At the launch of Bitcoin, one of the strengths of this cryptocurrency was the ability to transfer this currency globally, with little or no cost. This is no longer the case today, as the Bitcoin transfer cost can sometimes exceed the PayPal and Western Union transfer fees.
Companies are now making efforts to use Bitcoin as a currency, even though the costs of transferring them are significant.
More and more companies are moving away from Bitcoin because of its high transfer cost. Yours Inc. recently decided to stop using Bitcoin as a payment method. The owner of the platform, Ryan Charles explained that the transfer fees of Bitcoins were too high and they should increase further. He added that this solution was less interesting than a transfer with Paypal or Western Union.
Yours Inc. is a company offering a rather particular service. Indeed, it allows writers to receive remuneration according to the number of their readers. But because of the small number of members, they can not afford to pay such fees with Bitcoins. The company chose Litecoin for payments. The Irish company specializing in Bitcart gift cards has also abandoned Bitcoin and uses the Dash.
Bitcoin shipping costs have increased nearly 19 times, from 13 cents per transaction to $ 2.40 in just one year. This rise has an impact on the development of emerging markets where cryptocurrency could make sense as in Venezuela and India.
Even in the big countries, we feel this increase. Bitcoin's usage fees make it a cryptocurrency that is not very popular with merchants who want to use this technology.