Sunday, May 26, 2024

Bitcoin users approaching 5M by 2019, says study

The number of active Bitcoin users worldwide will reach 4.7 million by the end of 2019, up from just over 1.3 million last year, a new report from Juniper Research said.

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However, the report, ?The Future of Cryptocurrency: Bitcoin & Altcoin Impact & Opportunities 2015-2019? argues that usage will be continue to be dominated by exchange trading, with retail adoption largely restricted to relatively niche demographics.

According to the report, while a number of high profile retailers are enabling Bitcoin payment, activity levels from both online and offline deployments are extremely low.

?While average daily transaction volumes have increased by around 50% since March 2014, the indications are that much of this growth results from higher transaction levels by established users rather from any substantial uplift in consumer adoption,? Windsor Holden, author of the report, said.

The report cited a number of factors which it claimed would continue to inhibit growth, most notably the difficulty in communicating the concept of cryptocurrency payments to end users.
It also argued that Bitcoin?s historical association with, and continued use by criminals for illegal purchases and money laundering was likely to act as a further deterrent to mass adoption.

The report observed that with many Bitcoins being hoarded by early speculators, currency supply could be further restricted with Bitcoin mining profitability threatened by a combination of the cryptocurrency?s volatility, lower Bitcoin yields and rising electricity costs.

The report further said the introduction of licensed, regulated exchanges could lead to a stabilization in currency values and with it an increase in retail transaction adoption
The ?altcoin? market continues to be plagued by ?pump and dump? currencies created solely as short-term investment vehicles, the report further said.


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