BIS Study Finds Standard Bitcoin Transfer Estimates May Be Overstated by Up to Six Times
(15 days ago) · 1 source · Summarized by CryptoBipto
A study by the Bank for International Settlements (BIS) has found that commonly cited Bitcoin transfer volume figures may overstate actual economic activity by as much as six times. The discrepancy stems from how standard metrics count change outputs and internal wallet movements as genuine transfers. The BIS research proposes adjusted methodologies to more accurately reflect real Bitcoin transaction volumes.
WHY IT MATTERS
When you send Bitcoin, the system works a bit like paying with cash. If you owe someone $15 but only have a $20 bill, you hand over the $20 and get $5 back as change. Bitcoin works similarly — it often sends a full chunk of coins and returns the leftover 'change' to your own wallet. Most tracking tools count both the payment and the change as separate transactions, which makes it look like more money is moving around than actually is. The BIS, a major global financial institution, says this overcounting can make Bitcoin's transfer volumes appear up to six times larger than the real economic activity. This matters because inflated numbers can mislead regulators, investors, and researchers about how much Bitcoin is actually being used for real payments and transfers.
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- cryptoslate.com
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