It appears that Bitcoin is not being used for its intended purpose, highlighting a clear Bitcoin payment method decline. Reports from Reuters shows that the places that accept Bitcoin for the purpose of commercial payments have drastically dropped this year. This report is coming at a time when the original cryptocurrency is beginning to achieve stability, a basic feature of any currency used in payment.

Data from Chainalysis, a blockchain research firm, shows that the value of Bitcoins handled by major payment processors dropped nearly 80 percent in the year ending in September. This suggests Bitcoin is struggling to move from being a speculative asset to a serious alternative to state-issued money.

Bitcoin struggles as payment method

Several months of relative calm in the volatile cryptocurrency market raised hopes. Many believed Bitcoin would become widely accepted as a payment method. But this did not happen. The collapse of Bitcoin as a mode of payment has pushed big finance and crypto insiders to look for better technology. They want infrastructure that can help Bitcoin take off as a way to pay.

UBS strategist Joni Teves said, “There would have to be a stability requirement if it is to become another form of money.” She added, “One key factor is scalability. Bitcoin must handle the value and volume of transactions that money usually processes.”

Current blockchain technology records and validates all Bitcoin activity. However, it can only process a fraction of the transactions per second that major credit card companies handle. This limits Bitcoin’s mass adoption.

Bitcoin’s recent 30 percent price plunge shows it is still not stable. But this month’s price stability contrasts with last month, when Bitcoin was more stable than US stocks.

Decline in Bitcoin commercial use

But in spite of the increased stability, data from Chainalysis revealed that “the value of Bitcoin payments collapsed to $96 million in September from a December high of $427 million.”

As part of its research, Chainalysis surveyed 17 Bitcoin payments processors including one of the biggest – BitPay.

In conclusion, the dream of Satoshi Nakamoto that foresees Bitcoin as a serious alternative to fiat currency is fast eroding. This Bitcoin payment method decline is evident, as research by Chainalysis revealed that the usage of Bitcoin for commercial payments has seriously dwindled this year.

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