Bitcoin has made major milestones in its one decade of existence; the pioneer digital currency hit highs of $300 billion in market cap through this period. It is notable that the BTC market cap figure is close to or even higher than any leading financial institutions which have existed longer.
Financial Market analysts have since placed an importance on the BTC valuation figure with a recent comparison to the world’s debt. Reuters recently reported that projections on the debt show a possible rise to $255 trillion as we close 2019. This is according to a research done by the Institute of International Finance; ideally everyone in the world owes $32,500.
$255 Trillion Debt in Bitcoin Terms
The IIF report highlighted that the debt accumulation rate is far from slowing down. It therefore follows that a comparison of the $255 Trillion against BTC would make this stat easier to interpret from a crypto market perspective. As it stands, the total number of BTC in supply would have to represent over $12 million in order to account for the world’s outstanding debt.
A recent research by the Bank of America Merrill Lynch has shown that the main debt drivers are basically the stakeholders in any given economy. They include governments, parastatals, businesses with financial interest and households as well. The analysis further points out that most of the debt has been accumulated post the 2008 bubble with the financial services industry bearing most of it.
Bitcoin Vs the Financial Market
Despite the BTC success, the digital asset’s real economic output is not a true reflection of its value. Stats show Bitcoin would be at 60% lower in value if a comparison was to be made against its prevailing market price. In addition, the BTC concept of money is yet to gain trust amongst the Financial Market stakeholders given the imperfections that have in the past led to skewed asset valuations. BTC has however had its shining moments in the decade; the coin recorded a high of $20,000 as we closed 2017 and speculators are still optimistic of the $50,000 mark in the future.