Use of BTC as commercial payment medium has fallen, says study
Use of Bitcoin (BTC) as a medium for commercial payment saw a significant decline this year, states a study by Chainalysis.
The drop rate slumped by 80 percent from the beginning of the year till September. This observation was made on the basis of a survey of 17 Bitcoin payment processors by Chainanalysis. The analysis of individual payment processors depicted a downward trend.
The value of transactions at Canadian firm Coinpayments fell by more than half from the beginning of this year till October 2018, reported Reuters, citing data from blockchain analysis site OXT. "Bitcoin payments processing is seeing a slow but consistent decline," said Lex Sokolin, global director of fintech strategy at research firm Autonomous Next.
"Bitcoin payments processing is seeing a slow but consistent decline," said Lex Sokolin, global director of fintech strategy at research firm Autonomous Next.
The data of leading cryptocurrencies used for commercial payments is believed to be inconsistent as they trade with other currencies, which gets included in the final data.
The value of BTC payments saw a sharp decline from previous years to September 2018. The value fell from $427 million to $96 million. However, Chainalysis had predicted a growing stability for Bitcoins.
Many believe that the relative stability of BTCs would accelerate its usage as a payment method by individuals as well as commercial institutions. However, others are of the view that stability alone would not create any impact.
BTC needs to be faster, cheaper, and legitimate by establishing certain clear rules, said Joni Teves, a strategist at London-based financial firm UBS.
Many believe that the relative stability of BTCs would accelerate its usage as a payment method by individuals as well as commercial institutions.
The decline can further be established by recognizing the number of major companies which have stopped accepting cryptocurrency as a payment method.