Bitcoin is growing larger with time, and now it has toppled the Australian Dollar Supply(M1). The total supply of the Australian dollar is $1.08 T, and Bitcoin has crossed that mark. This was first reported by “Documenting Bitcoin” on Twitter. The account posted a tweet saying, “#Bitcoin is not larger than the Australian Dollar(M1)”. It is also one of the largest achievements in Bitcoin’s history.
— Documenting Bitcoin 📄 (@DocumentingBTC) March 29, 2021
Bitcoin>Australian Dollar supply?
Even though the government can print dollars in an unlimited amount, the market quantity is limited at any particular point in time. According to the data provided by CEIC, the Australian Dollar(M1) has an open market supply of $1.07T-$1.08T, while for Bitcoin, it is between $1.08T-$1.09T. Did you notice the term M1 in the tweet? This term defines the liquidity of the Australian dollar. So, the $1.07T is the amount present in liquid form in the market and can be used at any time. This amount is not the money in banks, equities, bonds, or any other illiquid asset.
The main difference between Bitcoin and fiat money
Remember that no matter how valuable Bitcoin becomes, it is extremely improbable that it can replace a fiat currency. This is because the government likes control; it likes monopoly. And with a decentralized currency that won’t exist. While banks and other government entities can just print money without needing anything, the supply of BTC is limited. The value of the liquid money that exists in the market can increase if more printing is done, and for BTC, that is not the case.
We have seen the market cap of the dollar increasing on a new stimulus check, but for Bitcoin, the same will happen when its prices reach new heights. We can already see that Bitcoin has become very important to ignore. Based on the Tweet of Documenting Bitcoin, it is estimated that the curreny transfers over $137,000 every second. But still, if it’s not a replacement to fiat, then what will it replace?
Many esteemed personalities and with knowledge in the matter have repeatedly said that BTC is a replacement for Gold. The cryptocurreny has the ability to overturn gold and become the most valuable asset globally. It also has many advantages that make it really a much better asset than gold. While the market of Gold has been down in 2021, Bitcoin has seen massive gains. Even banks that were all into gold till now, are now treating Bitcoin as a valuable asset. The steep change in the way that BTC is perceived is a clear indication of its bright future.
What are your thoughts on Bitcoin toppling the Australian Dollar Supply(M1)? And do you think one day it could do the same to the American Dollar? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.