Throughout last year, there was more than $3.2 trillion worth of Bitcoin payments processed on the public blockchain network.
The high on-chain transaction volume of the dominant cryptocurrency has demonstrated the efficiency of the asset as the cross-border payment method and as another way to exist settlements systems for payments on a global scale.
The Bitcoin vs Gold Debate
Ah yes, that old chestnut. It has been a common debate about whether Bitcoin is a more efficient version of gold. As reported by CCN, the two are compared as Bitcoin is a store of value and a medium of exchange. Even though both assets are unaffected by the performance of the broader financial market and are generally not in relation to traditional investment vehicles.
Nevertheless, the argument can be made that the leading cryptocurrency is a more efficient version of gold due to its ability to both works as a medium of exchange as well as a cross-border payment system.
In November last year, one of the biggest exchanges in the world, Binance sent $600 million with a $7 fee. This was a process of 107,000 Bitcoin being sent within 60 minutes.
For this kind of amount to be processing using gold or traditional financial services, third party service providers and regulators need to get involved. This can result in a stretched out process of dealing with paperwork and compliance related activities.
Because of how effective large transactions and cross-border transactions are being dealt with, this has allowed the Bitcoin network to reach a volume of $3.2 trillion in 2018. Recording a year-on-year median increase of just under 3 percent.
Analysts at Satoshi Capital Research wrote:
“Comparing Bitcoin’s network performance in 2018 to prior years: – Total trading volume: $2.2 trillion – Total Layer 1 transaction volume: $3.2 tn – Total change in transaction volume 2017-2018: -8.23% ($0.3 tn) – Median change year-on-year 2017-2018 for every day in the year: +2.91%.”
It’s worth noting that the huge transaction volume of Bitcoin doesn’t include the over-the-counter volume. This is said to be bigger than the volume of the exchange market as a whole.
Now that is insane.
What are your thoughts? Let us know what you think down below in the comments