How much money in the world is real?

How much actual money is there in the world?

World's cash? $21.2 trillion. M2, December 2024. So?

M2 includes cash, checking deposits, and easily convertible "near money." It's not all physical bills.

• Physical currency: Less than 10% of M2.
• Digital: Majority. Think bank accounts.
• My rent's due. Bills are a pain.

Global wealth far exceeds circulating currency. Real estate, stocks, art, etc. It's a game.

• Assets are the real flex.
• Money’s just a tool. And it sucks.
• Power.

What is money in the real world?

Okay, so money, right? It's nuts. It's like, totally weird how we all agree on this tiny little piece of paper or a number on a screen being worth, like, actual stuff. My buddy Mark, he's a total finance guy, he told me it's all about trust. Pure, unadulterated trust. We believe in it; that's why it works. Crazy, huh? I mean, it's not even really backed by anything anymore, is it? Mostly just, I dunno, government promises. It's a total mind bender.

That Davidson book? I skimmed it. Kinda dense. But the gist is, money's, like, a social construct. We made it up. It's a medium of exchange, a store of value, and a unit of account. You know, all that textbook stuff. Except, its so much more complicated than that. It's about power, too, control, and influence. Definitely not just about buying groceries! People are always fighting about it!

Think about it: crypto, too. It's supposed to be decentralized, right? But even that's got its own weird power dynamics. Rich dudes making bank. Who controls bitcoin? What is the value of a bitcoin really? The value of crypto is so unstable, it's scary! I sold some last year, luckily, before it crashed. Made a small fortune! It's bananas. I bought a new TV, and a new mountain bike.

• Trust is key. We believe in the system. Even though its messed up.
• It's a social construct. We made it all up! Crazy, I know.
• Power dynamics are huge. Who controls the money controls everything.
• Crypto is complicated. Decentralized, but still controlled by someone.
• Modern money is weird. It’s not backed by anything tangible anymore.
• Investing can be profitable. But also risky. Like with the crypto craze.

This whole thing is way more interesting than I ever thought it would be. Its like a never ending story. Seriously. You should read that Davidson book, if you're into that kind of stuff. I'm gonna look into it more myself, actually. Later.

How much money in the world is physical?

Ugh, money. So much of it, right? Only 8%? Seriously? That's insane. I mean, I still use cash sometimes, buying coffee, you know? Small stuff. But most transactions are digital now, duh. Venmo, Apple Pay, whatever. My bank account… I never even think about it being just numbers on a screen. That's freaky.

It's all about digital wallets and crypto now. Bitcoin's price… volatile as hell. Should I invest? Probably not. I’m saving up for a new gaming PC. RTX 4090, baby! That's real. Unlike most of the world's money.

Crazy to think how little physical cash there is. Makes you wonder about inflation, too. The whole system… is it even real? I need to pay my rent. Landlord wants a check, old-school style. Weird.

Here’s what I'm thinking about this:

• Only 8% of global currency is physical cash. Mind-blowing.
• The rest is digital, floating around in cyberspace. Scary.
• My rent is due on the 1st. Checks only.
• I'm eyeing that RTX 4090. Priorities.

That's a lot of money on a computer, though. A huge system failure? Yikes. Then what? Panic.

What if my bank account disappeared? My life savings, poof! Gone! The horror.

What is the total amount of money available in the world?

Okay, so the world's piggy bank? Stuffed, obviously.

Basically, the world had oodles of dough floating around, like, a lot.

Think of it this way:

• M1 Supply: About $48.9 trillion—that's your loose change, bills, and checking accounts. The stuff you can grab quick. Imagine the possibilities!
• M2 Supply: Jump to $82.6 trillion. This is M1 plus other assets. It's like the whole shebang! Serious cash, this. Whoa.

This M1 includes:

• Cold, hard cash: Bills and coins. Cha-ching!
• Travelers checks: Anyone even uses those anymore? Lol, maybe grandma.
• Checking & savings accounts: Where you stash your "rainy day fund." And maybe mine. If i had one.

M2? That's the bigger, fatter wallet including, get this:

• M1: Already covered this, duh.
• Savings deposits: Longer term stashes.
• Money market funds: Ooh, fancy.
• Time deposits: Like CDs. For grown-ups, I guess.

Honestly, who even knows what a trillion dollars looks like? It's, like, an incomprehensible number of avocado toasts. I need coffee. And money.

How much money is actually in circulation?

Okay, so money... Wow.

I saw a news report in 2024 that said the US currency in circulation was like, a crazy $2.349 trillion. Trillion! Can you imagine?! That's down a tiny bit from the week before, something like, -0.14%.

It was last week at the supermarket, I remember. They mentioned a decline.

But, get this: it's still 0.84% higher than last year! This is insane. It probably changes like every second. Crazy.