Bitcoin Forum

hi

is there a way to find out how many BTC are really used to buy things.

e.g the amount of BTC that are transfered through bitpay transactions and similar services.

thank you

It does not make sense to use bitcoin to buy things so this would be a horrible way to measure usage. I would guess that makes up less than 1% of usage of bitcoin.

then for what is bitcoins used? what do you think? just for trading?

and other way to measure the usage could be to monitor DNM. To become a feeling of the amount of BTC this is used to buy things.

All transactions of Bitcoin are made public on the blockchain but as to whether you'll be able to determine what was used to purchase what is another headache you'll have to deal with. It's not possible as far as I know.

What are the uses of fiat currency ,you can trade ,purchase things and so on and that is the exact use of bitcoin and people use it for many different things and it is really impossible to find out what percentage is used for what and so on,but every transaction are in the ledger.

There is no way, But you can assume if there is a very little percentage of the amount of the service address to be used for buy things. And I don't get a point from your title. Does it have a relationship with your topic?  ???

I think he is talking about buying things separated used for buy things and separated for other things. ? am i right op..
I think there is no other site that can give you such information only blockchain can gives you all transactions. history. bitpay can not gives you all transaction history for buying things..

I use bitcoins to buy things. That has to happen or bitcoin has no utility and without utility, it has no value.

There's no way to find it out, bitcoin is currency and an investment. We cannot determine if a transaction is from trading or buying of goods and services. Just like in fiat, we can use it for everything as usual the same thing with bitcoin. And I guess there's no need or help for doing this type of research and additional knowledge.

Getting a percentage of people who uses bitcoin for buy things will be something difficult, I think that the way for getting it is with surveys in this forum because the information in the blockchain is not usefully for your study
 

Its all upto the product you want to buy in online site where btc accepts. Even you can make 5$ recharge for your phone via bitrefill site through out the world. If you wish to use btc in online I suggest you to sign up in purse.io site where you can purchase all the things in amazon via this site.
If you are using btc means you eligible for 15% discount for any of your order.

I think there is no way you can determine or track how many bitcoins is being used to buy stuffs online and how many bitcoins are undergoing payment processor for each shops and merchants that accepts bitcoins as payment in for their services.Even blockchain records would not know on how that bitcoins is being spent or used.

We can't really trace the real btc usage. There is no such counter that detects the exact numbers or even estimate. We already know and notice that bitcoin is already accepted and used by many countries, mostly probably and there are lot of online merchants that adopt and supports bitcoin for their business.

Best thing I could think of is check what's going on with said businesses you're looking at and see if they have any reports or statements about their finances. If they don't, see how long they've been in business and look for any news articles about them expanding. If any of this exists, it means that the usage is relatively high.

Also the fact that people around the world keep moving Bitcoin at the rate they do is pretty impressive to say the least.

first visit their website (bitpay or any of others) and see if they have some kind of statistics on their website, if not you can contact them and ask them nicely if they could release some statistics in their blog or on their website.
for example some bar chart showing the amount of bitcoin that was sent through bitpay or any other merchants each month/week/day

edit: did a quick google search for "bitpay stats" and this came up:
https://blog.bitpay.com/bitcoin-a-new-global-economy/
enjoy:
https://ghost-storage-production.s3.amazonaws.com/2015/Aug/BitPay_LatAm-1438718271536.png

At one stage Coinbase or a payment processor has published a chart to show how their clients are using their bitcoins. It even shown how some people use bitcoins to buy fast food and what percentage was used to buy different things. I cannot find the graph now, but it should still be out there.

Unfortunately you will only get that with regulated services and not for people who use bitcoins in direct transactions.

Here's an idea.

Blockchain.info has some great, basic charts and stats about bitcoin. Let's use this data to come up with an equation.

Here's what we need:

• Total amount of bitcoin in existence (market capitalization, A)
• Total amount of bitcoin that is transacted over a period of time (transaction monetary volume, B)
• Number of days between new transactions for each bitcoin (transaction turnover, C)

The equation is (B * C) / A = percentage of Bitcoin used for purchases of goods/services.

1) The market capitalization represents the value of all the bitcoin that's been mined. Today that number is $18.7B (https://blockchain.info/charts/market-cap (https://blockchain.info/charts/market-cap))

2) Let's assume that nearly all of the transaction monetary volume in any given day is used to buy goods or services. Bitcoin that's being saved or hodled (if you prefer) doesn't exchange wallets. The transaction volume (exchange traded volume per day) ranges from $6M to $111M between late 2013 and current (when activity started to pick up consistently). Now this is a daily number so we need to find a median - simply the median between these two numbers is $58.5M. So on average the daily transaction volume is above or below $58.5M

3) Let's assume that the transaction turnover, the amount of time between purchases for goods/services with the same bitcoin is 1 transaction per week. If we multiply the $58.5 median daily volume by 7 days, we get $405M. This is our average amount of bitcoin used to purchase goods and services.

So, ($58.5M * 7) / $18.7B equals 2%.

With these rough assumptions I'm saying 2% of the bitcoin in existence is used for purchasing goods over any 7 day period.

What do you think? This seems low to me. Let's debate how we could change the assumptions and let's start with how much time (on average) exists between two transactions with the same bitcoin. If we increase that number, we increase the percentage.

Do you need Market Capitalization?

Isn't the number just about the daily volume of transactions multiplied by the average number of days between transactions with the same bitcoin?

I bet the average is greater than 7 days. Some companies are conducting daily transactions, some companies are conducting weekly transactions (like signature campaigns) and a lot of regular folks are just buying things occasionally...maybe once a month.

I agree with your assumption that the transaction volume per day is 99% due to purchases for goods and services. I bet most people are not exchanging between their own wallets much.

what? i had to step in here, because what you said it's wrong on so many level, bitcoin usage of course must be measured with the purchase you made with it

not with dumping for fiat or trading, or anything else, after all bitcoin is also a currency not only a tool for speculators or store of wealth


this don't really tell us how many bitcoin are being used to purchase stuff with them, those transaction can be very small like 0.01-0.1 range

it's better if you see the amount of bitcoin sent throught bitpay

I don't think bitcoin service providers similar to bitpay won't reveal such data regarding the bitcoin usage on purchasing. The reason is that they make transactions on commission basis. Real bitcoin usage is found increased as the acceptance on stores have increased than the past.

That's hard to determine of how many bitcoinBTC used to buy things, because the only things I know was that all transaction are being made everyday in the blockchain. So as long we can used bitcoin for buying a things online, and buying coins on the exchange site lets continue to patronize it. :)

According to the official data, the current marketcap bitcoin is about $16.5 billion, so I think this is the biggest and already beat paypal.

I don't know of a way to find how much bitcoins are being used to buy from "mainstream" outlets. I've only used online wallets and they don't have stats on where coins are being used. Even if there is a way, that would not include bitcoins used for buying things directly from the vendor. The variety of items available for buying in bitcoins in stores and physical shops are still not that large so there may still be people using bitcoins in f2f transactions.

Maybe a better way to measure this is just look at how much bitcoins is moving. So look into the transactions that are happening on a daily basis and just use a percentage that would represent how much of these money are really used for purchases. Because right now there is no way to know since there is no regulatory board or entity that is monitoring all the stores that accepts bitcoins. It's practically hard to create this data.

Ok, I thought about this, the answer is out there and it's more simple than I first thought.

Why do people make transactions?

(A) To buy goods
(B) To pay for services
(C) To transfer bitcoin to a different wallet

What percentage of transactions in a day are conducted by A, B, or C?

A and B apply to the OP's question, so if you add your assumption for A and B you'll arrive at a % of all daily transactions that can be attributed to payment for goods and services. Then multiply that percentage by the daily transaction volume to get your answer on any given day.

Let's say A + B = 85%.

On March 7th the Bitcoin transaction volume totaled $102M. (https://blockchain.info/charts/trade-volume?timespan=all (https://blockchain.info/charts/trade-volume?timespan=all))

85% * $102M = $86.7M - this is my estimate of the amount of transactions used to buy goods or services conducted in a single day (March 7th).

What do you all think of this approach?

thanks for all the answer. so nobody knows and nobody can really know. so i think it is time to collect some data. but i won't find the time to day that. and i think this could be something that a "BTC-magazin" could do for us.