Topic: [2018-07-27] Only 33% of Bitcoin Payments Used to Purchase Goods, Economic Value - page 2. (Read 326 times)
July 27, 2018, 06:15:33 PM
I do not know about the accuracy of this calculation but it is no suprise that most of transactions are not for goods as we know that the BTC acceptence by vendors is not very high at this moment.
July 27, 2018, 05:59:45 PM
As global investors flock to cryptocurrency as an investment vehicle, the use of cryptocurrencies for their intended purposes has come into question. New research suggests that only one-third of transactional activity occurring on the Bitcoin network is related to the purchase of goods or services.
The "intended purpose" of Bitcoin wasn't consumer purchases. It was intended to solve the double spending problem without introducing a trusted third party. Consumer sales are just about the most boring use case for Bitcoin, and conventional payment methods are perfectly fine for most consumer applications.
If anything, consumer purchases should drop as a percentage of total BTC usage over time. As BTC becomes increasingly accepted as its own asset class and a store of value unto itself, people will just hoard it more and more.
Satoshi wanted Bitcoin to be used for many purposes, including consumer purchases. Also, the current centralized payment systems are not perfect for consumers - they lack privacy, they require trust (banks can and do freeze accounts for whatever reasons they want), fees can get big with international transactions. Maybe it's not a problem for the majority of population, but there are definitely those who would use crypto over traditional payments for their daily purchases.
July 27, 2018, 05:27:56 PM
As global investors flock to cryptocurrency as an investment vehicle, the use of cryptocurrencies for their intended purposes has come into question. New research suggests that only one-third of transactional activity occurring on the Bitcoin network is related to the purchase of goods or services.
The "intended purpose" of Bitcoin wasn't consumer purchases. It was intended to solve the double spending problem without introducing a trusted third party. Consumer sales are just about the most boring use case for Bitcoin, and conventional payment methods are perfectly fine for most consumer applications.
If anything, consumer purchases should drop as a percentage of total BTC usage over time. As BTC becomes increasingly accepted as its own asset class and a store of value unto itself, people will just hoard it more and more.
July 27, 2018, 04:38:33 PM
Is there an encouragement towards consumerism amongst bitcoin users? Like we are not using it for the correct purpose, and that we should be buying things that we don't actually need?
Bitcoin has intrinsic value in that it is a decentralized system of exchange. But it is also a store of value. It contains value in terms of (US$) that is isolated from the most violent system of manipulation: central banks. There is no central authority that can print more of it or raise interest rates because they need to "stimulate the economy". It is what it is. Pure and simple. Maybe people aren't buying and selling with it right now, but that might just be because it's a little bit slow, and not many merchants accept it.
Bitcoin has intrinsic value in that it is a decentralized system of exchange. But it is also a store of value. It contains value in terms of (US$) that is isolated from the most violent system of manipulation: central banks. There is no central authority that can print more of it or raise interest rates because they need to "stimulate the economy". It is what it is. Pure and simple. Maybe people aren't buying and selling with it right now, but that might just be because it's a little bit slow, and not many merchants accept it.
July 27, 2018, 04:23:17 PM
It's an interesting point but I do think the numbers will go up. Part of the problem with Bitcoin today is too many people are holding it as opposed to spending it. Yeah it's great to hold on to an investment but in the end it's supposed to be currency and currency only works if you're spending it.
July 27, 2018, 03:58:57 PM
the use of cryptocurrencies for their intended purposes has come into question. New research suggests that only one-third of transactional activity occurring on the Bitcoin network is related to the purchase of goods or services.
Why does someone waste time posting this type of article? the visa and mastercard do not like crypto for several reasons and one of those reasons is because cryptos are not regulated in many country, so if we do not have bitcoins debit cards or virtual cards that allow to make purchases using bitcoins, as it would be possible to have many transactions related to the purchase of goods or services? I think nobody should waste time posting this kind of article
July 27, 2018, 09:21:39 AM
I stopped reading the article at this line:
Today the estimated transactions are 108,108 BTC, the reward is 1800 BTC, you would have to send all those coins back and forth 6 times to reach 10%.
And they call themselves "cryptoasset analysts"
Quote
According to data from blockchain data provider CoinMetrics, the majority of Bitcoin’s transactional activity can be attributed to factors like mining pool distributions, spoofing, and manipulation.
Today the estimated transactions are 108,108 BTC, the reward is 1800 BTC, you would have to send all those coins back and forth 6 times to reach 10%.
And they call themselves "cryptoasset analysts"
July 27, 2018, 08:12:06 AM
As global investors flock to cryptocurrency as an investment vehicle, the use of cryptocurrencies for their intended purposes has come into question. New research suggests that only one-third of transactional activity occurring on the Bitcoin network is related to the purchase of goods or services.
Full article on NewsBTC
Full article on NewsBTC
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