Bitcoin market now is bigger than gold OTC markets. So far, it looks like gold OTC market total volume in 2018 will be around $446 billion, and Bitcoin’s volume will be $1.38 trillion, which is nearly three times bigger than gold OTC volume.
It’s worth pointing out that while it seems cool at first glance, Bitcoin surpasses gold, in reality, we can call it juggling the numbers. Nic Carter compared two different markets, Bitcoin spot market and gold OTC market, which is significantly lower than the paper-traded gold. It’s like comparing one Walmart store and all small grocery stores in the world, saying 'look, they are bigger than Walmart'.
The daily volume of paper gold exceeds $125.3 billion per day, that's the equivalent of 3248 tonnes, traded each day. Annually it gives us the volume of $45.73 trillion. That's a lot more than BTC markets. Even if we look at BTC OTC market, which is three times bigger than the official one, it would be still ten times lesser than gold main market.
However, it's very positive to see Bitcoin markets growing. Gold is the traditional defensive instrument, used as a shelter during hard times on global markets. If you see hard times coming, buy gold, that's a rule. Can Bitcoin become another defensive asset? We have it yet to discover. Since 2014, global markets haven't seen a global collapse. Now you can find signs of the upcoming crisis here and there, but it's unknown if institutional investors will try to hedge in Bitcoin or will choose something else, and hopefully, there won't be any crisis in a few years. Trade wars and geopolitical conflicts increase the global risks, but it all may settle down soon.
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