Bitcoin has reached a new landmark.
In a tweet on Thursday, an on-chain researcher at ARK Invest, David Puell, sharing a Glassnode chart, highlighted that the total value transacted on the Bitcoin network has surpassed $100 trillion.
Image source: Twitter
However, Puell notes that the figure is just an interesting statistic. He explains that the accurate measurement of cumulative activity on the network given by what Glassnode terms entity-adjusted metrics, which filters out on-chain activities that do not represent exchange between two separate entities (one entity moving Bitcoin across multiple wallets they own), sits around $7.3 trillion.
“Hold your horses, cowboys, and cowgirls. The above is just a landmark and a factoid, and should be read as such.
For true measurement of cumulative economic activity, 7.3 trillion USD (change-, entity-adjusted) is the mark,” Puell tweets.
Hold your horses, cowboys and cowgirls. The above is just a landmark and a factoid, and should be read as such.
For true measurement of cumulative economic activity, 7.3 trillion USD (change-, entity-adjusted) is the mark. pic.twitter.com/oPnuDfUs3S
— David Puell (@dpuellARK) August 24, 2022
Notably, the statistic can be seen as quite important. First, it represents a continuous growth in the adoption of Bitcoin, which was seen as a Libertarian pipe dream in its early days.
The crypto markets, especially Bitcoin, are now taken more seriously across the globe. As a result, the emerging asset class is now seeing more adoption from governments and legacy financial institutions.
It is worth noting that BlackRock, the largest asset manager in the world with over $10 trillion in assets under management (AUM), is working to grant clients more Bitcoin exposure. As reported by The Crypto Basic on August 11, the asset manager has launched a private trust for clients, offering them direct Bitcoin exposure.
Additionally, Bitcoin has become legal tender in at least two countries and several independent regions. In April this year, the Central African Republic announced it was adopting Bitcoin as legal tender, becoming the second country to do so, joining El Salvador. Some factors indicate that other countries are likely to follow suit, as financial authorities representing 44 countries participated in El Salvador’s international Bitcoin conference.
Moreover, several governments are creating policies to promote blockchain innovation and investment as they see its potential as the next economic frontier. Notably, the United Arab Emirates has granted licenses to a flurry of crypto firms in recent months with the added incentive of lax tax rules.
It is worth noting that this growth in adoption is happening despite the recent crypto winter that has seen Bitcoin decline by over 70% from its highs of $69k. Bitcoin is trading at the $21,686.83 price point, up 1.56% in the last 24 hours.
Follow Us on Twitter and Facebook.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.