Bitcoin Commerce Usage Drops By 85 Percent
As many often claim that Bitcoin will replace all other currencies and methods of payment within the foreseeable future, new research has revealed that quite the opposite is occurring. The findings reported have claimed that Bitcoin is seeing a massive 85 percent drop in commerce use on a near equivalent drop to cryptocurrencies and their prices in 2018.
Chainalysis, a cryptocurrency investigative service company has collaborated with Bloomberg to undergo the new research, revealing that 17 of the leading cryptocurrency processing services had experienced a whopping drop from $411M last year to $60M in 2018. Nicholas Weaver, a lead researcher at ICSI stated that one of the biggest issues in crypto was the price of transactions. Seeing as how Bitcoin is, in fact, more expensive to use than a regular credit card, it provides no inviting reason for individuals to use. He adds that Bitcoin’s permanent form and nature provides even further roadblocks when attempting to investigate any claims of fraud.
Despite this, the true factor of negative opinions towards Bitcoin is the incredible volatility attached to the cryptocurrency. Last year, BTC was at around $4K when logging in prices and skyrocketed to an all-time high of almost $20K on the market, the highest ever in BTC history. However, Bitcoin has heavily dropped in price since its $20K achievement although no actual excitement towards utilizing BTC as a payment method is apparent among buyers and sellers.
The cost of Bitcoin transaction fees is also a huge issue within the associated community. During December of 2017, transaction fees cost $50 per single use, a massive increase in cost during Bitcoin’s record spike, however, transactions are back to $1 as of now. In addition to the spike in transactions and their fees, this proved a difficult situation for customers attempting to buy everyday items like bottles of water or something to eat but would end up having to pay an addition$50 to any bill paid through crypto and transactions began taking too long to process.
A result of BTC transactions dropping significantly and only continues as a result of large firms and businesses that have dropped any Bitcoin transaction backing like Stripe, a payment company claiming that it's forsaking of BTC was due to longer and slower transaction processing. As the company’s Chief Operating Officer has stated, Bitcoin cannot fully be classified or operate as a legitimate currency until transaction speed has been severely enhanced. Expedia, another travel agency has also dropped any support for Bitcoin due to customer complaints.