Bitcoin Cash (BCH) showing a significant slump in commerce
BCH was introduced around a year ago and since its launch it has talked about in circles, facing controversies. The commercial use of Bitcoin Cash (BCH) has taken a major dip, as payments dropped from $10.5 million in March to $3.7 million in May, said blockchain analytics firm Chainalysis, reported Bloomberg. The conclusion of the report was done after 17 of the leading crypto payments platforms like BitPay, Coinify and GoCoin noted the difference.
Kim Grauer, senior economist at Chainalysis said that commerce is seeing a relatively low adoption, and according to him concentrated ownership has its role to play in it. “There are fewer users of Bitcoin Cash, fewer holders,” he said. The analysis firm said that about 56 percent of Bitcoin Cash that is controlled by 67 wallets are not located on exchanges, of which two wallets hold between 10,000 and 100,000 BCH. Although the slump in commerce might be a speed breaker for the cryptocurrency and is facing more than eight percent drop in the last 24 hours (at the time of writing), but it is still in the fourth position in Coin Market Cap.
The situation of Bitcoin Cash can be connected to the overall market state of the current year when all cryptocurrencies in the market are suffering.
Alejandro de la Torre, vice president of business operations at BTC.com, told Cointelegraph about the importance of the fork: “The ability to make forks while keeping the community aligned was a great achievement. By providing much greater bandwidth per block by first increasing to 8 MB and then again to 32 MB. This additional room is more than what is needed right now, but BCH seems to be looking ahead and getting ready to process high volumes of traffic. The greater block size also enables BCH to store more information in each transaction, giving the blockchain space to write smart contracts on-chain at low costs.”
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