Cryptheory – Just Crypto

Cryptocurrencies are our life! Get an Overview of Market News

Amout of BTC transactions is already as 71% of US GDP

2 min read

Despite the growth and the consequent halving of the price BTC in 2021, definitely an attractive asset, as evidenced by the transactions processed that year.

According to the Glassnode chart, BTC transactions reached $ 15.8 trillion in 2021, which is 71% of US gross domestic product of $ 22.24 trillion.

Bitcoin transactions account for 71% of US GDP
source: Twitter

Transactions remained high, although the price of BTC fell. This shows that these are consistent investors, not just people who have taken advantage of the hype. It is true that the highest number of transactions per amount transferred surprisingly came in April, when BTC reached $ 65,000. But despite the price reduction, the value of transactions did not fall so much.

Institutional investors, from Tesla to Microstrategy, have certainly contributed.

Tesla invested $ 1.5 billion in BTC in February. Microstrategy continues its “shopping campaign” and buys from time to time. Michael Saylor currently owns more than 105,000 BTCs since its last purchase.

Why BTC transactions could grow further

Despite the half price, which is still 2.5 times higher than last year, there is still great interest in BTC.

The reason is the gradual “institutionalization” of BTC. From September, the BTC will be legal tender in El Salvador, where it will coexist with the dollar. In the United States, there are several mayors who aim to turn their cities into BTC mushrooms.

The last is Scott Conger, Mayor of Jackson, Tennessee, and Miami Mayor Francis Suarez intends to do the same. And let’s not forget the New York election, where Democratic candidate Eric Adams has openly stated that he also wants to turn the big apple into a BTC hub.

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

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

Leave a Reply

Your email address will not be published. Required fields are marked *