The leading cryptocurrency continues to absorb all capital on its way, increasing its price and market capitalization. The recent uptrend and rise in the price of Bitcoin has caused the asset to outperform the Russian ruble in terms of total market capitalization.
This is why the cryptocurrency, which continues to increase the global currency list by rank, is so incredibly important to the future of the asset.
Bitcoin beats Russian ruble and is getting closer to the global reserve currency
Although the asset class has the word itself in its name, the first line of defense by Bitcoin pundits and naysayers is to point out that very few actually use the asset as currency.
The first cryptocurrency was developed as a peer-to-peer form of “digital money”, but now functions more as “digital gold”. Instead of using Bitcoin to pay for goods and services, investors “hold on” long term and rarely spend it.
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Those who spend it will regret it later when the price goes up that much. Nothing prevents Bitcoin and other crypto assets from being spent anywhere they are accepted. And while this may be limited, there are far more traders who accept crypto than those who take physical gold bars.
Because of this, regardless of its current use, Bitcoin is still a currency at its core. And while the crypto asset is still a long way from catching up on gold’s market cap, it is knocking down other national superpowers as a currency.
BTC beats RUB and closing in on CHF | Source: FiatMarketCap
The last currency offering that Bitcoin has now overtaken in total value is the Russian ruble. A cryptocurrency that was once worthless is now more valuable than the entire supply of Russian-made money that exists worldwide.
What is even more important is Bitcoin’s proximity to the top ten currencies by world ranking and the fact that it is creeping in right behind the Swiss Franc (CHF). The franc is a global reserve currency, which makes it especially noteworthy when the cryptocurrency hands it over.
The argument that Bitcoin is not a currency not only carries no weight, it could also be a sign that it is well on its way to becoming the most dominant global reserve currency of all.
BTC is closing in on $1 trillion market cap | Source: CRYPTOCAP-BTC on TradingView.com
After Switzerland, Bitcoin meets the Brazilian real and the Taiwanese dollar. Behind are the ten most important currencies and the like such as yen, yuan and US dollar.
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The interesting thing about Bitcoin is that while few use it as a currency these days, there is no reason why users of the technology would use it for day-to-day transactions when years of adoption actually resolve the volatility.
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