According to a CCN report based on compensation statistics by the London bullion market (LBMA), the global off-exchange gold (OTC) market peaks by around $ 46 billion by 2018. So far this year, the industry has established less than $ 30 billion each month. In contrast, the bitcoin market has already doubled, with $ 848 billion deposited so far in 2018 according to Coin Metrics and cryptocurrency analyst Nic Carter. If this pace continues, the world's largest digital currency by market capitalization could pay 1.38 trillion dollars by the end of the year. All this has happened despite the fact that the value of bitcoin has dropped significantly since the beginning of 2018.
LBMA a Major Player
LBMA represents over 70% of the global volume of OTC gold. Nevertheless, bitcoin has already gained more value in the first two thirds of the year than the expected regulation of the entire gold market for 2018.
As explained by Carter, his estimate is based on on the London OTC market, which accounts for 70% of gold in global volumes. Based on LBMA compensation statistics, which Carter used to estimate the "total net settlement volume of gold set at $ 446 billion for 2018". He adds that, in a prudent manner, "bitcoin has allocated $ 848 billion this year, and is about to adjust $ 1.38 trillion." The bitcoin, it seems, has quietly outperformed the OTC gold market in the volumes of the settlements. "
Other digital currencies remain a mystery
Carter's comparison did not include other important actors in the world of digital tokens, including ethereum, ripple, litecoin or bitcoin cash. However, at least in some of these cases it is likely that bitcoin is not the only one to overcome the gold settlement. For example, ethereum establishes about twice the transactions on a daily basis compared to BTC. However, since transactions tend to be lower than bitcoins, it is hard to say exactly how ETH compares with gold in this way.
One of the biggest questions, given this information, is why bitcoin has struggled to recover the record values since the end of 2017. Of course, there are many factors, including reticence from the SEC, # 39; indolence in the adoption of traditional payments and more. Nevertheless, this data shows that bitcoin has developed an enthusiastic and active group of participating investors.
Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation of Investopedia or the writer to invest in cryptocurrencies or ICOs. Since the situation of each individual is unique, a qualified professional should always be consulted before making any financial decision. Investopedia does not make any representations or warranties regarding the accuracy or timeliness of the information contained in this document. On the date this article was written, the author owns bitcoins and ripples.