Nobody is using Bitcoin! That’s the sensationalist headline that will be running across media outlets, anyway. And it’s mostly true – transaction volume is down dramatically, especially when compared with the crazy flurry of activity that saw the price skyrocket during the latter part of 2017. But that doesn’t mean that you should write it off, or file in under “dead” in your mind. Rather, now is the time to get active!
A Tale of Direct Proportion
The fact is that lower usage means lower fees. In fact, transaction costs are at their lowest now for 18 months. It’s a simple case of supply and demand. If you pick your preferred exchange carefully, avoiding those who have set high minimum transaction values, then now is the time to move around relatively small amounts without being stung for a massive chunk of your BTC.
Of course, it’s not just a case of usage. The new SegWit fix is designed to increase efficiency, which will undoubtedly have a continued impact. But, across the board, transaction volumes are down around 60%, meaning that there isn’t the same kind of backlog. This is added to the fact that Bitcoin has been rejected by major banks and credit card providers of late, meaning that it simply hasn’t been an option for many would-be transactors.
Will it See-Saw?
Probably. At least in this way, Bitcoin will act just like a regular currency. Shrewd investors will see this as the time to buy, sell and transact. This is likely to start a trend that sees transaction volumes increase, which will then in turn start to increase fees again as backlogs grow. If the credit card companies that have turned their backs on Bitcoin deem the costs to be low enough, we may even see some re-adoption. The real question is whether, post-Segwit, the Bitcoin network is in a better place to cope with upwards of 500,000 transactions per day or not.
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