Cryptocurrencies

Up to Two-Thirds of Bitcoin Transactions Have No Economic Value

  • Services developing tools to add clarity to blockchain data
  • Value of activity about half of what appears, researcher says
CME CEO Terry Duffy discusses cryptocurrency trading.Source: Bloomberg)
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On any given day, as much as two-thirds of the transaction activity registered on the Bitcoin network has nothing to do with buying goods and services or trading the virtual currency.

Volume figures are being influenced by a range of other factors such as so-called mixers reshuffling balances between their own accounts, mining pools disbursing coins to members, outright scams such as spoofing and market manipulation, according to analytics provider Coinmetrics.