Fewer payments are being processed per month using Bitcoin in comparison to 2016. Of recent, people are more interested in trading or storing the cryptocurrency rather than making payments with it. Also, some merchants have removed the Bitcoin payment feature from their platforms, reports Longhash on February 25.
Comparison Between 2016’s and 2019’s Bitcoin Payments
Bitcoin in 2019 has processed fewer payments when compared to 2016. This can be attributed to people’s interest in trading and storing the virtual asset rather than making payments. In the same vein, several merchants have taken down the payment feature due to the increase in transaction fees.
Longhash, on the other hand, noted that if one decides to settle for OXT’s data, they might be unable to tell if there has been a decline in these payments. The data reveals that 9.2 million transactions were recorded in January 2019. This is an increment from the 5.3 million monthly transactions carried out using the digital currency in February 2018.
The platform also pointed out that the overall data should not be a yardstick of determining the growth. This is because OXT combines transactions with estimated payments per month which has amounted to the 9.2 million transactions in January.
Comparison Between December 2017 and February 2018
The Bitcoin payments in December 2017 and that of February 2018 were also compared. As expected, the former had grown significantly to 19.1 million payments, which is a major spike from previous months and years where the payments only grew gradually. However, July 2015 also had the same hike in payments. The increase was attributed to some stress tests that may have been carried out.
Alternatively, February 2018 recorded a sharp drop in payments given that the Bitcoin bubble had busted by this time. Within two months, the payments moved from 19 million to 9.5 million. Therefore, it can be said that an increase in Bitcoin’s price also has a way of influencing the number of payments that are carried out with it.
Venture Capitalists in Silicon Valley Had Promoted the Use of Bitcoin
Longhash also outlined that in the early days of the virtual asset, venture capitalists in Silicon Valley had promoted its use for payments. It was seen as a way to make cheap and fast payments online. While this may have worked to their advantage, a lot of merchants have removed the option to accept virtual currency for payments.
BTCNN reported an instance of this of Hungry.dk, a food portal in Denmark that allows food to be purchased from over 1,400 restaurants. However, the platform had removed the Bitcoin payment feature in 2017. According to them, it was due to the slow nature of transactions during the bitcoin bubble. Nonetheless, the payment feature has been re-enabled.