A significant number of vendors
have accepted Bitcoin transactions. Yet, the digital currency still lacks impetus
in retail transactions.
There is no clear
indication that bitcoin can finally be used in purchasing principal commodities
and services. While merchants like Microsoft, Expedia, and online retailer Overstock.com
recognize the crypto currency, there has been very minimal increase in
purchases making use of the bitcoin.
The truth is this currency is
used mainly for Internet gambling, procurement of illegal merchandise and
services, and pure speculation.
Researchers from the Federal
Reserve disclosed in a recent market analysis that bitcoin is hardly used
for payments of mainstream products.
Last week, it was recorded
that almost 200,000 bitcoins swapped hands daily. However, only less than 5,
000 bitcoins or approximately $1.2 million in cost were utilized for retail
operations. A crypto currency technology firm based in
Hong Kong disclosed that
retail volume last year was predominantly flat.
Consumers are not inclined
to adopt the currency due to the popularity and convenience of credit cards.
Besides, bitcoins are seen more as investments instead of currencies that can
be used to buy real goods or pay for services.
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