• Bitcoin prices have been on the rise recently, which is a good sign of progress.
• The use of the Lightning Network has reached a new high, suggesting more people are using bitcoin as a form of currency.
• The original goal of bitcoin and other digital currencies was to provide an alternative payment system, but volatility has made it difficult for companies to adopt crypto payments.
Bitcoin Prices On The Rise
Bitcoin recently hit a six-month high and many investors are becoming more hopeful that the horrors of 2022 are finally being left behind for good. Additionally, adoption appears to be growing as use of the Lightning Network has hit a new high, indicating that people are beginning to view bitcoin as a viable form of currency.
Lightning Network Use
The heavy use of the Lightning Network suggests that bitcoin is now – at least on a somewhat regular basis – being viewed as a form of currency for purchasing goods and services. Richard Mico – US CEO of Banxa, a payment and compliance infrastructure provider – commented in an interview: “The development in terms of building out crypto payments has continued apace… Crypto is evolving into a viable alternative for more and more people around the world”.
Original Goal Of Bitcoin
It’s important to remember that while bitcoin and its crypto cousins have taken on either speculative or even hedge-like statuses in recent years, many were initially designed to serve as payment tools with the aim of pushing checks, credit cards, and fiat currencies aside. However, this process has been slow due to volatility issues making it hard for companies to accept payments in cryptocurrency.
For example, if someone walks into a store and buys $50 worth of merchandise with bitcoin then 24 hours later when BTC goes down from its price when purchased; the customer gets their product but the store loses money since they didn’t exchange it into fiat right away. This example highlights why stores may be hesitant about accepting crypto payments due to instability in prices over time.
Lightning Network Solution
In response to these problems, developers created the Lightning Network which provides smaller transactions faster than ever before so businesses can trust that they won’t lose money from volatile swings in cryptocurrency prices over time. Thus far this network appears successful with its widespread usage signaling progress towards achieving digital currency’s initial goals.