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Bitcoin

Bitcoin transactions represent 71% of US GDP

Despite its ups and downs, bitcoin remains a decidedly attractive asset in 2021, as evidenced by transactions processed this year.

According to a graph shown by glassnode, bitcoin transactions in 2021 alone totaled $15.8 trillion, 71% of the US gross domestic product (GDP) of $22.24 trillion.

Interestingly, transactions remained high even when the price of bitcoin fell. This shows that these are consistent investors, not just people who took advantage of the hype. Admittedly, the largest number of transactions per amount transferred, not surprisingly, came in April, when bitcoin hit $65,000. But despite the setback, the value of transactions did not drop as much.

Institutional investors, from Tesla to Microstrategy, certainly contributed to this spike in transferred value.

Tesla invested $1.5 billion in bitcoin in February. Microstrategy, on the other hand, continues its “buying campaign”, buying bitcoin from time to time. Michael Saylor’s company currently owns more than 105,000 BTC, which at the current price of US$31,500 is equivalent to US$3.3 billion.

Why Bitcoin Transactions Can Grow Even More

Despite the drop, which is still 2.5 times higher than last year, bitcoin continues to hold a high interest in itself.

This is due to the progressive “institutionalization” of bitcoin. As of September, in fact, the BTC will be legal tender in El Salvador, where it will coexist with the dollar. In the United States, on the other hand, there are several projects by mayors to turn their cities into bitcoin hubs.

The most recent was Scott Conger, Mayor of Jackson, Tennessee, and Miami Mayor Francis Suarez, who plans to do the same. And let’s not forget the elections in New York, where Democratic candidate Eric Adams has openly declared that he also wants to make the Big Apple a BTC capital.

All of this justifies the growing popularity among institutional and retail investors. In the long term, this could support the circulation of BTC and with it the growth of the overall value of the transactions.

Source: cryptonomist

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