Chainalysis Study: Bitcoin [BTC]’s Merchant Use Dropped by 85%
In a recent survey conducted by Chainalysis Inc., it came out that the use of Bitcoin (BTC) by merchants and for commercial use case scenarios has reduced quite a lot. Commissioned by Bloomberg, the survey showed that in the September of last year the merchant usage peaked at $411 million and then went as low as $60 million in May. These figures demonstrate that usage of Bitcoin as a currency has reduced by 85%.
The calculation was done by the payments received through services such as BitPay, Coinify, and GoCoin, which supposedly went up to around $69 million in June. The reason for the decrease was attributed to Bitcoin “losing its appeal” as a currency and as a tool to buy goods and services. Nicholas Weaver, a senior researcher at the International Computer Science Institute stated in an email to Bloomberg:
“It’s not actually usable. Often the net cost of a Bitcoin transaction is far more than a credit card transaction.”
As per the report, these days the coin is being used as a topic for speculation. Furthermore, the volatile nature of bitcoin in specific and market, in general, is stopping people from using it as a mode of payment. The senior economist at Chainalysis, Kim Grauer stated:
When the price is going up so rapidly last year, in one day you could lose $1,000 if you spent it.”
Kyle Samani, the Managing Partner at Multicoin Capital, said in an email to Bloomberg:
“Most people who are not Bitcoin core maximalists argue that yes, you need people to use these things as means of payment to become money. Or as my co-founder Tushar likes to say, don’t think of money as a noun, but rather as an adjective. The more something is used as money, the more ‘moneyness’ it has.”
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