Report: Bitcoin (BTC) Payments Down 80% Over the Past Year
According to a recent report by Reuters that cites data from Chainalysis, a provider of cryptocurrency tracking tools to companies and law enforcement, Bitcoin’s inability to scale and dramatic price volatility has likely played a role in the drop of its use in payments.
“There would have to be a stability requirement if it is to become another form of money,” said Joni Teves, a strategist at UBS in London. “But 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?”
While Bitcoin’s utility as a form of payment has retracted over the last year, the Lightning Network, a “second layer” payment protocol that operates on top of the Bitcoin blockchain, has surged to a network capacity of more than 332 BTC, roughly equalling $1.8 million.
According to data from 1ML, the network capacity of the Lightning Network has surged nearly 200% in a month, while the number of nodes increased a little over 8% in the same period.
The Lightning Network works to bring transactions and payment settling off-chain, to reduce the time and fees associated with Bitcoin transactions.
BTC is currently trading for $4,536, giving the largest cryptocurrency a $78.87 billion market cap and a 56% weight in the AltDex 100 Cryptocurrency Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.