Bitcoin should function as electronic money that can be used to make payments from one person to another without using a bank as an intermediary. However, bitcoin has recently had problems with scalability and high volatility.
Now, a new study by chainlink bitco analysis company shows that the amount of bitcoin payments has decreased by almost 80% since the start of 2018. The new study is based on data from 17 companies that they take payments with bitcoins, writes Cointelegraph.
"See a slow but steady decline"
One of the companies that participated in the study is Coinpayments from Canada, whose transaction value fell by more than half in 2018. The total value of bitcoin transactions rose from $ 427 million in December 2017 to $ 96 million in September.
"Processing payments with Bitcoin is seeing a slow but steady decline", Lex Sokolin, director at the analyst company Autonomous Next, according to the Reuters news site.
The future of bitcoin as a means of payment
Both large financial corporations and crypto-entrepreneurs agree that low volatility is not enough for bitcoins to be used more as a means of payment. Bitcoin transactions are believed to be much faster, cheaper and more scalable.
A bitcoin solution, which Reuters mentions, is "Lightning Network", a system based on bitcoin blockchain, but where transactions are not reported directly on the main chain. Transactions on the "Lightning Network" should be faster and cheaper.
"& # 39; Lightning network & # 39; solves some bitcoin scalability issues," he says Ed Cooper who works with cryptocurrencies at the company fintech Revolut, according to Reuters.
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