What is the Bitcoin estimated Transaction Volume? What does it mean?
Thanks to Blockchain.info, the eyes of the Bitcoin network, we can view many great data points about how Bitcoin is being used and adopted. One of the many great charts they offer to the public for free is the Estimated Transaction Volume? According to Blockchain, this chart is similar to the total output volume with the addition of an algorithm which attempts to remove change from the total value. This may be a more accurate reflection of the true transaction volume. An overall increase in Bitcoin volume would indicate greater adoption and more users of the blockchain payment system.
The Bitcoin network has only been in place for 5 years and is showing incredible signs of future increases in volume. In 2014 many large and small businesses decided to take the plunge down the rabbit hole and join what many are calling the greatest economic and technological revelation in history.
Paypal announced they are allowing merchants that use Paypal to accept Bitcoin for digital goods and they are building systems to make it part of their overall services for customers and businesses alike. “This is a huge endorsement to the digital currency community,” said GoCoin CEO Steve Beauregard. As the adoption grows and more people are using it, the volume will increase, and Paypal appears to be a major catalyst in that movement.
Many merchants such as Overstock.com, Newegg.com, TigerDirect.com, Microsoft, and many more have announced this year that they are accepting Bitcoin as well. The impact to Bitcoin’s total volume has not fully shown the effect of these announcements but when they do appear, it will create a major swing of using this currency as an every day payment option, and should increase the demand and price.
There are other large merchants such as Apple ( Apple Pay ), Wal-Mart ( CurrenctC ), Best Buy, and others that are trying to create their own currencies but already are seeing the problems of not using a secure blockchain technology. Apple Pay and the CurrenctC systems have both been hacked because they attach their systems to credit card databases which we all have heard many times now are not secure enough.
The Bitcoin St. Petersburg Bowl, a postseason ESPN college football game matching up the Atlantic Coast Conference against the American Athletic Conference, is being sponsored by Bitpay and others helping increase visibility to the masses.
According to a report on pymnts.com, the Bitcoin network accounted for a total of $296 million in spending on Black Friday and Cyber Monday making it the ninth largest payment network.
Bitcoin will become easier to use, adopted faster, and accepted at more places by having simpler one touch wallets, mobile apps, and integration with other systems which many developers are now creating. Understanding how Bitcoin works is not really a major factor in the growth of this currency. How many of us know how cell phones actually connect to cell towers, wireless networks, and send data? If problems arise with our phones most of us take our phone into the store and ask them to replace/ fix it, or we call customer service if our text messaging is not working for even 5 minutes?
There was an increase in Bitcion adoption in 2014 and every year previously. The market price has also shown an increase and stability. With an increase in demand and a finite amount of coins available, what will the price of Bitcoin be in 2015? Will the estimated transaction volume be a major indicator for increases in market price and overall adoption?
- December 4, 2014 – $296 million was spent across the bitcoin network on Black Friday and Cyber Monday.