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Nic Carter, a highly respected cryptocurrency researcher, said that Bitcoin outperformed the OTC gold market in liquidation volumes, even with a 70% decline in price.
Bitcoin as the best medium of exchange
According to the London bull market compensation statistics (LBMA), five major clearing members of LPMCL, including HSBC, ICBC Standard Bank, JP Morgan, Scotiabank and UBS, the global over-the-counter (OTC) gold market is on track for $ 446 billion in 2018, after liquidating less than $ 30 billion on a monthly basis since January
On the contrary, based on data provided by Coin Metrics, a cryptocurrency market data provider cited by Carter, the Bitcoin market has already processed $ 848 billion this year and is going to exceed $ 1.38 billion by the end of the year.
Given that LBMA represents at least 70% of the total volume of the OTC of gold, to $ 848 billion, Bitcoin has Eight months, the expected liquidation volume of the entire gold market has already been higher than expected
explains: "I am prudently evaluating the London OTC market for gold, overseen by LBMA, at 70% of global volumes They publish compensation statistics, with these I can estimate the total net volume of gold regulation set at $ 446b for 2018 (based on 6 months of data.) Conservatively, (correct estimates), Bitcoin has established $ 848b this year, and is on track to resolve $ 1.38 T. Bitcoin, it seems, has quietly surpassed the OTC gold market in liquidation volumes. "
The comparison offered by Carter did not include Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin and other major cryptocurrencies in the global market. For example, Ethereum establishes transactions almost twice as much on a daily basis than BTC.
Generally, transactions on the Ethereum network are lower than Bitcoin because most payments are initiated by decentralized applications to cover the costs involved in processing information.
The huge discrepancy in the volume of the OTC market for gold and the volume of Bitcoin showed that the mainstream started to recognize and adopt Bitcoin as an important store of value and a medium of exchange, thanks to its considerable advantages over gold such as fungibility, liquidity and transportability.
So, what's the bitcoin holding up?
Nikolaos Panigirtzoglou, senior analyst at JPMorgan, said in December 2017 that cryptocurrencies could evolve into one of the major asset classes and compete against traditional assets such as gold if financial instruments are publicly publicly traded and tightly regulated as futures and exchange-traded funds (ETFs) to US markets.
Explained:
"In general, the future introduction of future bitcoins has the potential to elevate cryptocurrencies to an emerging asset class.The value of this new asset class is a function of the width of its acceptance as a reserve of wealth and as a means of payment and simply judging from other stores of wealth such as gold, cryptocurrencies have the potential to grow further from here. "
Therefore, if the highly anticipated proposal of the ETF CCOE Bitcoin will be approved by the US Securities and Exchange Commission (SEC) by February 2019, the last term of the ETF, then it will open more investors to the cryptocurrency market. [19659004] Close-up image of Shutterstock.
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