Bitcoin is to end 2016 on a high note as it will probably finish as the top performing currency of the year. A title that it will retain from the previous year.
The Bank of International Settlements (BIS), which is an international financial institution that is owned by the world’s central banks, does not consider something like bitcoin in its triennial reports.
According to the Bank of International Settlements (BIS) survey, U.S. Dollar was the most traded currency by value in 2016. The US Dollar was followed by the
Euro, while Japanese Yen held the third place, as clear in the chart. Note that trading volume adds up to 200%, because each currency trade has a pairing.
And the Chinese Yuan rose to the 8th most traded currency in the world, for a total share of 4.0%. That means its share has doubled since the 2013 BIS report.
Bitcoin, despite an upward dash, was behind its fiat counterparts by volume.
About $3 billion of bitcoin has been traded in the last 30 days. This averages out to $100 million per day. While the total amount of forex transactions per day is $5.1 trillion. Meaning, the estimated daily turnover of just the Chinese Yuan is $202 billion per day.
Therefore, total forex is 51,000x the size and just the Yuan has approximately 2,000x the volume traded of bitcoin.
Bitcoin still has a long way to go before it can measure up to its fiat counterparts when it comes to trading volume. But what makes 2016 an important year for bitcoin is the support it rallied, as clear by its upward climb in the latter half of the year.
Bitcoin reaffirmed its status as a reliable asset this year and managed to attain stability and demand, finally overcoming the market volatility following the Bitfinex hack.
Image courtesy of xakep.ru