Bitcoin has achieved a significant milestone by surpassing the New Taiwan Dollar (TWD) in terms of monetary base value when measured in BTC. According to recent data, Bitcoin's valuation now exceeds that of Taiwan's M2 money supply, positioning it as the 12th largest currency globally.
This development highlights Bitcoin's growing influence in the global financial landscape. With a total value equivalent to 19,785,378 BTC, Bitcoin has edged past Taiwan's M2 valuation of 19,760,251 BTC. Taiwan's M2 money supply, which includes cash, checking deposits, savings deposits, and other highly liquid assets, is approximately 63 trillion TWD.
Understanding M2 and Bitcoin's Valuation
M2 is a broad measure of a country's money supply, encompassing physical currency, demand deposits, savings deposits, and other near-money assets. It serves as a key indicator of economic liquidity and financial stability. Bitcoin's comparison to traditional fiat currencies like the New Taiwan Dollar underscores its evolving role as a store of value and medium of exchange.
Beyond currency rankings, Bitcoin has also climbed the ranks of global assets. With a market capitalization of approximately $1.917 trillion, it has overtaken Saudi Aramco to become the world's seventh-largest asset. This achievement reflects increasing institutional adoption and mainstream acceptance of cryptocurrencies.
Market Sentiment and Expert Predictions
Despite Bitcoin's bullish momentum, some market experts anticipate a potential correction. Galaxy Digital CEO Michael Novogratz has warned that while Bitcoin is likely to surpass $100,000, the market is currently highly leveraged. He predicts a correction but believes Bitcoin will not fall below $80,000, the price level before recent political developments.
Novogratz also cautions investors about leveraged Bitcoin-based investments, advising direct ownership of Bitcoin instead. His insights highlight the importance of risk management in volatile markets.
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Frequently Asked Questions
What does it mean for Bitcoin to surpass the New Taiwan Dollar in M2?
It means that the total value of all Bitcoin in circulation, when measured against Taiwan's broad money supply, is higher. This indicates Bitcoin's growing economic significance compared to traditional fiat currencies.
How is M2 defined, and why is it important?
M2 includes cash, checking deposits, savings deposits, and other highly liquid assets. It is a key metric for assessing the money supply and financial liquidity within an economy, influencing inflation and economic growth.
What factors are driving Bitcoin's recent price surge?
Key drivers include increased institutional investment, regulatory clarity in major markets, and growing adoption as a hedge against inflation. Political developments and macroeconomic trends also play significant roles.
Is now a good time to invest in Bitcoin?
While Bitcoin shows long-term potential, market volatility remains high. Investors should conduct thorough research, consider their risk tolerance, and potentially consult financial advisors before investing.
How does Bitcoin's market cap compare to other major assets?
Bitcoin's market cap of over $1.9 trillion places it among the top global assets, surpassing major corporations and commodities. This reflects its acceptance as a legitimate asset class.
What are the risks of investing in leveraged Bitcoin products?
Leveraged products amplify both gains and losses, increasing risk. Market corrections can lead to significant losses, making direct Bitcoin ownership a safer option for many investors.