Global Data Says Bitcoin Transaction Costs to Increase
Global Data, a London based research firm recently released a study named ‘Cryptocurrencies- Thematic Research’. It is aimed at breaking all myths held towards the cryptocurrency market, explaining the high costs associated with these transactions and their uses.
It is a 34-page document and is more of a pessimistic view of the cryptocurrency market as they believe that it is not going to achieve the heights initially hoped for. The Chief Analyst of Global Data, Gary Barnett believes the same and said
Many of the most basic claims made by proponents of cryptocurrencies simply are not true. We are told that cryptocurrencies speed transfers up, that they help to eliminate middlemen and that they are free of cost, but none of this is true.
Barnett and the overall report focused a lot on Bitcoin, often using it as an example of the high transaction costs and dipping value of the currency. According to Barnett, cryptocurrency transactions are ‘anything but free’. He notes that the transaction cost of bitcoin rose to $50 when it was at its peak and when it is not doing so well it can go as low as $1. However, if transaction volumes increase, the transaction cost will too.
Another issue brought up by the report is that no cryptocurrency is as widely accepted as normal currency. Barnett says
No cryptocurrency is widely accepted and transacted. The number of retailers and businesses that accept cryptocurrencies as payment for goods and services is vanishingly small, and those that do typically report very low volumes of cryptocurrency transactions by comparison to other means of payment.
It is to be noted that cryptocurrencies are something that most individuals and countries are still trying to fully understand. Both customers and merchants are exploring cryptocurrency and governments across the world are either evaluating the crypto market or set regulations in place.
Global Data has also raised concerns regarding the scalability of cryptocurrency, requiring platforms that provide higher transaction volumes and improved trading. However, there are some platforms, such as the Lightning Network that makes crypto transactions more scalable and answers a lot of these concerns.
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