Bitcoin (BTC), the world’s most valued cryptocurrency, just saw its total transfer volume reach $15.8 trillion. The entire transfer volume presently accounts for around 70% of the $22 trillion GDP of the United States.
Bitcoin transfer volume also topped the entire GDP of the world’s largest economy in 2010 and 2011, which was $15 trillion and $15.5 trillion, respectively. Furthermore, it is on track to surpass the $16 trillion GDP levels of the United States in 2012 and 2013.
The enormous rise in the price of Bitcoin is one of the primary reasons for the long-term increase in transfer volume. When the Bitcoin price peaked at $64,000 in April, the total volume of Bitcoin transfers reached $2.99 trillion.
Surprisingly, when Bitcoin’s price plummeted more than 50% from its all-time high in April, transfer volume did not fall. Bitcoin is still settling $236 million in transactions each day, which is comparable to levels seen in December when Bitcoin was trading in the $20,000 zone.
This might imply that despite the massive price fluctuation, investors’ enthusiasm for Bitcoin remains intact. This also proves that the most valued cryptocurrency is a viable alternative to the present economic system.
Bitcoin is becoming not simply an alternative investment vehicle, but also an alternative to the US currency and the whole economic system. In 2021, there was an increase in institutional interest, as well as a considerable rise in retail Bitcoin investments.
Furthermore, U.S. businesses have begun to adopt methods to retain Bitcoin on their balance sheets in order to mitigate the impact of inflationary fiat currency and growing consumer costs.
There has also been a greater acceptance of cryptocurrencies within the banking sector, which will boost its transfer volume in the coming days.
Banking behemoths such as Morgan Stanley, Goldman Sachs, and others have lately launched crypto services for their customers. Due to increased client interest, fintech businesses like PayPal and Square are also looking to extend their crypto services in the coming months.
Financial technology firms like Square, Robinhood, Coinbase, and Paypal generated billions of dollars in revenue from crypto services in the first two quarters of this year.
From the auction market to the real estate sector, Bitcoin is becoming more widely accepted as a form of payment. Sotheby’s, the world’s oldest British-based auction company, recently sold a rare 101.38-carat diamond to an unidentified bidder for $12.3 million in bitcoin.
“This is a truly symbolic moment,” Wenhao Yu, Sotheby’s deputy chairman for jewelry in Asia, said in a statement. “The most ancient and emblematic denominator of value can now, for the first time, be purchased using humanity’s newest universal currency. Never was there a better moment to bring a world-class diamond such as this to the market.”
Although the world’s largest electric car business, Tesla, has temporarily halted vehicle sales using Bitcoin due to environmental concerns, Tesla CEO Elon Musk has stated that Bitcoin would be reinstated as a viable method of payment once mining operations transition to clean energy.