Bitcoin (BTC) On Track To Record Double The Trading Volume Than Gold In 2018
We often hear bitcoin called “digital gold”. Bitcoin took one more step towards replacing gold this week as it was revealed that bitcoin has had twice as much trading volume in 2018 as gold.
A total of $1 trillion worth of bitcoin transactions is estimated to have taken place so far in 2018. Some studies have put the number closer to $800 billion when ignoring transfers between crypto exchange wallets and mixers, while other reports put the number as high as $1.1 trillion.
Gold, meanwhile, is expected to account for “just” $400 billion in trading volume before the end of 2018.
The difference was first spotted by Canadian crypto analyst Kevin Rooke on Twitter, who posted a picture showing the change in trading volume over time.
Bitcoin has been clearing more tx volume than global gold markets since early 2017.
BTC: on pace to process $1.1 trillion in 2018 transactions
Gold: on pace to process $0.4 trillion in 2018 transactions
— Kevin Rooke (@kerooke) August 15, 2018
Rooke was using the recent study on bitcoin transaction volume performed by Coinmetrics. He used data from lbma.org.uk to calculate the total transaction volume of gold.
Bitcoin is on pace to process $1.1 trillion in transactions in 2018, while gold is on pace to process $0.4 trillion. The transaction volume of bitcoin is not just higher than gold – it’s nearly three times as high as gold. Of course, this is just bitcoin transactions as well – it doesn’t take into account other cryptocurrencies – which might bring the total crypto transaction volume up to as much as $2 trillion.
The chart linked by Rooke clearly shows bitcoin’s quarterly transaction volume rising against gold since Q3 2015. In Q1 2017, bitcoin had roughly half the transaction volume of gold. Since then, however, bitcoin has had consistently higher daily average transaction volume than gold. While gold’s daily transaction volume has mostly held steady, bitcoin’s volume continues to increase.
Crypto pundits might tell you that this means bitcoin is better than gold. They might say that it means gold is done. In reality, however, it’s just a neat little stat that doesn’t tell us much. Obviously, gold isn’t used as a daily currency by many people. People don’t buy a cup of coffee with a fleck of gold, for example.
Nevertheless, it’s an important milestone for bitcoin and the crypto market. The Winklevoss twins famously stated that if bitcoin surpassed the gold market, then the price of bitcoin could appreciate 30 or 40 times. Bitcoin officially has higher transaction volume – and better utility – than gold. Now we’ll see if bitcoin can truly overtake gold as a preferred wealth haven.