Public crypto-currency blockchains will settle more in 2020 than ever before and have already exceeded $1.3 trillion, according to the data.
Compiled by analyst firm Messari on July 21, the figures reveal that Bitcoin (BTC) has liquidated $712 billion so far this year, while Ether (ETH) has liquidated $147 billion.
Bitcoiners are not looking for a reserve of value, says gold defender Peter Schiff
Messari: Blockchains have not „failed“ as payment systems
The Ethereum network, which supports stablecoins, including the market capitalization leader Tether (USDT), has added another USD 423 billion to the total. The growth in the value of combined stablecoins transactions is conspicuous; the first seven months of 2020 exceeded last year’s total of USD 337 billion and 2018 USD 146 billion.
For Messari, the overall settlement record is a firm rejection of the concept that cryptomonies cannot compete with legacy systems as a means of payment.
„Many people think that blockchains have failed as payment systems. The typical argument is something like ‚you can’t buy a cup of coffee with Bitcoin, so it has failed as a payment system,'“ he summarized.
„Along this line of argument, crypto currencies like Bitcoin and Ether also suffer from extreme volatility that makes them unable to serve as a means of payment. Both premises are not entirely inaccurate, but the conclusion is definitely so. In fact, it’s wrong about $1.3 trillion.“
Media agency specializing in crypto launched in Latin America
For his part, researcher Ryan Watkins argued that it was not appropriate to compare blockchains with payment networks such as Visa.
A better comparison would be the settlement systems of the trust world, such as Fedwire.
„The purpose of these systems is to fully guarantee payments so that they cannot be repudiated, reversed or returned without the agreement of the recipient, and must be settled immediately,“ he wrote on Twitter.
More than 7 million Americans own BTCs but have none in their retirement accounts
Removal of fiat links
Consumer payments in cryptosystems are still firmly in the discovery phase. Many of the major options represent a „bridge“ to „fiat“, such as crypto-debit cards.
These, and anything else that depends on the economics of „fiat“, are also subject to disruption due to the centralized control of the underlying infrastructure.
As Cointelegraph reported, the liquidation of Germany’s Wirecard earlier this month temporarily caused debit cards in European cryptom currencies to cease to function.
Decentralized crypto-currencies, and specifically Bitcoin, are designed to make it impossible for a third party to control network activity.