Chainalysis Study Shows Bitcoin Merchant Payment Use Dipped 85%
Chainalysis, completed a survey recently that showed Bitcoin merchants have been using the platforms much less. In fact, to the tune of up to 85% less. Bloomberg commissioned the survey shows that peak usage was around 411 Million in September 2017 and shows a record low of only 60 Million in May 2018.
As mentioned above, this displays a decrease in Bitcoin use by 85%.
The survey used data from payments that were received through various exchange platforms like Bitpay, Coinify and GoCoin. Each of these platforms individually attained somewhere around 69 Million in June 2018.
Described as volatile due to the coin price is holding many people back from performing transactions. All of which to some degree is expected. However, a senior researcher at Bloomberg stated that ‘It’s not actually useable. Often the net cost of a Bitcoin transaction is far more than a credit card transaction’.
Chainalysis went on to say too that because of the fluctuation in price, depending on when the Bitcoin was used for a transaction you could lose up to $1000 in one day – so there is no real surprise the numbers dropped so dramatically in its usage.
The transaction fees have become much greater due to these shifts on the market.
At one time, a single transaction in December 2017 cost $50.00. This of course depended on where the Bitcoin was being used. For example, a cup of coffee would not carry a $50.00 transaction fee where greater purchases or exchanges would. There were/are also a number of websites who are accepting Bitcoin for payment and in these cases the uses have remained relatively consistent.
However, despite these reported drops discovered by this recent survey, the last 6 months have seen a growth in crypto companies now paying their vendors in Bitcoin. This includes law firms, accounting firms, landlords and even software vendors.
Lastly, this report stated that BitPay has seen an increase in companies that are now paying their bills with cryptocurrencies. Including, Chief Growth Officer at Mosaic who sells his Bitcoin to pay his credit card bills. He believes it is not always about everyday transactions but using it for these sorts of reasons are much more likely and common.