30% ($67.5T vs. $202B).<\/li>\n<li>And here\u2019s the ultimate comparison: \u00a0cryptocurrencies are the equivalent of only 0.23% of all the money in the world, broadly defined ($86.5T vs. $202B).<\/li>\n<\/ul>\n<p>Here\u2019s some additional context for these comparisons. Both Amazon and Apple are worth much more than the entire GDP of<a target=\"_blank\" href=\"https:\/\/data.worldbank.org\/indicator\/NY.GDP.MKTP.CD?locations=TR&amp;view=map&amp;year_high_desc=true\" > Turkey<\/a> ($851B). And here\u2019s the most interesting thing\u2014even as Amazon has amassed such an enormous value ($970B), Jeff Bezos has personally received the equivalent of 10% (or $112B). Add Apple and Amazon together, and you\u2019d have a conglomerate worth more than the entire value of USD in circulation ($1.5T).<\/p>\n<p>Is your head starting to spin yet? What if you tried to imagine the vale of the entire world\u2019s gold ($7.8T)? That\u2019s roughly 8 times the value of Apple, or like having the fortune worth 70 times that of Jeff Bezos. It\u2019s also hard to imagine all the world\u2019s physical money ($34.4T), defined as anything that can be used as a medium of exchange in the world. That\u2019s separate and distinct from all the stock markets\u2019 value ($67.5T), much less the theoretical value of money in the world ($86.5T), which include the funds people keep in their bank accounts. That means if every single person wanted to physically hold all their wealth, governments would need to physically print well more than double the entire monetary value they currently have in circulation.<\/p>\n<p>___________________________________________________<\/p>\n<p style=\"padding-left: 30px;\"><em>Raul Amoros is Content Director at Howmuch.net<\/em>.<\/p>\n<p><a target=\"_blank\" href=\"https:\/\/howmuch.net\/articles\/worlds-money-in-perspective-2018\" >Go to Original \u2013 howmuch.net<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What if you tried to imagine the vale of the entire world\u2019s gold ($7.8T)? It\u2019s also hard to imagine all the world\u2019s physical money ($34.4T), defined as anything that can be used as a medium of exchange in the world. That\u2019s separate and distinct from all the stock markets\u2019 value ($67.5T), much less the theoretical value of money in the world ($86.5T), which include the funds people keep in their bank accounts.<\/p>\n","protected":false},"author":4,"featured_media":119208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[146],"tags":[],"class_list":["post-119207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/119207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=119207"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/119207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media\/119208"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=119207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=119207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=119207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}