The True Amount of Money in the World: Analysis of Global Distribution

Understanding how much money is in the world is essential to grasp the global economic structure. Contrary to what many might think, the figure is much lower than the total financial assets, and this distinction is crucial for analyzing phenomena like the potential growth of Bitcoin and other cryptocurrencies.

Breakdown of Cash and Bank Deposits

Money in the world is distributed across several clearly defined categories. First, cash (physically printed bills and coins) accounts for approximately $9 trillion worldwide. This figure is surprisingly small considering the scale of the global economy.

On the other hand, money deposited in bank accounts makes up a much larger proportion. Conventional deposits and liquid assets total around $100 trillion, while large deposits and investment funds add approximately $150 trillion. In total, the actual circulating and deposited money worldwide is about $150 trillion.

It’s important to note that this figure differs significantly from the total valuation of financial assets, which exceeds a quintillion dollars. Stocks, bonds, derivatives, and other instruments are estimates of value rather than actual cash or available funds.

Who Holds Most of the Global Money?

The geographic distribution of money worldwide reveals a notable concentration. The United States dominates overwhelmingly, controlling nearly $62 trillion, which is more than one-third of the global monetary mass. This position reinforces the central role of the US dollar in the world economy.

China ranks second with approximately $16 trillion, followed by Japan with nearly $6.5 trillion. This hierarchy is not coincidental but reflects the economic power and political influence of these nations. Observing these figures helps understand current geopolitical dynamics and why closely monitoring US monetary decisions is essential for financial markets.

Why Bitcoin’s Growth Doesn’t Depend on Existing Money

A common argument is that there isn’t enough money in the world for Bitcoin to keep growing. However, this perspective overlooks the nature of digital money and the redistribution of value. Money in the world doesn’t need to be constantly created; what happens is a reallocation of assets across different categories.

As investors recognize the value of digital assets, part of the $150 trillion available can flow into Bitcoin and other cryptocurrencies without increasing the total amount of money. This is why understanding the true amount of money in the world is fundamental to evaluating the growth potential of new asset classes in the digital economy.