THE USE OF LITECOIN LOWER IN 2019 THAN THE YEAR BEFORE
According to the latest data from Bitinfocharts, last year saw as much as $100 billion in transactions on the Litecoin network. The amount is still lower from the yearly volume of 2018, although this is mostly due to the bull market that was still raging in January 2018.
Before the bear market kicked in and prices began to fall, he made transactions worth more than $ 5 billion daily. On the other hand, in the first half of 2019 daily operations averaged only 200-300 million USD.
Nevertheless, 2019 was a pretty eventful year for Litecoin. The project was halved last year, further increasing the speculative activity of the network. Ignoring these figures due to the fact that they do not correspond to the market conditions prevailing at the time, approximates the roughly equivalent value transfer between the two previous years.
It is also concluded that the interest of non-speculators in the network has increased. In fact, the base seems to be fairly well formed, with an average of about $ 100 million USD in operations per day. Meanwhile, the number of transactions averages around 21,000 per day.
This will mean that each operation will once again be comfortably maintained at around $ 5,000 on average. However, the situation is slightly different when average transaction values are included, mainly due to a few very high value transactions, where the average median increases and approaches $ 50 per transaction.
This will mean that most of the cost sent by the network comes from a small number of people with extremely high fortune or funds.
VOLUMES ARE NOWHERE NEAR TRADITIONAL PAYMENT PROCESSORS
$100 billion is an extremely massive number, in comparison.However, even this amount is relatively small compared to what traditional payment networks usually do every year. For example, Visa reported that in 2018 alone, Transactions worth more than $ 11 trillion have been executed. That's almost 4 times what Bitcoin managed to send in 2019.
Even in the best case, Litecoin operations cannot be compared with these types of figures. Of course, this also does not mean that they should be compared, since LTC is a cryptocurrency. Cryptos are still considered young, unregulated, and are equally used as young and unregulated core technologies.
They also lack acceptance and user-friendliness. Visa, on the other hand, is a service for fiat currencies that had decades to spread around the world. Fiat currencies are also fully regulated and even traditional. Another reason the comparison is not correct is that it does not take into account all costs sent in US dollars, but only a certain area of a much larger market.
However, even in the cryptocurrency markets there are still many opportunities for growth and development, and it may take years before they become serious competition and a real threat to Visa and other traditional payment systems.