News
New Report Finds That Bitcoin-Denominated Payments Are Still A "Fantasy"
Summary: A new report from BitMEX Research found that Bitcoin’s (BTC) increasing output precision is actually decreasing usage as a unit of account. The report analyzed a total of 1.3 billion transaction outputs from the last year, which amounts to 5.4 billion BTC worth $12 trillion. The report found that Over 70% of BTC outputs currently ...
A new report from BitMEX Research found that Bitcoin’s (BTC) increasing output precision is actually decreasing usage as a unit of account.
The report analyzed a total of 1.3 billion transaction outputs from the last year, which amounts to 5.4 billion BTC worth $12 trillion. The report found that Over 70% of BTC outputs currently use the highest degree of precision possible of one satoshi (0.00000001 BTC), compared to 2012 when this figure was only 40 percent.
One of the main goals of Bitcoin adoption is its usage as a unit of account, where all payments are denominated in BTC, instead fiat currencies. However, according to the report, “If unit of account status is achieved or becomes more prevalent, then presumably the degree of precision should reduce rather than increase.”
The analysts behind the report divided Bitcoin into three adoption phases: medium of exchange, store of value and unit of account. Noting that even the first step of medium of exchange is still ongoing, which led analysts to conclude that “At least for now, unit of account status, is still somewhat of a fantasy.”
By Ramsey Baker
Tags: account status,Bitcoin,Fiat,Payments,Satoshi
Link: New Report Finds That Bitcoin-Denominated Payments Are Still A "Fantasy" [Copy]
