Bitcoin for Everyday Purchases Is Not Yet A Reality, Said Chainalysis Economist

3 Jun, 2019 12:10
source: 香港奇点财经 Singularity Financial

Chainalysis, a blockchain research firm based in New York, has revealed a series of data that shows 89.7% of all the bitcoin activity came from exchange-related transactions, on the other hand, payments only accounted for 1.3% from January to April of 2019.

The firm’s data also suggests the highest point for merchant transactions emerged in late 2017 reaching 1.5% during a bull market. In 2018, the number has largely dropped to 0.9% due to a bear market and then gradually recovered from the impact.

“Bitcoin economic activity continues to be dominated by exchange trading,” Kim Grauer, senior economist at Chainalysis told Bloomberg. “This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”

Partly because of the bitcoin’s significant instability and recent price surge, Bitcoin will remain to be a speculative asset rather than payment for a while, Bloomberg said.
It is worthy to note that AT&T Inc. has recently allowed its customers to pay with cryptocurrencies, however, whether speculators want to use digital coins to pay wireless services remains to be seen.