Cryptographic merchant processing services receive less bitcoins than before. The volatility, the transaction fees and the impossibility of reversing the transactions were cited as reasons for which
The main encrypted merchant processing services are receiving less bitcoins. In September 2017, the companies included BitPay, Coinify and GoCoin received $ 411 million. After a minimum of $ 60 million in May 2018, the figure now amounts to $ 69 million.
Numbers suggest that people choose not to spend bitcoins for goods or services. This decline coincided with the spike in speculative investments. Consumers seem reluctant to negotiate with BTC despite the price of Bitcoin 0 0 stabilizing slightly over time since then.
Bitcoin is in trouble?
The way Bitcoin is used is changing. Researchers are throwing speculations on the utility of Bitcoin because of three factors. Volatility, transaction fees and inability to reverse transactions.
"It is not actually usable," said Nicholas Weaver of the International Computer Science Institute, according to Bloomberg . Often "the net cost of a Bitcoin transaction is much more than a credit card transaction," said the researcher. Furthermore, the impossibility of reversing transactions is a problem. Especially when users collide with fraud.
Kim Grauer, senior economist at Chainanalysis, accuses the volatility despite a general downtrend. With Bitcoin rising so fast last year, "in one day you could lose $ 1,000 if you spent it," he said Bloomberg . Although, given the choice between today's price 0 0 and low commissions and the historical high of nearly $ 20,000 per bitcoin, many would probably agree to pay a little more for send their money  Several companies have withdrawn from Bitcoin since the use has decreased and price fluctuations have intensified. In January, the Stripe Inc. payment service stopped supporting Bitcoin. In addition, several travel service providers, including Expedia, have stopped accepting the cryptocurrency.
The volatility and cost of transactions with Bitcoin are also a big problem. In December 2017, it peaked at $ 54. Although Bitcoin transaction costs are now less than $ 1, it is not practical for businesses. This is especially true for companies that deal with small items such as coffee.
Scope for Hope
On the other hand, a group of other cryptocurrencies still maintains a less positive outlook than Bitcoin in terms of transaction fees. For example, Bitcoinist reported in June that Ethereum's taxes exceeded those of Bitcoin for the first time ever.
At the beginning of May Bitcoinist reported that commissions on Bitcoin transactions have reached the minimum in 7 years. Not to mention, there are still valid use cases.
For example, even with transaction fees of $ 54, Bitcoin is an economical way to pay salaries. Consider paying freelances abroad. Even after a $ 54 fee, Bitcoin is even cheaper (and faster) than traditional methods. Paypal, for example, charges 5% for payments to foreign countries. So if a freelancer earns more than $ 1,080 in a month, Bitcoin would be cheaper.
Sonny Singh, chief sales officer of BitPay, remains optimistic. In an e-mail to Bloomberg, he points out that "a big increase in cryptic companies pays their suppliers in Bitcoin". This includes "law firms, hosting companies, accounting firms, landowners and software providers".
Another feasible use case is for larger ticket items. Overstock.com Inc. recorded a double increase in encryption sales in the first half of 2018. According to the website, furniture and laptops are the best items purchased with crypto.
How will Bitcoin's stop beats affect business and consumer confidence in its use? Let us know in the comments below!
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