Bitcoin ( BTC), the world's most valued cryptocurrency, recently had its total transfer volume reach $15.8 trillion. The U.S.'s total transfer vol
Bitcoin ( BTC), the world’s most valued cryptocurrency, recently had its total transfer volume reach $15.8 trillion. The U.S.’s total transfer volume is currently around 70%. A gross domestic product of approximately $22 trillion.
The total volume of Bitcoin transfers also exceeded the entire GDP of the largest economy in 2010 and 2011, which was $15 trillion and $15.5 billion, respectively. It is also expected to surpass the 2012 and 2013 U.S. gross domestic product levels of $16 trillion.
One of the main reasons for the steady growth in volume is the massive increase in Bitcoin price. In April, the Bitcoin volume reached $2.99 trillion when Bitcoin price reached $64,000.
It is interesting to note that even though Bitcoin’s price fell by more than half from its April record high, the volume of its transfers did not drop. Bitcoin still settles $236 million worth transactions per day. This is equivalent to December levels when Bitcoin traded in the $20,000 range.
This could indicate that Bitcoin investors still have a strong interest despite its volatility. This reinforces the idea that Bitcoin is an alternative to the current system of economics.
Why is Bitcoin volume exceeding U.S. GDP
Bitcoin is becoming an alternative investment vehicle. It is also being used as an alternative to the U.S. Dollar and the entire economic system. There was a significant increase in institutional interest and significant growth in retail Bitcoin investments in 2021.
U.S. companies began to implement strategies to keep Bitcoin on their balance sheets to offset the inflationary effects of rising consumer prices and fiat dollars.
The acceptance of cryptocurrency has increased across the financial system. This will increase its transfer volume over the coming days.
Morgan Stanley, Goldman Sachs and other banking giants have announced crypto services to their clients. Due to increased customer interest, fintech companies like Square and PayPal are looking to expand their crypto services.
Financial technology companies such as Square, Robinhood and Coinbase have made billions from crypto services in the first quarter of this year.
Bitcoin is gaining ground in the financial and economic systems
Bitcoin is becoming more popular as a method of payment, from the auction sector to the real-estate industry. An anonymous buyer purchased a rare 101.38-carat-carat diamond from Sotheby’s, Britain’s oldest auction house.
Wenhao Yu (Deputy Chairman for Jewelry in Asia at Sotheby’s) stated in a statement that “This is a truly symbolic moment.” The newest universal currency, the human currency, can now be used to purchase the most important and iconic denominator in value. There has never been a better time to bring a diamond of this quality to the market.
Tesla, the world’s largest electric vehicle company, has temporarily stopped buying vehicles using Bitcoin. However, Tesla CEO Elon Musk announced plans to reinstate Bitcoin as a valid payment method once the mining process shifts to clean energy.
Additionally, Jack Dorsey and Elon Musk have agreed to discuss Bitcoin during an event that will begin Wednesday, July 21st at 12:00 PM EST.