The world’s most valuable cryptocurrency Bitcoin (BTC) recently saw its total transfer volume hit $15.8 trillion. The total transfer volume currently represents around 70% of the U.S. Gross Domestic Product of around $22 trillion.
Bitcoin transfer volume also surpassed the world’s largest economy’s entire 2010 and 2011 GDP of $15 trillion and $15.5 trillion, respectively. In addition, it is set to soon cross the 2012 and 2013 U.S. GDP levels, which are in the range of $16 trillion.
The massive growth in Bitcoin price is one of major reasons why there has been a durable growth in the transfer volume. Bitcoin transfer volume hit $2.99 trillion in April when Bitcoin price peaked around $64,000.
However, interestingly, when Bitcoin price fell more than 50% from its April all-time high, its transfer volume didn’t plunge. Bitcoin is still settling $236 million worth of transactions per day, equivalent to December levels, when Bitcoin was trading in the $20,000 range.
This could mean that investors’ interest in Bitcoin remains intact despite the gigantic price volatility. This also reinforces the fact that the most valuable cryptocurrency is a viable alternative to the current economic system.
Why is Bitcoin transfer volume surpassing U.S. GDP?
Bitcoin is not only turning out to be an alternate investment vehicle, it is also becoming an alternate to the U.S. dollar and the entire economic system. In 2021, there was an uptick in institutional interest, along with significant growth in retail investments in Bitcoin.
Moreover, U.S. corporations started implementing strategies to hold Bitcoin on their balance sheet to reverse the impact of inflationary fiat dollars and rising consumer costs.
There has also been a wider acceptance of cryptocurrency across the financial system, a phenomenon that will fuel its transfer volume in the days ahead.
Banking giants like Morgan Stanley, Goldman Sachs, and others have recently announced crypto services for their clients. Fintech firms like PayPal and Square are also seeking to expand their crypto services in the days ahead, thanks to increasing customer interest.
In the first two quarters of this year, financial technology companies like Square, Robinhood, Coinbase and Paypal have collectively made billions of dollars in revenue from crypto services.
Bitcoin is penetrating into the financial and economic system
From the auction industry to the real estate sector, Bitcoin has been gaining wider acceptance as a means of payment. Recently, the world’s oldest British-based auction house Sotheby’s sold a rare 101.38-carat diamond for $12.3 million in cryptocurrency to an anonymous buyer.
“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 company Tesla suspended vehicle purchases using Bitcoin for the time being due to environmental factors, Tesla CEO Elon Musk has announced intentions to resume Bitcoin as a valid form of payment once mining processes shift to clean energy.
Moreover, Elon Musk and Jack Dorsey have agreed to discuss Bitcoin at an event scheduled to begin on Wednesday, July 21 at 12:00 PM EST.
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