Bitcoin’s transaction volume for 2017 has increased 55% as optimism and dissatisfaction with fiat alternatives fuel investment and trading.
Bitcoin’s Sustainable Growth
Figures republished by ARK Invest’s product lead Chris Burniske show impressive yet sustained growth in volume compared to the 2015-16 jump of 118%.
Just updated: #bitcoin transactional volume in 2017 has been $260M per day, $180K per minute. Up 55% from 2016, which was up 118% from 2015. pic.twitter.com/a8Z62iNzr7
— Chris Burniske (@ARKblockchain) February 16, 2017
“…This is transactional volume using (bitcoin) as a means of exchange, very different from trading volume within exchanges,” he noted.
Aside from the repercussions of China’s regulatory shake-ups, there is now a growing number of countries worldwide where deep-seated problems with fiat are driving uptake of Bitcoin as a safe haven investment or transaction method.
Venezuela, India, and Mexico have all made the headlines in recent months, and now a fresh Greek debt crisis is leading commentators to suggest that country’s disgruntled citizens could soon join them in the rush for Bitcoin.
Demand Outweighs Supply
At the same time, Burniske notes the consequences of Bitcoin’s annual rate of supply inflation dropping to 4% last summer may only now be showing.
He quoted entrepreneur and investor Alistair Milne, who tweeted earlier Saturday that “it seems possible that for the first time in its history, Bitcoin’s daily mined supply can no longer meet the demand from new users.”
It seems possible that for the first time in its history, Bitcoin's daily mined supply can no longer meet the demand from new users
— Alistair Milne (@alistairmilne) February 18, 2017
Demand outpacing supply is music to the ears of the endless investors, Milne also noting major US exchange Coinbase had achieved 300,000 new user signups in the past 15 days. In fact, Coinbase total accounts will soon hit 6 million according to their stats:
Greece Buzzword Again
All eyes meanwhile will be on Greece Monday as representatives gather with the European Central Bank and International Monetary Fund, ostensibly as Greece pays back €7.5 billion as part of a previously agreed debt arrangement.
However, renewed warning signs from the country’s government suggest that not only is Greece unwilling to repay on time, but may also run out of cash completely by July, thus defaulting on the remainder of its €31.7 EU bailout.
Nonetheless, it is likely the IMF will contribute to a further €5 billion loan as an interim measure, with a spokesperson telling Reuters, “We will not comment on speculation. The Fund’s position is well known and hasn’t changed.”
So too, it appears, is the opinion of currency speculators and others perceptibly affected by any jitters from Greece.
“Foreseen financial troubles in Greece and Italy could also shore up demand for the cryptocurrency in the coming weeks,” FXDailyReport’s forecast for Thursday reads.
What do you think about Bitcoin’s growth this year? Let us know in the comments below!
Images courtesy of Shutterstock, Twitter, Coinbase
