Bitcoin: A Giant in the Financial Landscape
Bitcoin (BTC) is making waves in the financial sector, already processing a staggering 1% of the world’s GDP. According to statistician Willy Woo, the annual investment flow for Bitcoin stands at a substantial $727 billion. Now, that’s one hefty wallet!
The Battle of Giants: Bitcoin vs. Visa
To put things into perspective, Bitcoin’s current processing power is about 10% of Visa‘s transaction volume, which hits around $8.8 trillion annually. Impressive, right? Woo notes that this investment flow is expected to grow exponentially, by an order of magnitude every four years, potentially catching up to Visa after the next halving cycle!
The Halving Cycle: A Game Changer
With the next halving cycle approaching in May, the excitement is palpable. Historically, these events catalyze rapid growth for Bitcoin. Woo acknowledges that the figures are estimates and might include fluctuations in exchange wallets, but the underlying trend is undeniable.
Wallet Woes: Convenience Over Security?
The growing number of wallets reflects increased interest in Bitcoin. In fact, the number of wallets holding balances of at least 0.01 BTC (roughly $101) has reached record highs, according to Glassnode. However, a troubling trend emerges as more than 90% of institutional investors seem to prefer the quick access of third-party exchanges over the security of self-managed wallets. Talk about a risky romance!
The Proof of Keys Movement: Advocating for Self-Ownership
In response to the security concerns, there’s an initiative called “Proof of Keys” aiming to educate crypto enthusiasts about the importance of controlling wallet private keys. Although the movement’s success remains hard to gauge, it surely adds to the conversation. After all, who wants to put all their eggs in someone else’s basket?
