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Bitcoin is now the fifth largest currency in the world


 Bitcoin is now the fifth largest currency in the world by total market cap

We previously discussed in Arab Bitcoin about Bitcoin's advancement to advanced positions compared to global fiat currencies, and with the recent rise, Bitcoin advanced more in the ranking and became the fifth in terms of total market value compared to fiat currencies.

With the recent rise in the value of bitcoin and the currency's price reaching more than 41 thousand dollars, the total market value of the currency increased, reaching almost 770 billion dollars.

Although bitcoin and fiat currencies are not completely equal in terms of how the value in circulation is calculated, we can roughly estimate Bitcoin's place in the global currency rankings by comparing its market value with the money supply “M0” of fiat currencies.

The "M0" number represents the total value of all banknotes, notes and other alternatives to cash that can be easily converted into cash.

The value of “M0” is also known as “tight money”.

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Bitcoin enters the race:

The US dollar is currently the largest fiat currency by supply distribution.

According to the US Federal Reserve, there are 1.95 trillion dollars worth of fiat currencies, more than three-quarters of which are in the $ 100 and $ 20 bills.

In second place is the euro (EUR), a relatively new currency that was first launched in 2002 and is now used in most parts of Europe and by most European Union member states.

Like the US Federal Reserve, the European Central Bank maintains an up-to-date reference for the amount of euro banknotes and banknotes it enters into circulation.

According to official statistics, there are just over 1.4 trillion euros in circulation as of the last update released in November 2020.

This has more than tripled since the euro was first launched, with the total value being mostly € 20 and € 50.

The Chinese yuan (CNY) is the third largest currency in the world.

According to TradingEconomics data, there are about 8.16 trillion RMB in circulation, with a value equivalent to $ 1.26 trillion.

The Japanese Yen (JPY) ranks fourth, as there are at least 112.7 trillion in fiat currencies and currencies from the Japanese yen as of the last update by the Bank of Japan, or nearly $ 1.1 trillion when measured against the dollar.

The US dollar, the euro, the Chinese yuan, and the Japanese yen are the only fiat currencies with a total capital of more than $ 1 trillion.

Immediately after them comes Bitcoin, which is getting closer and closer to the value of a trillion dollars, especially after entering the crypto market for its first trillion.

Bitcoin advanced to the fifth place on the account of several large fiat currencies such as the Indian Rupee (INR) which currently has over 33 trillion Indian rupees in circulation, with a value of more than $ 452 billion.

The thing that is considered a very strong feature of Bitcoin is that it surpasses most fiat currencies in terms of total supply, which does not exceed 18.6 million Bitcoin units, but in return, the unit value of it exceeds 40 thousand dollars.

Bitcoin will need an additional 200% growth to become the largest currency in the world, not only at the expense of digital currencies but also digital and fiat currencies.

Given that Bitcoin gained 305% in 2020 alone, that might not be a far-fetched possibility.