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Commercial Use of Bitcoin Cash Payments has Dropped: Analytics Firm

Last Updated March 4, 2021 3:33 PM
Jimmy Aki
Last Updated March 4, 2021 3:33 PM

Cryptocurrency advocate Roger Ver, often referred to as Bitcoin Jesus is having a tough time with the adoption of Bitcoin Cash (BCH).

In a report published on Bloomberg , blockchain analytics firm Chainalysis says the Bitcoin fork is barely being used in commerce.

Bitcoin Cash was forked from Bitcoin over a year ago. At the time, Ver had converted his holdings into Bitcoin Cash, telling everyone who cared to listen that he had switched allegiance to BCH. He even overhauled his Bitcoin.com website, to focus on the cryptocurrency.

In a review conducted by the firm on the world’s 17 largest crypto merchant processing services such as BitPay and Coinfy, they found a reduction in Bitcoin Cash payments from $10.5 million in March 2018 to $3.7 million in May. Bitcoin payments also slumped from a peak of $412 million in September 2017 to $60 million in May 2018.

The decline follows the slump in global digital currency prices this year which has seen Bitcoin losing over 60 percent of its value, while BCH lost around 75 percent.

“There are fewer users of Bitcoin Cash, fewer holders,” Kim Grauer, senior economist at Chainalysis told Bloomberg in a phone interview.

Gauer believes the adoption has been low due to the concentration of ownership. Chainalysis records about 56 percent of Bitcoin Cash being controlled by 67 wallets not located on crypto exchanges. Of those wallets, two of them hold between 10,000 and 100,000 Bitcoin Cash.

Ver has remained resolute in his quest to drive market adoption of BCH. Last week, in a YouTube video  with Bitcoin.com’s lead developer Corbin Fraser, Ver had unveiled the Wormhole Cash protocol, a tool that allows developers issue tokens on the Bitcoin Cash blockchain. Ver and Fraser went further to suggest the crypto publication could launch an ICO.

” ICOs and CryptoKitties are probably coming to Bitcoin Cash in the near future,” Fraser had commented in the video, to which Ver responded:

“They’re probably coming to Bitcoin.com, too. We’ve been thinking about having our own ICO for maybe the games part of the platform; maybe we’ll issue a token and pay dividends or use part of the money… to buy back the tokens on the open market.”

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