Bitcoin (BTC) has been around for almost a decade and despite widespread adoption, very few traders are receiving the digital currency. The first purchase known to use Bitcoin back in 2010 when the developer offered to pay two pizzas using BTC. May 22 is that day. A total of 10,000 BTC were sent to pizza men. At that time, BTC traded less than $ 0.10 USD, a total of $ 700 for both pizzas. The current BTC value is about $ 80 million USD.
Such a story has seen overall adoption of BTC as a form of payment to traders exponentially increasing. However, some of these stores and retail stores mention the lack of customers, expensive transaction costs and volatility being the most persistent problem that Bitcoin faces as a payment system under a single Medium post.
This among other reasons has restrained the overall adoption of Bitcoin in paying for goods and services.
Bitcoin issues affect merchants
Merchants have a case for firing BTC tales that are told because the system is slow and expensive. Bitcoin was first proposed as a mechanism for making transactions faster and through peer-to-peer connections. This network has an average transaction speed of 5-7 TPS that is relatively slow for blockchain. With transaction fees rising to 0.6% per transaction during high-volume trading, the platform can sometimes be more expensive than the current payment system.
Merchants may find the nature of BTC transactions that are expensive and slow to be an obstacle in their business. It was reported in January that some transactions took up to 3 days to be confirmed in a crowded network.
The advantage of using BTC as a payment system
- Bitcoin has the largest customer base
Bitcoin (BTC) is currently the largest coin in adoption, market capitalization and media attention. This makes it best for merchants to use as a payment system. The current coin has a total market dominance of about 40% which shows the overall impact and overall adoption of coins. The smaller Altcoin struggles to beat BTC in this case because merchants can not find customers using other altcoins. For traders using current cryptocurrency, BTC payments are received over 80% of these stores.
- Bitcoin affects altcoin
Merchants are increasingly looking to change payment systems by introducing cryptocurrency payments. Choices range from more than 1600 crypto currencies today with each reporting the problem they want to solve. Because Bitcoin already has a speed and speed problem on its site, having it as a primary payment system will not be sustainable with more people using the system.
However, Bitcoin can still be used as a store of value for traders. Customers pay using altcoin like Dash, convert it to BTC, and save it because BTC controls the market price effectively. Another Altcoin offers a higher risk than BTC at a price that is highly correlated with BTC.
Conclusion
BTC offers the best option for merchants to use today as a basis for other cryptocurrency benefits. The problem facing BTC is the solution to the current payment system problem. Considering that bank payments may take up to 5 days for transactions to be verified, BTC average time is about 30 minutes per faster transaction. However, it is best to use BTC as a value store as happens in other blockchain faster and cheaper.
Bitcoin (BTC) is currently trading at $ 7,743.59 USD, representing a 1.5% increase in the last 24 hours. Market capitalization at $ 132,197,019,762 USD further cemented its top position in Coinmarketcap. BTC is expected to reach a value of $ 10,000 USD by the end of 2018.