Will Cryptocurrencies Increasing Market Cap Eventually Cure the World Debt? The current World Monetary supply is approximately $90.5 Trillion USD give or take. This is what’s referred to as “Broad Money”. It takes into consideration all coins, banknotes, money market accounts, savings, checking and time deposits. Now $90.5 TRILLION with a “T” US Dollars. That’s an awful lot of money. HOWEVER NOT when compared with the World Debt! At OVER $215 Trillion USD with a big “CAPITAL T “ this is OVER DOUBLE the World Monetary Supply. This takes into account the TOTAL DEBT that’s been accumulated by ALL Households, Governments and Corporations combined. Roughly 1/3 or $70 TRILLION USD of this WORLD DEBT has occurred over the past 10 years.
That is scary spooky. The $215 Trillion USD WORLD DEBT represents 325% of the World’s GDP. WOW! That is incredible.
World Stock Markets with the market capitalization off all of the Global stock markets combined is about $74 TRILLION DOLLARS. Just a bit more than the entire Planet Earth’s Debt. By comparison all WORLD REAL ESTATE is currently estimated at $217 TRILLION USD. If you add up the combined value globally of residential property, hotels, industrial and agricultural land, retail space, offices and other commercial real estate it OUTWEIGHS THE CURRENT WORLD DEBT.
Now, we could look at using derivatives to pay down some of this rampant, growing, sizeable debt. The derivative markets consist of options, warrants, futures contracts, (including commodity futures), forward contracts, swaps, (including the now infamous credit default swaps of 2008 Global Financial Crisis), Collateralized Debt Obligations/CDOs and more. On the VERY LOW END the WORLD DERIVATIVE MARKET is estimated at $544 TRILLION USD On the VERY HIGH END the estimate is a staggering $1.2 QUADRILLION with a TREMENDOUSLY HUGE, TOTALLY UNREAL, LITERALLY UNFATHOMABLE, HARD TO GRASP “Q”. I mean come on…QUADRILLION. Who even knows how many Trillion 1.2 Quadrillion is anyway? Well, actually, it’s 1200. 13.26 times greater than the $90.5 TRILLION Monetary Supply 5.58 times greater than the $215 TRILLION World Debt. Enter Cryptocurrencies.
With over 900 Crypto tokens in virtual circulation the market cap, while fluctuating, volatile and unpredictable is currently growing exponentially by leaps and bounds. In fact, there are now 29 Cryptocurrencies with Market Caps of $1 BILLION or more according to CoinMarketCap.com as recently reported by Business Insider. Bitcoin is currently valued at about $100 BILLION USD Ethereum is running a distant 2nd place at around $28 BILLION USD
With all the rest of the Crypto’s at approximately $45 BILLION USD So, we have $173 BILLION USD in MARKET CAP from CRYPTO. ONLY a BILLION with a B, BUT GROWING and increasing its market cap. If the WORLD DEBT can increase by 1/3 in a decade then why isn’t it possible that the growth of this debt can be halted with Cryptocurrencies? If Cryptocurrency market cap can stabilize and become more secure similar to Apple Inc. (AAPL) current market cap of over $800 BILLION USD. Cryptocurrency as a whole has a current market cap valued at under 25% or a Quarter of Apple. However, if the Paradise Papers are correct, and Apple’s Secret Offshore wealth is true, then possibly Apple can help lower the National Debt (or repatriate the assets to raise its market cap and increase the WORLD MONETARY SUPPLY), but Apple is a story for another day.
As the very knowledgeable James Altucher concluded in his report;
“Cryptocurrency: The Good, The Bad, and The Future of Money Supply”… ‘A: Cryptocurrency philosophy is valid and not going anywhere and is a natural evolution in the history of money from bartering to coins to paper money to data money.’ And once the volatility of Cryptocurrencies plays out… And as Altucher continues in B: of his report’s conclusion: Volatility is huge as people determine what coins are real and what aren’t. So… good people in Crypto Land. In summary… One day Cryptocurrencies market cap will increase significantly enough to largely increase the World Monetary supply. In comparison this may make the WORLD DEBT look much smaller. If we can actually use the Crypto to pay down the tremendous Global Debt then it will, one day, really be much smaller. A lot of great things in store for BOTH Cryptocurrency, and Blockchain too. Perhaps Blockchain, or IOTA’s Tangle platform, will cure Cancer and establish World Peace.
But, that too, is another story for a different day. Continue Here - https://blog.goodaudience.com/will-cryptocurrencies-increasing-market-capeventually-cure-the-world-debt-1b264f443b17