MORGAN STANLEY: Bitcoin still only 2% of global money supply. • BTC to outperform if user growth continues. • Held as store-of-value & financial asset. • Biggest risk is encryption failure.

Morgan Stanley said Bitcoin makes up about 2% of the world's total money supply and could outperform other assets if its user base keeps growing, while noting that an encryption failure is the biggest risk.

Published: 2026-08-04T18:29:40+00:00

Updated: 2026-08-04T19:02:30.105768+00:00

What happened

Morgan Stanley said Bitcoin makes up about 2% of the world’s total money supply and could outperform other assets if its user base keeps growing, while noting that an encryption failure is the biggest risk.

Confirmed

Global impact / market context

If Bitcoin’s share of global money rises, investors could earn higher returns compared with traditional currencies, but a breach of its cryptographic security could quickly erode confidence and price.

Analyst inference

The comment arrives as crypto markets track adoption trends and regulatory scrutiny; Bitcoin’s small 2% share suggests growth potential, yet its price stays sensitive to security news and broader risk sentiment.

Analyst inference

What to watch

Growth in the number of active Bitcoin wallets, which signals user adoption and could drive the outperformance Morgan Stanley expects if the trend continues. Confirmed
Reports of vulnerabilities or successful attacks on Bitcoin’s encryption, because a breach would confirm the biggest risk highlighted by Morgan Stanley. Confirmed
Any changes in Bitcoin’s share of the global money supply, since staying near 2% or increasing would affect its potential to outperform other assets. Confirmed

Affected assets

BTC — Bitcoin

Evidence

x.com