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Fitch: Bitcoin Remains Small in Comparison to Payment Processors and Currencies
April 2, 2014 / 2:41 PM / 4 years ago

Fitch: Bitcoin Remains Small in Comparison to Payment Processors and Currencies

(The following statement was released by the rating agency) NEW YORK, April 02 (Fitch) Despite significant increases in its use as a payment system and attention in the marketplace, Bitcoin is small relative to both traditional payment processors and global currencies, according to a Fitch Ratings Why Forum commentary published today. Total Bitcoin transactions averaged $68 million per day in February 2014, a more than 10 fold increase compared to February 2013. By comparison, payment processors Western Union and PayPal averaged $225 million and $492 million respectively in transaction volumes per day during 2013. Bitcoin's transaction volumes are less significant compared to the major credit card companies. From a trading perspective, Bitcoin transaction volumes relative to the stock of outstanding bitcoins resemble those of equity securities. There was about $68 million in average daily transaction volume in Bitcoin in February 2014 relative to its $6.75 billion money supply, or approximately 1% of total market capitalization was traded per day. Over the same period, an analysis of a sample of the largest U.S. equity securities shows that daily trading volumes were approximately 0.6% of total market capitalization. Fitch also notes that Bitcoin's market capitalization is less than 1% of total U.S. Dollars, and is closer in size to smaller currencies such as the Guatemalan Quetzal. The full commentary 'Sizing Up Bitcoin' is available on Fitch's Why Forum site '' Contact: Brian Bertsch Director +1-212-908-0549 Fitch Ratings, Inc. One State Street Plaza New York, NY 10001 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available at ''. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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