Bicoin would like to have the option that TROPTIONS affords with peer to peer.

Bitcoin’s Rally Masks Uncomfortable Fact: Almost Nobody Uses It

 Updated on 
  • Merchant transactions account for 1.3% of economic activity
  • Speculation remains the primary use, Chainalysis data show

Bitcoin has a lingering problem that few people are talking about amid the renewed exuberance of the recent price surge.

Hardly anyone is using the world’s largest cryptocurrency for anything beyond speculation. Data from New York-based blockchain researcher Chainalysis Inc. show that only 1.3% of economic transactions came from merchants in the first four months of 2019, little changed over the boom and bust cycles of the prior two years.

Even though marque companies such as AT&T Inc. now let customers pay with cryptocurrencies, the problem is that few speculators want to use the digital coins to pay for wireless services when the digital asset’s price might surge another 50% in a matter of weeks. That’s become the main dilemma with the cryptocurrency: Bitcoin needs the hype to attract mass appeal to be considered a viable electronic alternative to money but it has developed a culture of “hodlers” who advocate accumulation rather than spending.

“Bitcoin economic activity continues to be dominated by exchange trading,” Kim Grauer, senior economist at Chainalysis, said in an email. “This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”

Chainalysis tracks service providers including BitPay Inc. which provide payment processing services to merchants. BitPay, which recently was picked as a payment services provider for AT&T, processed $1 billion in both 2017 and 2018, BitPay said in an email.

Here’s how it works. A customer pays in Bitcoin and BitPay verifies the funds and accepts the Bitcoin on behalf of the business. The business has the option to take Bitcoin or fiat currency or a split. If the business chooses to take 100% fiat currency, the dollars are deposited into the business’ bank account the next business day minus a 1% fee BitPay charges for the entire process. The business is protected from any Bitcoin price volatility.

“We are still tracking a little up from last year,” said Sonny Singh, chief commercial officer at BitPay. “The consumers in America generally spend more when the price of Bitcoin goes up. They’ve gone the double, they want to sell some.”

While BitPay’s transaction volume may seem massive, Visa processedalmost half a billion transactions every day last year, and handled $11.2 trillion in payment and cash volume in 2018.

Overall merchant activity is still down from its peak in late 2017, when merchant services accounted for 1.5% of total Bitcoin activity during the peak of the crypto bubble. Use in merchant locations dropped to 0.9% last year, when the price of Bitcoin plunged before starting to recover in 2019, according to Chainalysis.

Transactions related to exchanges still accounted for 89.7% of all Bitcoin activity between January and April of this year, down only slightly from 91.9% for all of last year, Chainalysis found.   The trend could be a troublesome sign for Bitcoin’s longevity. Its anonymous creator, Satoshi Nakamoto, envisioned Bitcoin’s use in everyday transactions, from buying coffee to paying for rental cars. More recently, investors have been emphasizing that Bitcoin has instead morphed into a digital version of gold — an asset that holds value at times of economic uncertainty, as Bitcoin is uncorrelated to stocks or bonds. That may be wishful thinking, though.
“I’m not expecting Bitcoin to be used in any commerce anytime soon,” Kyle Samani, co-founder of Austin, Texas-based crypto hedge fund Multicoin Capital Management, said in an email, adding “that the store of value (AKA digital gold) hypothesis is unlikely to be the ultimate winner on decade+ timescale.” He is still bullish on Bitcoin, Samani said.

Dark net, or illegal, activity has increased, as have peer-to-peer Bitcoin transactions, Chainalysis found.

“Bitcoin is the leader today, and may continue to be the leader due to having the largest network effect and ‘brand,’ but I don’t think Bitcoin itself will ever be ‘money,”’ Jeff Dorman, chief investment officer at Los Angeles-based Arca, said in an email. “Bitcoin doesn’t have to be money to be a success. A lot of great technologies end up being strategically important without living up to their initial road map.”

Be There – Branson, MO Jan 12 – 14th, 2018 and learn from the Brain Trust!

Be There – Branson, MO Jan 12 – 14th, 2018 and learn from the Brain Trust!

Your TROPTIONS continue to grow with usable products to purchase.

but wait, there’s more….

Be sure to check out the recordings from last Thursday: TROPTIONS Turns Into Gold! and

Saturday: Visits Chateau Avalon!

The CEO and President have a few things to say if you are listening!

We are for the Beginner, Intermediate, and the Master Traders. There is room for all at the TROPTONS table for all…


More of Your TROPTIONS education will begin in BRANSON, MO – Jan 12, 2018.

More of  Your TROPTIONS education will begin in BRANSON, MO – Jan 12-14, 2018.

“I’m not Trading, I’m buying with my TROPTIONS!”

Understanding the HOW TO will make you millions!

Now you can play with the many cryptos' used for speculating, or you might want to get
a literal Good, Product, or Service? I don't know about you, but I just witnessed at a bank 
in Branson; someone purchase a portion of a Gold Mine using their TROPTIONS! 
Now that is what I'm talking about....
Sure a gold mine can be speculative, but it’s your tangible item!
Get with the KING of Coins and use your currency to acquire the thing you want. Sure it will take training,
and that is what we do on the 9PM EST Conference Call. Education isn’t free and neither is freedom.
Freedom to be your own individual.
Have yourself a Sonship Lifestyle with TROPTIONS – The KING of Coins!

Mr. Harris Quoted on the Conference Call this Saturday – Why not Buy the Bus Line!

Mr. Harris Quoted on the Conference Call this Saturday – Why not Buy the Bus Line!

In your exchanging of TROPTIONS, You may want to just buy the bus line.  Thinking bigger than the one item to the entire Dealership, as Mr. Stone noted.  Let’s really think OUTSIDE THE BOX!!!

12/30/2017 01:43 PM EST
TROPTIONS Revitalizes A City!

As entrepreneurs’ we continue to challenge our thinking process and improve.  What is the difference for those who believe is to excel in their area of interest for the product they desire.   Some people think on a larger scale and so, they receive at a larger magnitude?

We at give the opportunity to each one of you, from the large or the small;  but YOU must take the action.  There are no excuses for not achieving your greatness as Mr. Brown knows!

Martin, Lets Just Buy The Bus Line!