3 ms·
> People use cryptocurrency today to trade and to transfer value. Do they though? I recently did the math and people mostly seem to use crypto markets for what
by donkeyd 5y ago
> People use cryptocurrency today to trade and to transfer value.
Do they though? I recently did the math and people mostly seem to use crypto markets for what you described. Only about 10% of Bitcoin transactions actually have any blockchain involvement, the rest is all handled internally by markets. And that 10% was on a good day, there are many days when that number is much lower.
- trophycase 5y agoWhat does that even mean? All bitcoin transactions use the blockchain. If by chance you mean "trades on exchanges" then the same could be said about nearly any financial instrument. A majority of movement is done by traders, market makers, etc.
- donkeyd 5y ago> All bitcoin transactions use the blockchain. Depends on how you define bitcoin transaction. The majority of BTC <> USD transactions (or any other currency) has no involvement of the blockchain at all. They happen purely within the databases of the markets. > the same could be said about nearly any financial instrument Well, that's kind of my point. People say that Bitcoin, the technology, is being used for lots of transactions already. However, most BTC, the cryptocurrency, transactions don't use the Bitcoin blockchain at all. They use the same basic technology that traditional banks and markets use. So where's the value add in the blockchain if it isn't being used?