If the U.S Dollar Was a Crypto Currency | How Does it Stack Up Against BTC.

Updated: Nov 7, 2021


Everyone says that meme coins are a bad investment, and I agree with them. However its always fun to pretend for a minute that USD is a crypto currency and compare it to other crypto currencies. Lets start off by getting the statistics for USD.


Current Supply/Market Cap:

From the website us.currency.gov we can see the value of currency in circulation as of December 31st for each year. With 2021 not being over just yet, we will be basing these number off of the values for 2020. Below you will see a chart for the value of currency in circulation, in billions of dollars.

The total value in circulation for 2020 is estimated to be around 2.04 Trillion dollars. We will take this value as the Market Cap.


Volume Being Traded Every Year:

From the same website us.currency.gov we can check the volume of currency in circulation. Again this is in billions of notes and taken on December 31st of each year.

From this chart for 2020 we can observe that the estimated volume for 2020 is around 50.3 billion dollars. This means that the volume traded is around 2.4%.


Inflation or % lost per day:

The next key statistic we need to observe is inflation. Because I'm lazy and cant find the chart for 2020, and this is just a fun comparison, were going to use the current chart for 2021. This chart is from the Consumer Price Index.


Here we can see massive inflation in cost of energy and the rest look mostly average. This is not seasonally adjusted, but the average inflation is around 5.3%.


USD Summary:

Market Cap: 2.04 Trillion

Volume: 2.4%

Current Price Change-year: -5.3%


Comparing to BTC:


Thankfully I can get all of the statistics for BTC right from coinbase. BTC market cap is 1 Trillion, circulating supply is 18.8 Million, vloume for 24 hours is 34.9 billion/4.7% and it is up nearly 400% in the past year.

Unfortunatly coinbase does not have the yearly amount traded, but we can see a 24 hour trade volume. This is $34.9B USD traded in BTC so if we convert that to BTC using the current price, and multiply it by 365 days we get 234,948,564 BTC traded a year. If we take the amount traded yearly and divide it by the amount traded each year we will get the trade volume which is 1249.72% annually.

Comparing BTC To USD:


The current market cap for BTC is nearly half of what USD is. The volume of USD being traded every year is around 2.4% where BTC is around 1249.72% traded every year. The current price change of USD is -5.3% and BTC is +400%.


Conclusion:


Even the most well known crypto is far from becoming stable. With a massive change in price over the past few months, and currency passing through so many hands it will take some time before other country's make BTC legal tender. Sure the return this year has been massive, but with all the swings its just not possible to pay bills and buy goods and services reliably. I believe within the next year we will see more investors hodl BTC and stabilize the price, but until then lets keep on pushing!