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

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

Although bitcoin and fiat currencies are not completely equivalent in terms of how the value in circulation is calculated, we can roughly estimate the place of bitcoin in global currency rankings by comparing its market value to the M0 money supply of fiat currencies.

Read:Bitcoin supply drops to 31-month lows

The number “M0” 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”.

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 in notes, more than three-quarters of which are in $100 and $20 denominations.

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

Like the US Federal Reserve, the European Central Bank maintains an updated reference to the amount of euro banknotes and banknotes that 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, and the total value consists mostly of €20 and €50.

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

Read:Is the Bitcoin correction over? Why did bitcoin reserves drop in exchanges?

According for data “TradingEconomics” There are about 8.16 trillion Chinese yuan in circulation, with a value equivalent to 1.26 trillion dollars.

The Japanese yen (JPY) ranks fourth, with at least 112.7 trillion yen notes and coins as of the latest update by the Bank of Japan, or roughly $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 capitalization of more than $1 trillion.

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

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

Read:The Saudi British Bank launches a dollar settlement service using the Ripple system for companies

What is considered a very strong advantage of Bitcoin is that it outperforms most fiat currencies in terms of a total supply that 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 but also digital and fiat currencies.

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

Read also:

How does blockchain analysis help in catching cryptocurrency criminals?

Meet 6 Cryptocurrencies That Increased Over 2000% in 2020