Bitcoin as % of dollar monetary base

[jbuckley2]

Trying to work out what bitcoin's total market cap is as a % of the total dollar plus bitcoin monetary base (for my dissertation). Have read it was 0.14% in 2015 when the total market cap was roughly $5.5bn but now at $191bn it's increased.

The dollar monetary base is 1,606,695 million (1,606,695,000,000)
Bitcoins current market cap is $191bn.

I keep getting an answer of circa 10% which seems like far too much.

Any help much appreciated!
Thanks

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[clrpod]

Trying to work out what bitcoin's total market cap is as a % of the total dollar plus bitcoin monetary base (for my dissertation). Have read it was 0.14% in 2015 when the total market cap was roughly $5.5bn but now at $191bn it's increased.

The dollar monetary base is 1,606,695 million (1,606,695,000,000)
Bitcoins current market cap is $191bn.

I keep getting an answer of circa 10% which seems like far too much.

Any help much appreciated!
Thanks

Well the numbers add up, so unless you've got incorrect data then you're correct. If you say it was 0.14% when the whole crypto market cap was 5.5bn then I would guess bitcoin alone was at maybe 4.5bn-5bn, it would mean it's increased by about 40 times since then, assuming money supply has stayed the same, giving you about a 6% answer. Perhaps you should look in to what definitions were used when considering the monetary base.

[davis196]

If the total dollar monetary base is 1,606 billion USD and the bitcoin market cap is 191 billion USD,it`s easy to do the math.It`s around 11,89%.I`m not sure that your data is accurate enough and i would say that comparing the USD monetary base with the btc market cap is wrong.What`s the point of comparing all this?
Good luck with your homework.How old are you?

[stompix]

Trying to work out what bitcoin's total market cap is as a % of the total dollar plus bitcoin monetary base (for my dissertation). Have read it was 0.14% in 2015 when the total market cap was roughly $5.5bn but now at $191bn it's increased.

The dollar monetary base is 1,606,695 million (1,606,695,000,000)
Bitcoins current market cap is $191bn.

I keep getting an answer of circa 10% which seems like far too much.

Any help much appreciated!
Thanks

The math is correct, unfortunately the number are wrong.

https://www.federalreserve.gov/releases/h3/Current/default.htm
The US monetary base is around 3,854,014 millions this is not like bitcoin, it's totally different when you say "in circulation".

But I really want to know what's the point of comparison since it can be awfully misleading.

[shulio]

Yeah, the dollar monetary base is wrong. It was 4,500,000 million last year. After the FED increased the interest percentage and collected dollars from the world, it decreased to nearly 3,800,000 millions. So the % of Bitcoin to dollars is nearly 5%

[Murloc]

Trying to work out what bitcoin's total market cap is as a % of the total dollar plus bitcoin monetary base (for my dissertation). Have read it was 0.14% in 2015 when the total market cap was roughly $5.5bn but now at $191bn it's increased.

The dollar monetary base is 1,606,695 million (1,606,695,000,000)
Bitcoins current market cap is $191bn.

I keep getting an answer of circa 10% which seems like far too much.

Any help much appreciated!
Thanks

The math is correct, unfortunately the number are wrong.

https://www.federalreserve.gov/releases/h3/Current/default.htm
The US monetary base is around 3,854,014 millions this is not like bitcoin, it's totally different when you say "in circulation".

But I really want to know what's the point of comparison since it can be awfully misleading.

IMO it is a bit wrong to compare the market cap of BTC and the circulation of USD. For example when someone sells 1$ higher then the current price the whole market cap of BTC increases on 1$ for each mined bitcoin while 1 USD is still 1 USD untill a new dollars will be "printed". Printing more money will only result its devaluation.

[thejaytiesto]

The total amount of dollars that could exist is basically infinite, so the potential price against BTC is potentially infinite, which is why it's stupid and we should be valuing everything against BTC and not against fiat currencies. AT least in principle. I don't know how valuing things against a finite supply currency could work in practice.

[aeternus]

The total amount of dollars that could exist is basically infinite, so the potential price against BTC is potentially infinite, which is why it's stupid and we should be valuing everything against BTC and not against fiat currencies. AT least in principle. I don't know how valuing things against a finite supply currency could work in practice.

I agree, the amount of dollars that can be printed is infinite so we must look at the value of bitcoin and not the price, what can you buy with your bitcoin? With a value of 11k that is enough to buy a small new car in my country, we are not far from the point in which a single bitcoin will be enough to buy one house, that is the correct way to evaluate bitcoin value.