Research has found that the value of Bitcoin payments handled by processors has dropped by nearly 80 percent. The findings come at a time when the market saw relative stability during the summer months.
From $427 Million to $96 Million
After the bull run at the end of 2017, 2018 has shown a different picture. So much so, that for several months, Bitcoin was trading between $6,200 and $6,800.
Undergoing a period of relative stability, many may have thought this would boost its adoption as a means of payment. However, that doesn’t appear to be the case. In fact, according to blockchain researcher Chainalysis, the amount of Bitcoin handled by payments processors has dropped by nearly 80 percent in a year to September, reports Reuters.
Figures show that in December, the number of Bitcoin payments processed reached a high of $427 million. However, in September, that figure was down to $96 million.
Yet, while Bitcoin has reached a level of stability, there is another factor impacting its ability to become another form of money: scalability.
Joni Teves, a strategist at UBS in London, said:
…one thing that would take Bitcoin into the mainstream is scalability — is it able to process the value or volume of transactions that money tends to do?
At the moment, it’s nowhere near competing with the likes of VisaNet, which processes around 150 million transactions each day and is capable of handling around 24,000 transactions per second. On the other hand, though, Bitcoin remains a nascent currency, with development to aid its scaling capabilities being improved on each day.
Of course, even though the market is down and payments have seen a decline, that’s not stopping some from accepting Bitcoin.
Yesterday, it was reported that tobacconists in France are to start selling Bitcoin to customers next year. France-based platform Keplerk is behind the mission to bring crypto to the French nation. Upon entering a local tobacco store, customers can buy vouchers which they can then redeem on the Keplerk platform.
Adil Zakhar, Keplerk’s director for strategy and development, said of the announcement:
Tobacco shop owners are the best channel as they are trusted by customers and they are used to sell vouchers such as credit for mobile phones.
It remains to be seen what impact, if any, this will have. Yet, despite the industry turning to red over the last week, it shows that some still have confidence in it.
Do you live in France? Will you be purchasing the crypto vouchers? Let us know in the comments below.
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