Dear clients,
Cryptocurrency enigmatic originator Satoshi Nakamoto’s dream of an alternative payment unit is starting to take shape.
The number of bitcoins held on the Lightning Network, a payment protocol on top of the blockchain, has jumped by two-thirds over the past year to an all-time high of 5,580 coins, according to data from cryptography firm The Block.
Cryptocurrency payment specialists are also seeing high volumes. US-based BitPay said transaction volumes were up 18% last year compared to 2021. CoinsPaid reported that transaction volumes in the fourth quarter of 2022 are up 32% year-over-year.
According to experts, development in terms of building crypto payments continues at a rapid pace, even if it has gone fairly unnoticed due to volatility in the broader market.
Price volatility, slow processing speeds, and constant regulatory uncertainty are some of the factors that have made cryptocurrencies unwieldy as a means of payment. Few sellers price goods or services in cryptocurrency. It also raises the question of whether blockchains are ready to deal with the stress of processing thousands of transactions at once, especially without fees skyrocketing.
However, proponents say bitcoin offers lower transaction costs and faster speeds than traditional cash, especially for cross-border transfers. In addition to Bitcoin, other cryptocurrencies, including stablecoins that are pegged to the value of traditional currencies, have become popular options, especially for cross-border payments, money transfers, and in emerging markets where the value of local currencies has been hit by inflation.
