A question that many ask when talking about whether there is enough liquidity for Bitcoin and cryptocurrencies to continue growing.
Cash:
Physical bills and coins: ~9 trillion USD
Money in the financial system:
Bank deposits and cash: ~100 trillion USD
Large deposits, investment funds, and other liquid assets: ~150 trillion USD
The correct perspective: When you see figures of “over 1 quintillion” in “global financial assets”, that is no longer real money, but valuations (stocks, bonds, derivatives). The real circulating money is approximately 150 trillion USD.
Geographical distribution:
U.S.: nearly 62 trillion USD (~41% of the total)
China: almost 16 trillion USD (~10%)
Japan: nearly 6.5 trillion USD (~4%)
This explains why the dollar remains the world's reserve currency. And yes, there is enough money in circulation for the cryptocurrency markets to continue growing from where they are today.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
How much real money exists in the world?
A question that many ask when talking about whether there is enough liquidity for Bitcoin and cryptocurrencies to continue growing.
Cash:
Money in the financial system:
The correct perspective: When you see figures of “over 1 quintillion” in “global financial assets”, that is no longer real money, but valuations (stocks, bonds, derivatives). The real circulating money is approximately 150 trillion USD.
Geographical distribution:
This explains why the dollar remains the world's reserve currency. And yes, there is enough money in circulation for the cryptocurrency markets to continue growing from where they are today.