Bitcoin's Popularity in E-Commerce to Decrease

According to the expert, the irreversibility of bitcoin-transactions is a problem, especially when a trading company or consumer faces fraud
02 August 2018   1487

The use of bitcoin in e-commerce is declining. This is evidenced by the results of a study conducted by the blockchain start-up Chainalysis Inc., Bloomberg reports.

The report says that after the peak of activity in September ($ 411 million), the turnover of the largest processing-oriented processing services went down. By May 2018 this figure was already $ 60 million.

Amount of BTC Received
Amount of BTC Received

In June of this year, this indicator slightly increased - up to $ 69 million, but this figure is several times less than for the same period last year ($ 270 million).

According to Nicholas Weaver, senior researcher at the International Institute of Computer Science, the irreversibility of bitcoin-transactions is a problem, especially when a trading company or consumer faces fraud.

Senior Economist Chainalysis Kim Grauer is confident that the active use of cryptocurrency for everyday calculations is hampered by still fairly high transaction fees. According to him, they make inexpedient the purchase of inexpensive goods.

The decline in activity in the use of bitcoin for purchases coincided with the peak of speculative demand for bitcoin, when in December last year its price almost reached $ 20,000. After a deep drop to below $ 6,000, in July this year the price of BTC began to show a fairly sharp recovery. However, this did not serve as a catalyst for demand for bitcoins for everyday purchases.

Grauer is sure that the wide distribution of bitcoin as a means of exchange is hampered by its still high volatility, even if the price of BTC goes up.

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   308

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.

 

People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.