- Bitcoin processed $8.9 billion in a single hour, highest in its history.
- It shows how BTC can grow as an established store of value.
- VC investors foresee BTC evolving into a major asset due to its ability to transfer value.
In a single hour, the Bitcoin network processed $8.9 billion in transactions. While most of it was change in addresses, it showed a glimpse of how BTC could perform as an established medium of exchange in the long-term.
According to Glassnode co-founder Rafael Schultze-Kraft, it was the highest hourly volume of bitcoin (BTC) in terms of USD in its 11-year history.
$8.9 billion in #Bitcoin were moved on–chain in a single hour this afternoon.
It's the highest hourly USD transaction volume in Bitcoin's history 🔥 pic.twitter.com/pWdXBszuIc
— Rafael Schultze-Kraft (@n3ocortex) December 4, 2019
Large Transactional Capacity Shows Potential of Bitcoin as Store of Value
Based on on-chain data from Blockchain.com, the total daily USD transaction value of bitcoin increased from around $250 million in 2017 to over $1.5 billion in 2019.
The Bitcoin network is starting to process a significant amount of transactions on a daily basis, which is set to rise even higher over time if the BTC price rises.
The sudden movement of nearly $9 billion in transactions on December 4 does not reflect the current price trend of BTC or the state of the market.
Large bitcoin holders tend to switch addresses or use new addresses regularly as a practical security measure.
What it shows is the ability of the Bitcoin network to settle billions of dollars in value in a short period of time, a characteristic that would position BTC to compete against traditional safe-haven assets.
Venture capital investors like Blockchain Capital’s Spencer Bogart have said in recent months that the strong fundamentals of bitcoin as a medium of exchange and store of value will fuel its long-term prosperity.
Earlier this week, CCN.com reported that despite China’s crackdown on cryptocurrency exchanges, Bogart sees BTC rising in the years ahead as it continues to grow as a store of value.
A long way to go
Although bitcoin’s capacity is growing and more USD value is being processed on a daily basis, infrastructure supporting the asset class has to strengthen.
Bakkt and other institutional platforms have only emerged in 2019, and a variety of custodians are necessary to support bitcoin’s growth as an established safe haven asset.