You know that fiat money and the money that we globally use (bitcoin) are different terms, but we have to spend fiat money to buy bitcoin, and without fiat currency through Crypto Trader site, it is impossible to use bitcoin. So many people want to know where the fiat money goes when we buy or purchase bitcoin from exchanges, and many know where the exchange goes. But some people want to know how much total fiat money is in bitcoin so they can take or measure the worth of the bitcoin cryptocurrency that we will learn in this guide.
What do you mean by Bitcoin cryptocurrency?
Bitcoin cryptocurrency is a digital coin that works on the blockchain system, and blockchain is the ledger system that does not work under the control of any entity or third-party institutions. So bitcoin is the tool that we trade on the blockchain like the fiat currency but in digital form where no one can control it, and the users who buy this coin are the actual owner of the coin until they sell their bitcoins.
What is fiat money?
I was too confused when I learned about the word fiat money. Still, after researching a lot about fiat money, I learned that fiat is the simple paper or digital currency we use daily for day-to-day transactions. The bank and government is the actual controller of this currency, which means we have to take their consent or permission to withdraw or use it. Examples of fiat money are USD, INR, PKR, POUND, EURO, etc., and different countries have separate currencies according to their rules and policies.
The total fiat money in bitcoin in November 2021
Did you know that November was the boom for the bitcoin users because it was the only time bitcoin broke all its high records? At that time, bitcoin hit its high price above 54,000 dollars, but now the current price dropped very low, up to 20,236 dollars. According to the Google report, the value of bitcoin was over 1 trillion dollars on 26 November 2021, which was the highest value ever in cryptocurrency.
Money supply in bitcoin
If you were to ask the total money supply in bitcoin, that would become a very complex question to solve because the money supply is vast and isn’t easy to know. It includes many parts like paper currency, banknotes, coins, metal, Gold, money market, debt, etc., and calculating all the money is very difficult. So they conducted a calculation to know about the supply in bitcoin, and they came to know after the research that there is over 35 billion money in the little money, i.e., money in the form of cash, coins, etc., that can be physically touchable. So they came up with the result that the money supply in bitcoin is around three per cent of the 35 trillion.
Gold vs bitcoin vs other cryptocurrencies
Many people compare Gold and bitcoin and other cryptocurrencies because they want to know the potential of bitcoin and which is the safest and high return investment to help them become rich. For example, according to the comparison report of Gold by the World Gold Council, there are over 11 trillion Gold mined until 26 November in 2021, and bitcoin is about nine per cent in value as the total value of Gold. However, suppose you will compare bitcoin with the other cryptocurrencies. In that case, bitcoin is on top compared to the market valuation because the supply of other coins is very high, but the supply of bitcoin is limited, and demand is high; hence bitcoin is becoming the king currency on the crypto market.
You know that many people are not disclosing their money because it is very complex for the government to know the amount of money people have. They are also investing or selling bitcoin through their local peers. It has become more and more complex to know the real money in bitcoin until now. But according to the report you read above, bitcoin is around three per cent in value of little money, which is over thirty-five trillion.