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The Bitcoin network hit a new milestone on Oct. 6, settling $31 billion in transactional value. The new all-time high caps off an incredible rise in settlement value since the start of the year.
The bitcoin network settled a record $31 billion in a single day on Oct. 6, 2021. This marks a new all-time high for settlement numbers on the network. For some perspective, this represents a 40x jump in settlement value since the start of 2020.
Since then, however, there has been a noticeable drop in settlement value, reaching figures of around $11.6 billion in the days that followed. Still, it marks a strong rise for bitcoin usage since the start of 2020, where the figure was well under $10 billion.
Several notable figures in the blockchain and cryptocurrency space commented on the milestone, including Morgan Creek co-founder and partner Anthony Pompliano and market analyst Willy Woo. Pomp, as he is often known, said the global, decentralized payment system continues to become more dominant.
Woo compared the settlement value to the use of payment processors Visa and MasterCard in the United States. Excluding the Lightning Network, Woo said that Bitcoin was, “presently doing ~$190k per second. Compare this to $130k per second by Visa for US customers and $55k per second for Mastercard.”
Many companies, both inside and outside the space, are commenting on this increased use of cryptocurrencies. Capgemini recently released its World of Payments 2021 report saying that cryptocurrencies will be the dominant method to send remittances, with 45% of customers using crypto to transfer money.
Developing nations, in particular, are set to benefit from bitcoin. As the country of El Salvador has already noted, cryptocurrencies can significantly reduce the costs associated with sending money abroad. Other countries, especially those in Southeast Asia, will also begin to adopt this method, as the world keeps an eye on El Salvador.
Bitcoin adoption on a roll
Such comparisons reflect the tremendous progress bitcoin has made in just a few years, after gaining some legitimacy from the wider investment world. Furthermore, governments are also beginning to accept bitcoin and cryptocurrencies as legitimate assets.
While large-scale regulation is yet to come into effect, many believe that this will only strengthen bitcoin’s performance in all aspects. They state that this will allow more on-the-fence investors to enter the market, protecting them with regulation-inspired measures.
However, Bitcoin’s adoption will be predicated on its ability to handle large volumes of transactions. Layer 2 scaling solution Lightning Network has been making progress in this regard, with its usage in 2021 rising exponentially.