2. Futures Volume Has Grown Significantly
Another sign that the cryptocurrency is maturing is the steadily increasing volume of its regulated futures market. According to aBitwise research paper published a couple of weeks ago, the average daily trading volume for bitcoin futures in August stood at $ 234, 385, 300. On top of that, the percentage of bitcoin futures volume when compared to bitcoin spot volume rapidly increased from less than 10% in March 2018 to over 20% in August 2019 .
Bitcoin futures volume gradually catching up to spot trading volume. | Source:SEC
This is an indication of growing interest in bitcoin derivatives among speculators and traders who do not necessarily want to hold the asset directly.
3. Bitcoin has Become the Fastest Growing Currency in the World
As more people are drawn into bitcoin, the cryptocurrency is now part of the 30 largest currencies in the world by market capitalization. It just surpassed the Colombian Peso and the New Zealand Dollar. More importantly, it has a lot of room to grow as the cryptocurrency is still small in comparison to gold.
The 30 largest currencies in the world by market capitalization. | Source:James Todaro
In addition, DTAP Capital founderDan Tapiero noted that among the 30 largest global currencies, bitcoin is growing the fastest.
4. Custody of Crypto Is Now Institutional-Grade
Perhaps one of the reasons why more people are flocking into bitcoin is because they can purchase the cryptocurrency knowing that their digital assets are safe and insured by reputable regulatory structures.
More financial institutions offer safe bitcoin custodial services. | Source:SEC
With regulatory bodies overseeing the custodial services provided by platforms such as Bakkt, clients no longer have to worry about hacks or unexpected events such as the death of anexchange’s CEO .
5. Bitcoin’s ROI Outperforms the Pre-IPO Valuations of the Hottest Tech Firms
The final sign of bitcoin’s maturity is its staggering returns throughout the years. The cryptocurrency has rewarded investors who HODL’ed year after year.
Those who bought bitcoin in 2012, when meaningful infrastructure and utility was established, grew their investments by 199 , 527% in seven years. That number surpasses the pre-IPO valuations of tech titans such as Facebook, Uber, Lyft, Snapchat, Pinterest and Twitter.
Bitcoin is the best tech investment of the last two decades. | Source:James Todaro
Bitcoin’s short-term price movement may look awful but from a long-term perspective, the king of cryptocurrencies is starting to look like a mature asset.
Last modified (UTC): September 26, (2:) *********************************************************************************************** (PM)
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