Report: Cryptocurrency Transactions Set to Shrink This Year

February 4, 2024 by

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Digital currency transactions are expected to see a steep decline in value this year to just more than $30 billion, according to a recent report released by Juniper Research.

Cryptocurrency transactions hit more than $71 billion in 2014.

The study, The Future of Cryptocurrency: Bitcoin & Altcoin Impact & Opportunities 2015-2019, attributed the decline to the combined effects of Bitcoin theft, exchange collapses, and regulatory concerns around digital currency’s role in financing dark web purchases.

Last year’s increase in altcoin activity was mainly due to brief spikes in transactions in the first quarter in Auroracoin, Litecoin, and Dogecoin, the report said.

However, the report argued that currency values will likely stabilize with the introduction of licensed, regulated exchanges, which will also lead to an increase in retail transaction adoption.

While payment giant PayPal has now allowed US consumers to buy digital items with Bitcoin, virtual currencies will still struggle in gaining traction beyond a tech-savvy and/or libertarian demographic, it added.

The report also identified a longer term role for digital currency protocols in the broader payment space.

Dr. Windsor Holden, author of the report, said: “It is likely that we will see the technologies behind cryptocurrency deployed in areas such as real-time transactional settlement. Ripple Labs is already focusing overwhelming on that approach and in the medium term we may see a role evolution to this end amongst other cryptocurrency players.”

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