Only 1.3% Of BTC Transactions Are Actually Payments: 2019 Report

Only 1.3% of BTC transactions in 2019 so far come from merchants and payments which means that no one is using bitcoin to buy things. Like the reports, we have in our latest cryptocurrency news suggest, 98.7% of the volume is all on the exchanges.

The research firm Chainalysis made this discovery a few days ago showing that the bitcoin economy is still mostly speculation. The figures are based on the company’s research team for the previous four months of 2019. The senior economist at Chainalysis Kim Grauer told Bloomberg:

“Bitcoin economic activity continues to be dominated by exchange trading. This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”

According to Olga Kharif who is a tech column writer at Bloomberg, the bitcoin price rally hides the ‘’uncomfortable reality’’ by saying:

 “That’s become the main dilemma with cryptocurrency. Bitcoin needs the hype to attract mass appeal to be considered a viable electronic alternative to money but it has developed a culture of ‘hodlers’ who advocate accumulation rather than spending.”

Currently, there are plenty of HODLERS who advocate accumulation and this could be a reason for the low percentage in bitcoin payments. Some analysts even described it as the ‘’invisible hand’’ of Adam Smith who guides the decisions in the economy based on knowledge and self-interest.

The banks in the US monetary system are built to only accept dollars and lose about 3 percent of their value every year since the Federal Reserve expands the money supply steadily. The FED issues the dollars to Federal Reserve Banks and lends it at a profit. When the money starts circulating, they bring the value of the dollar down in your bank account.

On the contrary, no central authority issues Bitcoin and the asset has a fixed supply that will max out once after 21 million BTC are issued. People will likely spend them differently than dollars but for now, it still remains that only 1.3% of BTC transactions are payments. It is expected that in the near future, bitcoin will become a global merchant solution.

As noted in the coming altcoin news, people are still skeptic of the major asset mainly during a bull run. Everyone expects for it to crash meaning that people still don’t have faith in it.
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