Public cryptocurrency blockchains will be liquidated more than ever in 2020 and have already exceeded $ 1.3 trillionaccording to data.
The numbers collected by the analysis company Messari on July 21 show this Bitcoin (BTC) has so far processed $ 712 billion this year, while Ether (ETH) has processed $ 147 billion.
Messari: Blockchains have not “failed” as payment systems
The Ethereum network, which supports stablecoins, including market cap leader Tether (USDT), added another $ 423 billion. The increase in value for combined stablecoin transactions is striking. The first seven months of 2020 were above the previous year’s $ 337,000 million and 2018 $ 146,000 million.
For Messari The overall statement of settlement is a strong rejection of the concept that cryptocurrencies cannot compete with legacy systems as a means of payment.
“”Many people think that blockchains have failed as payment systems. The typical argument is: “You can’t buy a cup of coffee with Bitcoin, so it failed as a payment system,” he summarized.
In this reasoning, cryptocurrencies like Bitcoin and Ether also suffer from extreme volatility, which makes it impossible for them to serve as a means of payment. Both premises are not entirely inaccurate, but the conclusion is definite. In fact, it’s wrong by $ 1.3 trillion. “
Comparison of the public blockchain settlement. Source: Messari / Twitter
The researcher Ryan Watkins in turn argued this It was inappropriate to compare blockchains with payment networks like Visa.
A better comparison would be the fiduciary world settlement systemslike Fedwire.
“The purpose of these systems is Fully guarantee payments so that they cannot be rejected, canceled or returned without the recipient’s consentand must be liquidated immediately, “he wrote Twitter.
Eliminate fiat links
Payments from cryptocurrency consumers are still firmly in the investigative phase. Many of the top options are a “bridge” to the “Fiat”, for example crypto debit cards.
Thisand everything else that depends on the economy of the “Fiat” They are also subject to disruptions due to the central control of the underlying infrastructure.
As Cointelegraph reported The liquidation of the German Wirecard earlier this month temporarily led to debit cards in European cryptocurrencies no longer working..
Decentralized cryptocurrenciesand specifically Bitcoin, should make it impossible for third parties to control network activity.