Trade fueled by cryptocurrencies began to grow again. The data collected by Blockchain's criminal intelligence firm, Chainalysis, indicates a significant increase in volume during the first half of the year. This positive change coincided with the remarkable market recovery that followed last year's extended crypto-winter.
Read also: Turkey is the last nation to have worked on digital Fiat
$ 5.5 million crypto used in Commerce Daily
After a series of depressing months in 2018, trade based on cryptocurrency has begun to increase again in 2019, says the study cited by Bloomberg. According to Chainalysis, headquartered in New York, the number of cryptocurrencies sent to 16 merchant service providers, such as Bitpay, increased by 65% between January and July. During the same period, the price of bitcoin core (BTC) tripled to more than $ 12,000.
This year's positive trend contrasts with last year's findings, when Chainalysis recorded a decline in bitcoin trading. The company's 2019 study covers not only BTC-based trading, but also bitcoin payments (BCH), litecoin (LTC) and stablecoin tether (USDT). The report notes, these crypto-currencies are used to fund everything from online gambling to shopping in jar shops.
According to Kim Grauer, chief economist at Chainalysis, the increase in trade in bitcoins suggests that there is now more confidence in crypto. The publication acknowledges that the overall amount of cryptocurrency used in commerce remains low, but it rose from about $ 3 million a day in January to an average of $ 5.5 million a day in July. .
The volume is expected to increase as platforms such as Bitpay, which allow merchants to accept payments in BCH and BTC, introduce support for more digital parts in the future. The company, which processes more than $ 1 billion worth of transactions each year, expects continued growth as new currencies are added, including Ether (ETH) and Ripple ( XRP), spokesman Jan Jahosky told Bloomberg.
Slow transactions are a major obstacle to adoption
The different cryptocurrencies differ in many respects and the authors point out that the disadvantages associated with certain specificities have been a major obstacle to the growth of crypto-payments. For example, confirmation of a transaction on the BTC network may take up to an hour, preventing people from walking around a store, buying a cup of coffee and leaving, notes the company. # 39; section.
The volatility characteristic of most digital assets is also a negative factor and many businesses and consumers are still reluctant to use crypto for this reason. At the same time, researchers found a fivefold increase in the use of the loin during the period under review. According to Chainalysis, stable coins indexed to the US dollar accounted for 9% of all trade over the seven months covered by the study.
In reality, a growing number of merchants accept direct payments by cryptocurrency. For example, the Bitcoin Cash Map app now lists 1,769 physical store locations that allow you to pay with BCH. And according to a recent report by the Semrush marketing analysis company, cited by the daily La Stampa, cryptocurrency is the third most popular online payment method in Italy. Bitcoin is behind only Paypal and Postepay, while it is more prevalent in Italian e-commerce than direct payments with one of the major credit cards.
What do you consider the main obstacle to faster growth of encrypted payments? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock.
Are you a developer looking to use Bitcoin Cash? Visit our Bitcoin developer page where you can get Bitcoin Cash development guides and start using Bitbox, SLP and Badger Wallet SDKs.