Proof Bitcoin is Overhyped

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Paul McMahon

Founder of TokyoDev

BitCoin has gotten a ton of buzz, so when I came across a graph of the number of bitcoin transactions per day, I was flabbergasted: there are only about 60,000 transactions per day. I graphed the number relative to the number of tweets about bitcoin per day below.

Graph
Graph

So there is one tweet about Bitcoin for every three transactions!

Furthermore, this is only the number of transactions, and not the number of times wealth is exchanged between individuals. I suspect a majority of them are transactions of individuals moving bitcoins between wallets, using mixing services, and so on.

Even if a large percentage of these transactions were to represent real transfers of wealth, it is still pitifully low. In the US alone, there are about 70 million credit card transactions per day (26.2 billion in 2012).

For BitCoin to be money, people need to be spending it. But it doesn’t seem like that is the case.

More about the author

Photo of Paul McMahon

Paul McMahon

Founder of TokyoDev

Paul is a Canadian software developer who has been living in Japan since 2006. Since 2011 he’s been helping other developers start and grow their careers in Japan through TokyoDev.

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