Bitcoin’s Market Cap Surpasses the IMF’s Special Drawing Rights Reserves

Twenty-four hours ago the decentralized cryptocurrency bitcoin and its US$300Bn market capitalization just surpassed the International Monetary Fund’s (IMF) Special Drawing Rights market (SDR $291Bn).

Also read: Cayman Investment Forum Focuses on Rise of Bitcoin and Failing Dollar

Bitcoin’s Market Valuation Outpaces the IMF’s Special Drawing Rights Reserves

Bitcoin’s value has grown immensely in 2017 outperforming nearly every world currency, stock, and commodity this year. With a global average of over $18,000 per BTC and a $300Bn+ market valuation bitcoin has surpassed the IMF’s international reserve assets ($291Bn). The SDR is comprised of a ‘basket of legal tender’ from five nation-states. The value of the SDR, also known as XDRs, is based off a percentage of Chinese renminbi, U.S. dollar, the Japanese yen, the euro, and the British pound sterling. The SDR was created in 1969 using the Bretton Woods exchange system, and before 1973 it contained the value of 0.8 grams of gold.

The SDR Gains Traction This Year As the U.S. Loses Ground, and Countries Decouple from the USD

The IMF’s Special Drawing Rights market has always been controversial since the day it was introduced. Essentially, the basket of currencies are allocated to countries by the IMF and a nation participating in the exchange market has to have reserves. Many skeptics believe the IMF is creating a “globalist one world currency” so it can continue to keep the central banking system in power. This year has been an interesting year for the SDR, as the reserve has gained in value in comparison to other solitary nation-state currencies. The trend has seen an uptick due to a few nations decoupling from the USD, as the IMF revealed this past summer that America was no longer the top economic powerhouse. These days other countries like Germany, Russia, and China are making monetary moves on their own.

Bitcoin’s Black Swan Event and the Next Transfer of Wealth

However, the citizens of the world, the ones without borders, are riding the lightning growth of a different kind of currency. Bitcoin has become the censorship-resistant black swan economy that’s not issued by a nation state or corporation. In fact, the decentralized currency came from an anonymous creator, and it’s a software made up of digits and code that millions of people trust. Bitcoin has become an internet-infused ‘people’s money,’ and the technology is shifting a lot of wealth into the hands of individuals in a way that’s not been seen since the oil rush back in 1859. Even the International Monetary Fund’s Christine Lagarde says bitcoin will cause “massive disruptions” to the existing financial system.

“In many ways, virtual currencies might just give existing currencies and monetary policy a run for their money. The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve,” explains Lagarde this September. 

The currency was born in 2009 and bitcoin has come along way since 10,000 BTC happened to be traded for two Papa Johns pizzas in 2010. A year later the currency reached parity with the U.S. dollar and rose to thirty dollars during its first “bubble.” The reason it was called a bubble is because, shortly after, markets dipped to a low of $2. For a while, the price remained stable, but slowly rose to $13 in December of 2012. Then in the spring of 2013, the price jumped to $266 and rallied to a high of $1,242 across global exchanges. Again the high didn’t last long as the price took a bearish dive all year after the Mt Gox exchange lost 800,000 BTC, and went bankrupt. That year economic pundits and financial publications called bitcoin the “worst currency of the year.”

Bitcoin’s Value Matures Greatly In 2017

In 2015 bitcoin started gradually rising once again and captured the top performing currency in 2015 and 2016. After the new year and into 2017 bitcoin once again surpassed $1,000 per BTC. It started its phenomenal rise that has stayed consistent every month since then. In March of 2017 bitcoin proponents thought it was a big deal when the decentralized currency surpassed the spot price of one troy ounce of .999 gold. However, bitcoin’s capitalization even today is tiny in comparison to the gold market’s 9 trillion annual valuation. Still, bitcoin is bigger than many of the capitalizations tethered to corporate entities and stocks. For instance, bitcoin’s market cap is larger than Paypal, IBM, Disney, General Electric, McDonalds, and even the global fine arts market.

Bitcoin has also given birth to over a 1,000 clones and has created numerous ways for people to raise wealth. With all of the digital assets and bitcoin’s cap combined, the global value of cryptocurrency assets is currently over a half of a trillion U.S. dollars.  It’s a pretty big deal that a currency that doesn’t have any rulers, and is not issued by the nation states or IMF, is gaining so much traction. Bitcoin’s market cap has surpassed a lot of things and exceeding the SDR reserves created by globalists and bureaucrats is one more milestone for the history books in 2017.

What do you think about bitcoin’s market cap exceeding the IMF’s special drawing rights reserves? Let us know in the comments below.

Images via Pixabay, Coinbase, IMF SDR, and Twitter @datavetaren.

Get our news feed on your site. Check our widget services.

The post Bitcoin’s Market Cap Surpasses the IMF’s Special Drawing Rights Reserves appeared first on Bitcoin News.

Bitcoin.com

Bitcoin.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.