Cryptoverse Canada: Bitcoin moves towards Satoshi’s payment dream – (Reuters) It would make Satoshi Nakamoto happy. Teenage bitcoin could finally be paying off its creator’s belief.
The 15-year-old cryptocurrency has played a variety of functions, from the source of speculation to inflation hedge, but has had trouble defining itself. There are now more and more indications that it is moving closer to its primary goal: payments.
According to Richard Mico, U.S. CEO of Banxa, a supplier of payment-and-compliance infrastructure, “the growth in terms of building out crypto payments has proceeded apace, even if it’s gone somewhat overlooked because of the volatility in the larger market.”
According to crypto statistics, the quantity of bitcoin kept on the Lightning Network, a payment system built on top of the blockchain, has increased by two-thirds in the past year to reach an all-time high of 5,580 coins.
Crypto payment experts have observed high volumes.
According to U.S.-based BitPay, transaction volumes increased by 18% in 2018 over 2021. According to CoinsPaid, volumes increased 32% in the fourth quarter of 2022 over the same period last year.
BTC AND REAL IN BRAZIL
Yet why has crypto failed to realize Nakamoto’s vision, which was outlined in the renowned 2008 white paper “Bitcoin: A Peer-to-Peer Electronic Currency System”?
Cryptocurrencies have been difficult to use as a form of payment because of issues including price volatility, sluggish processing times, and ongoing regulatory ambiguity. Few businesses charge for goods or services in cryptocurrency.
Yet, supporters assert that bitcoin, particularly for cross-border payments, provides cheaper transaction costs and faster speeds than conventional currency.
Aside from bitcoin, other cryptocurrencies have gained popularity, particularly for remittances, cross-border payments, and in emerging markets where the value of local currencies has been negatively impacted by inflation. Stablecoins, which are pegged to the value of traditional currencies, is one such cryptocurrency.
The number of deals on the Stellar blockchain, which permits international payments, increased to 103.4 million last month from 50.6 million in January 2022.
According to CryptoCompare statistics, trading volumes between bitcoin and the Turkish lira, and the Brazilian real surged by 232% and 72%, respectively.
The widespread use of cryptocurrencies for payments is not without its challenges; for instance, it is debatable whether blockchains are prepared to manage the strain of processing thousands of transactions at once, especially without a corresponding increase in transaction costs.
According to some industry participants, efforts by some of the biggest economies in the world, such as China, India, and Japan, to develop their own digital currencies (CBDCs), might also stifle the expansion of crypto payments. Others, though, view the increased interest in CBDCs as proof that the technology behind blockchain payments is here to stay.
Conventional financial institutions that want to accept cryptocurrency payments have also ignored recent market volatility. One is Visa’s agreement this month with the cryptocurrency company WireX to directly issue debit and prepaid cards that support cryptocurrency.
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