Things are not looking great for Bitcoin as of right now. The price is dropping, and so are the number of transactions. This latter part is always subject to interpretation, though. While things may look a bit bleak now, there is no reason to believe the situation won’t improve. In fact, it seems things will most certainly get better over the next few months.
Bitcoin Transaction Volume Dip
Using Bitcoin as a currency means competing transactions. When the Bitcoin transaction numbers are on the decline, people get concerned. It seems to indicate there is less demand for BTC, as well as little interest in effectively using it. At the same time, the Bitcoin transaction volume is affected by a lot of different factors.
https://twitter.com/josephkunzler/status/979955599541788673
As has become apparent recently, transaction batching is quite popular now. This means people will see “fewer” transactions, but it’s a positive development overall. Batching leads to lower fees and faster confirmation, which is all anyone can ask for. Even, we are currently at the Bitcoin transaction level of October 2015. It is clearly not the sign people are looking for.
Looking at the bigger picture, the Bitcoin transaction volume was increasing quite rapidly. This trend has become apparent for several years now. Even so, there have been a few dips along the way. This is by far the steeper dip, but it is not just because there is less economic activity per se. Looking forward, things may very well pick up once again.
The Future Still Looks Bright
Various improvements will come to Bitcoin users. SegWit adoption is increasing, which will help Bitcoin scale a bit. Additionally, the Lightning Network is inching closer to being released every day. Those two developments alone will have a positive impact on the Bitcoin network from a technical level.
At the same time, merchants and retailers show a renewed interest in Bitcoin. This is despite the price volatility so many people are concerned about right now. Once people spend Bitcoin again, the overall transaction volume will rise. Users will also benefit from the lower fees and even micropayment solutions as well.
Especially retailers in South Korea are keen on Bitcoin. Combined with the ongoing efforts in Japan, the Bitcoin transaction volume will pick up sooner rather than later. It may take some time until things improve, though. Keeping the long-term picture in mind at all times has never been more important. Bitcoin is still in the early stages. Gradually, things will improve, and all of this becomes a footnote in the history of cryptocurrency.
Image Courtesy of Shutterstock
