The crypto trading marketplace is filled with possibility, but unfortunately, there are also many pitfalls, such as fake coins and suspicious websites. This is why crypto investors should be alert and informed before seriously investing in anything. Namely, inexperienced crypto investors trading Bitcoin may come across both XBT and BTC crypto tokens.
This article will explain the difference between XBT and BTC ticker symbols, and help understand a little history behind XBT and its breakthrough in the market. It will also talk about XBT traits and its benefits as a cryptocurrency. Finally, it will cover some controversies surrounding XBT and check if it is a full-fledged currency.
What is XBT?
Short answer: XBT is just another ticker symbol for Bitcoin. Ticker symbols are defined as unique strings of letters that are used as identification for different trading platforms and exchange sites. For example, for Ethereum, this short order of letters is ETH, for Cardano it is ADA, for Bitcoin it is BTC, and so on.
Namely, all currencies are subject to a standard called ISO 4217. This proposes that all currencies must contain a three-letter code and a three-number numeric code. The code is mostly used in banking and business-related affairs, which is why exchange rate lists use those codes precisely.
In most cases, the first two letters represent the country of origin, and the third letter represents the currency itself. For example: JPY – Japanese Yen; JP stands for Japan and Y for Yen.
XBT vs. BTC
What does this mean specifically for our XBT ticker symbol? XBT and BTC are the two accepted Bitcoin codes. BTC is the popular one in the crypto world and among traders, and XBT may be better since it carries the potential to be a global reserve.
X in XBT means that it is not connected to a country and its government or a specific part of the world, so we say it is a supranational currency. In any case, XBT is the international Bitcoin ticker symbol, and BTC is here mostly for everyday use. An example of a good comparison is this one: XBT vs BTC.
The XBT ticker symbol first appeared on an economy and business website called CNN Money in 2015, and according to some sources, it appeared for a short time back in 2013 on Bloomberg’s terminal. The fact that a famous financial website started this XBT trend was a sure sign that it was catching wider attention and that the ticker symbol was going to mainstream circles. 2015 was also the same year that Bitcoin started transforming from an obscure service into the most famous crypto coin.
At first, information on Bitcoin was updated daily or even in real-time, such as price updates, news and different widgets. As stated before, the new identifier was used to comply with the international ticker symbol standard – the ISO standard, and it looked oddly similar to gold and silver (XAU and XBA) ticker symbols. This is where the term digital gold or Bitcoin gold was coined. Bitcoin was still counted as regular stock, but this surely helped it start positive rumors among traders.
Benefits of paying with Bitcoin (XBT and BTC)
XBT is the most powerful non-government-regulated currency in the world. You have complete control over your funds and if government policies change, this won’t affect you. Decentralization is the primary benefit of BTC and XBT.
Paying with Bitcoin is based on anonymity and the third party is not necessary. This is because the transactions system is peer-to-peer and takes place on the blockchain. Transactions are processed without any need for personal information, and with great flexibility since payments are universal and available on Bitcoin.
Bitcoin ATMs are found around the world. Having a secure crypto wallet is simple and a couple of clicks are usually enough for all transactions. Finally, private wallet keys are very long hexadecimal strings that are practically impossible to breach, and imitating real transactions is extremely difficult.
Why is this confusion with ticker symbols necessary? Isn’t this controversial or suspicious?
Don’t worry, nothing is shady here and the different ticker symbol has a perfectly fine explanation. Problems arise when more than one company wants to occupy a certain ticker symbol with their crypto. This causes a collision and is why the industry standard is needed to allocate unique identifiers.
If we follow that stipulation, we can see that Bitcoin can’t use the BTC ticker symbol because BT is taken by Bhutan; BTC would then be the Bhutanese currency. Because the ticker symbols belonging to based precious metal standards start with an X (XAG is silver), the new ticker symbol XBT was born. This solves the most common XBT vs. BTC confusion.
XBT investing risks
Since we have shown that there is nothing wrong with XBT and it is indeed a fully-fledged ticker symbol, we can summarize XBT and BTC risks into one idea. As you probably know, we have been in the Bitcoin bear market for quite some time now. While this may be seen as bad, it is not necessarily so. If we ask analysts, such as CryptoCompare, we can see a big difference now compared to previous bear markets, such as those during the entire year in 2014 and 2018.
The plunges then were hitting the high-80s in percentages, and this one, in 2022, never went above 70% loss. You may think this is not a huge difference, but wait for it. Another difference now is that even large investors, along with smaller ones, have been buying a lot when dips happened this year, which never happened in bear markets before.
Trading Bitcoin rainbow chart
Even though numerous experts and “experts” predict that the dip is going to continue, analyses showing it is the best time to buy because the bottom is already here also make sense.
There are things such as Rainbow charts. Take a look at the rainbow and you will notice a pattern. BTC only reached the bottom of the rainbow a few times. And every time, that was actually the moment to start buying. If we put this idea further forward, we can see that BTC is expected to grow to over six figures in the next five or so years.
Of course, there are a lot of ‘ifs’ and you should always consider all precautionary measures and invest only the amount you are ready to live without.
All in all, BTC and XBT are different ticker symbols behind the same concept. Together, they are still the leaders in the crypto industry and should be approached, but with care.
Clifton T Brown is a crypto journalist who has been in the industry since its early days. He has seen it all, and his writing reflects that experience. Clifton is known for his level-headed approach to reporting, and he remains unbiased in his coverage of the industry. When he’s not writing, Clifton can be found exploring new corners of the world with his wife and daughter.