Bitcoin will soon surpass the daily trading volume of Apple, the US$784 billion technology giant, Jens Nordvig, founder and CEO of Exante Data, told CNBC earlier this week.
Apple, the most liquid stock in the world, has a daily trading volume of US$4 billion. While the daily trading volume of bitcoin is just under US$1 billion at the time of reporting, previously, before its major price correction caused by the Chinese government’s imposition of a nationwide ban on local bitcoin exchanges, the daily trading volume of bitcoin remained relatively stable at over US$2 billion.
But as the price of bitcoin dropped from over US$5,000 to US$3,700 due to uncertainty over Chinese bitcoin exchange markets, the daily trading volume of bitcoin also fell by nearly 50 percent. In the upcoming months, as the global bitcoin market recovers from the exit of Chinese bitcoin exchanges, the price and daily trading volume of bitcoin will likely surge at a rapid pace.
As Charlie Shrem noted, the relevance of the Chinese market has decreased significantly and the vast majority of bitcoin traders have begun to realize that the Chinese bitcoin exchange market only accounted for 10 to 13 percent of global bitcoin trades prior to the nationwide bitcoin exchange ban. Shrem stated:
“This China FUD is playing on all your fear, uncertainty and doubt. China has no real effect on the future of bitcoin. Bitcoin is about censorship free and an alternative non govt controlled financial system. China’s relevancy is diminishing by the day. They overplayed their hand and there is a reason they are being ambiguous. The only power they have over bitcoin is the power you give them. Bitcoin puts a financial system back in our control.”
In an interview with CNBC, Jens Nordvig explained that various indicators demonstrate that the current US$3 billion daily trading volume of the cryptocurrency markets will increase exponentially over time, and that it will soon surpass the trading volume of Apple. If the global bitcoin market continues to recover from the Chinese bitcoin exchange controversy at the current pace, the trading volume of all cryptocurrencies including bitcoin will actually surpass that of Apple.
“Cryptocurrency trading volume is now more than of $3 billion per day on average, and will likely soon surpass that of the world’s most liquid stock: Apple ($4 billion per day). We do not believe that one can predict with confidence at this point that any given cryptocurrency will continue to thrive and gain status as an alternative to traditional currencies in the long term. But we look forward to using the information from an increasingly active cryptocurrency market in our tracking of global capital flows, when appropriate,” said Nordvig.
Already, the demand for bitcoin as a safe haven asset, store of value, and long-term investment is growing at an exponential rate in countries including Japan, the US and South Korea. More importantly, large-scale institutional and retail traders are focusing on investing in bitcoin through regulated channels. As regulated exchanges such as Gemini and major financial institutions like the Chicago Board Options Exchange successfully introduce trading platforms for institutional investors, the daily trading volume of bitcoin will further increase.
Image License: Pixabay
Image(s): Shutterstock.com
