While most cryptocurrency exchanges use BTC as the ticker symbol for Bitcoin, you might have also come across the symbol XBT on platforms like Kraken and BitMEX. This article explains the reasons behind Bitcoin's dual ticker symbols and what they represent.
The vast majority of crypto users are familiar with Bitcoin being represented by the ticker BTC. However, this isn't an "official" abbreviation in any formal sense—such a concept doesn't really fit within a decentralized network. In reality, the alternative ticker XBT is also used across various trading and financial platforms.
But why does XBT exist when BTC is so widely recognized?
XBT Follows International Standards
The International Organization for Standardization (ISO) sets the global standard for currency codes under ISO 4217. According to this standard, the first two letters of a currency code represent the country, and the third letter denotes the currency name. For example, the British Pound is abbreviated as GBP (Great Britain + Pound), and the Japanese Yen is represented as JPY.
Currency and asset codes that are not tied to a specific country begin with the letter "X." Precious metals like gold, silver, and platinum are assigned the tickers XAU, XAG, and XPT, respectively. The "X" is followed by the chemical symbol of the metal from the periodic table. Each unit refers to one troy ounce (approximately 31 grams) of the element.
By using XBT for Bitcoin, proponents place it in the same category as precious metals and reinforce the idea that Bitcoin is "digital gold." Other cryptocurrencies also follow this ISO convention, such as Ripple (XRP), Stellar (XLM), and Monero (XMR).
Another practical reason for using XBT is to avoid overlap with the currency of Bhutan. The Himalayan kingdom uses BTN for its currency, the Ngultrum. This means the letters "B" and "T" are technically already reserved under the ISO system.
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Which Exchanges Use XBT?
Despite the logical reasons for adopting XBT, the symbol has not gained widespread popularity compared to BTC. However, some major platforms do use XBT. For instance, BitMEX, one of the world's largest crypto derivatives exchanges, uses XBT. Kraken, another well-known exchange, uses both: XBT on its price information pages and BTC on its trading interface.
Back in 2013, Jon Matonis, a writer for CoinDesk, advocated for the ISO to officially recognize XBT as Bitcoin's ticker symbol. So far, the organization has not taken action. As a result, the choice between BTC and XBT remains largely up to individual platforms and users.
Frequently Asked Questions
What is the difference between BTC and XBT?
BTC and XBT both refer to Bitcoin. The difference lies in their usage. BTC is the more commonly used symbol and was originally adopted by the Bitcoin community. XBT is used by some exchanges and traditional financial platforms to comply with the ISO 4217 standard for currency codes.
Why are there two ticker symbols for Bitcoin?
The two symbols exist due to differing preferences and requirements among exchanges and financial institutions. Some platforms prefer BTC because of its historical and community-driven origins. Others opt for XBT to align with international financial standards and avoid conflicts with existing currency codes.
Which exchanges use XBT instead of BTC?
Exchanges such as Kraken and BitMEX use XBT for Bitcoin. Some traditional financial data providers like Bloomberg also use XBT in their systems.
Does using BTC or XBT affect trading?
No, the choice of ticker symbol does not impact the actual trading of Bitcoin. Both symbols represent the same asset, and market dynamics, liquidity, and trading rules remain unchanged regardless of which symbol is used.
Are there other symbols for Bitcoin besides BTC and XBT?
BTC and XBT are the most widely recognized symbols for Bitcoin. Some platforms or local communities may use internal or informal symbols, but these are not commonly accepted or used in global markets.
Is XBT officially recognized by standards organizations?
As of now, the ISO has not officially recognized XBT (or BTC) as the standard ticker for Bitcoin. The situation may evolve as cryptocurrencies gain further institutional adoption.
Should I use BTC or XBT?
For most everyday users and investors, the difference is minimal. It's more important to be aware that both symbols refer to Bitcoin, especially when using platforms that adopt different conventions. Always double-check the context to avoid confusion.