Bitcoin is the most talked about currency in the world. The digital currency was developed by a Japanese software developer in the late 2000s and was first used in dark net financial transactions. Since then, it has grown in popularity, even being used by traditional businesses, bringing a huge return on investment for those that bought into the currency early.
There is a problem with the currency, though. Despite forward-thinking business owners being more than willing to accept the currency, consumers are shying from using it. In fact, there are some companies with digital wallets that haven’t had a single customer use the currency.
If you follow the currency, you probably know that the stock price of Bitcoin has been surging lately, reaching prices above $3,000. Internet retailers decided to start taking Bitcoin as a form of payment during is surge into the public eye, even large companies like Dell and WordPress. This is starting to change though.
While the currency’s value is still increasing, financial experts don’t think that consumers are going to start using it more anytime soon There are two reasons for this.
1. Convenience – Bitcoin doesn’t prevent a more convenient way to exchange money. Consumers find it much easier to just use their traditional debit card because it takes fewer steps.
2. Businesses are ending its use – Since there are less online and terrestrial retailers taking the currency, people are less inspired to take the steps to use it. The company that processes Bitcoin payments says that there are about $2 million in transactions per day using the cryptocurrency.
While Bitcoin has experienced massive growth over time, it hasn’t been consistent. It has been extremely up and down. Just last year it’s highest and lowest points were 19 points apart, a much wider gap than most stocks. Still, those that have decided to weather the storm are making money and it is still growing overall.
The question here is if the Bitcoin’s surging value will change its public view and increase how often it is used by consumers. This would be concurrent with similar situations in other markets. One place where the currency is being used effectively is in developing countries with new economies, because fewer people have credit cards and they don’t trust their country’s currency yet. This may be one area where Bitcoin will see growth in use on the consumer level in the future.