Bitcoin [BTC] transaction cost will go up: Global Data’s ‘Thematic Research’

Global Data, a research firm based out of London recently released an elaborate study, called ‘Cryptocurrencies – Thematic Research’ explaining the painful fate of cryptocurrencies and its empty promises. The document also claims to bust all myths regarding the same.

The Chief Analyst of Global Data, Gary Barnett also spoke on the matter. He outrightly claimed that cryptocurrency transactions do not eliminate the mediator, or work at low costs. He said:

“Many of the most basic claims made by proponents of cryptocurrencies simply are not true. We are told that cryptocurrencies speed transfers up, that they help to eliminate middlemen and that they are free of cost, but none of this is true.”

The analyst also cited an example to explain his point of cryptocurrency transactions not being free of cost. He stated that Bitcoin’s cost per transaction at its pinnacle reaches up to $50 which is not ideal for a transaction made to buy $25 worth of groceries. Barnett believes that the Bitcoin transaction cost will essentially go up as the number of transactions also go up on the Bitcoin network.

The firm has also flipped the scalability switch of the crypto world, raising concerns on the issue. However, the crypto community has not backed out of facing the problems of scalability. The Lightning Network is just one example of solutions innovated to make cryptocurrency transactions more scalable on the work.

Hitting another nerve, where a lot of debates are going on regarding cryptocurrencies actually being a currency or not, Barnett said:

“No cryptocurrency is widely accepted and transacted. The number of retailers and businesses that accept cryptocurrencies as payment for goods and services is vanishingly small, and those that do typically report very low volumes of cryptocurrency transactions by comparison to other means of payment.”

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