Bitcoin Transaction Volume Surpasses All Expectations• February 1, 2022 9:17 pm • Comments
A recent report from NYDIG recorded that the transaction volume for Bitcoin in a single quarter in 2021 had recently exceeded the total amount of all transaction volume for all credit card networks combined for an entire year.
This indicates exponential growth that the network has experienced especially when compared to the volume just a few years ago and investors are willing to bet that Bitcoin will continue to surprise especially in the upcoming years and Bitcoin experiences massive adoption internationally.
The report states that Bitcoin now has a total of $3 trillion worth of payments in 2021 which is a number that far exceeds any traditional digital payment system.
Bitcoin Network Transaction Volume Surpasses American Express: Research
A recent NYDIG report found that Bitcoin had settled more transaction volume in Q1 2021 than “all credit card networks combined for the entire year” when including intra-network transactions.#BTC pic.twitter.com/Vsa5pTy6PN
— Blockverse (@Blockverse3) February 1, 2022
The report authors, NYDIG global head of research Greg Cipolaro and research analyst Ethan Kochav, also found that the Bitcoin network had settled more transaction volume in Q1 2021 than “all credit card networks combined for the entire year.”
“This is astonishing growth, in our opinion, for a payment network that just had its 13th birthday,” they wrote. American Express issued its first card in 1958, and Discover in 1985.
However, the Bitcoin network still has a way to go before catching up to Visa and Mastercard, which processed $13.5 trillion and $7.7 trillion in transactions, respectively.
It also should be noted that the study only looked at the United States dollar value of transaction volume rather than the actual number of transactions.
Therefore, it’s likely that most of the Bitcoin (BTC) transactions were simply users purchasing, swapping and selling their BTC rather than using it to pay for anything.
Examining the data though, its important to notice that the growth of bitcoin in transaction volume is definitely not linear as there are periods where there isn’t much growth and then there are also periods where the growth is astronomical.
However, when you average the years out, it is clear that the rate of growth is consistently increasing for the transaction volume which correlates very heavily with the actual price of Bitcoin.
As of right now, the way Bitcoin volume is measured cannot be measured directly but rather relies on data providers to provide accurate estimates on the true amount of volume.
A lot of the volume can be mixed in with volume that occurs on crypto exchanges though which means that the recorded total volume probably is not 100% accurate.
With growing retail and institutional popularity, the Bitcoin network witnessed a monumental jump in the total number of users during 2021.
The latest jump in annual transaction volume was backed by strong whale movements and exchange flows.
While the price of the digital asset has dropped substantially in the last few weeks, the latest surge in exchange outflows indicates that BTC whales have started moving the crypto asset away from trading platforms.
“40,785 BTC coins were moved away from exchanges in the past week. This was the highest week of Bitcoin exchange outflow since the 2nd week of September.
The continued trend of coins moving to cold wallets is historically good for long-term price movements,” Santiment, the on-chain crypto and blockchain analytics firm, noted.
Business is booming!
— Crypto Top News (@TopCrypto_News) February 1, 2022
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