Majority of Bitcoin Transactions Have No Economic Value

Bitcoin was able to hit $8,507 on Tuesday. And though it is currently trading somewhere around $8,100, Bitcoin is up in the past few days. In fact, it was up by 45{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff}. A month ago, it was a total opposite. It looked like that Bitcoin was about to hit $5,000. However, Bitcoin was able to break the $8K ceiling this week and it appears that it is set for another bull-run.

But let’s have a clear image of what’s happening in Bitcoin. Things are looking good as there’s the anticipation for the approval of Bitcoin ETFs by the US Securities and Exchange Commission. In addition to this, the US Securities and Exchange Commission has considered Bitcoin and Ethereum not as securities. Therefore, both cryptocurrencies shouldn’t be subject to the rules and regulations applied to stocks and other financial instruments.

Bitcoin Transactions Mostly Nothing to Do With Buying?

In a recent report, it was said that two-thirds or around 66{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of transactions on the Bitcoin network have nothing to do with buying services and services or even trading the virtual currency. This isn’t something that is only present in Bitcoin. The same is happening in Ethereum. In fact, 45{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of transactions in Ethereum’s network can be considered non-economic.

According to Elementus Inc, there was a time when 98{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of transactions on Cardano had no economic value whatsoever.

Though it is quite bullish today, one of the problems encountered by the industry, in general, is the anonymity that it provides to its users. The lack of transparency has been seen by many as a hindrance to the potential acceptance of either individual investor or institutional investors.

Charlie Morris who is the one who manages $300 million for London-based Newscape Capital Group mentioned that “If this space is not a joke but serious, then people need to know more”. He also added that “You’d want to know the facts. If institutional money is going to come into Bitcoin, they’ve got to understand what they are buying”.

Looking at the Big Picture

Cryptocomposite.com by Charlie Morris alongside Elementus are some of the new efforts that are now uncovering things that we need to know regarding cryptos.

Max Galka who is the chief executive officer of Elementus mentioned that “You are sort of looking at a tiny piece of the blockchain through a keyhole, and you are not seeing the big picture”. He also mentioned that “It’s really hard to understand the context around it. What we do is we allow you to get the full picture”.

Given that majority of transactions happening on these cryptocurrencies show no sign of economic value, could it actually be considered as an alternative to money today? European Parliament recently mentioned that cryptos can be used as an alternative for money.

Though there are so many applications for blockchain and digital currencies, many are still using cryptos to anticipate and to gain some profits. With prediction by experts today that Bitcoin is about to surpass its last year’s all-time high, is this scenario that is really expected from the cryptocurrency market?