Also comparing the bitcoin market cap to M1 is not apples to apples. You would need to adjust for all coins in cold storage, anything invested in bitcoin denominated securities, and bitcoins in abandoned wallets. Also all of the winkelvoses bitcoins wouldn't count(~1%) because a) they are in cold storage and b) they are going to be used to back their bitcoin fund with takes them out of M1.
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but you would still have to account for any bitcoins invested in bitcoin stock markets.
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but you would still have to account for any bitcoins invested in bitcoin stock markets.
But M1 also includes lost/stolen/"locked away" cash, if I'm not mistaken. There's simply no way to actually know how much cash (or bitcoins) is out of circulation.
I still think that what we call bitcoin "market cap" is its M0 (monetary base), not M1 nor M2. Whenever (if ever) we start to have bitcoin-quoted financial instruments that are traded around as money, then we'll have to add these to the "market cap" to get a higher aggregation.
I haven't found any sorted list of fiat currencies per M0 though.
Becuase of the way banks have been allowed to inturpet the definitions of M1 and M2, and increasing intervention by the Fed M1 has become less and less relevant. If we want an accurate picture we should really be comparing to M2.
