All the major media outlets have been drawn towards the rapid decline in the prices of cryptocurrencies, with causes being cited as exchange hacks, ICOs, tax selloffs and adverse regulations. Some claim that this is the beginning of the end, while on the other hand there are people like Brian Kelly, who think that it is too early to call this decline in prices as the end of cryptocurrencies.
He further added that the USD exchange process of cryptocurrencies are on the brink of bear market territory, but things need to be kept in perspective. In order to substantiate his point that prices of cryptocurrencies may be down over the last few months, but they are significantly higher than the previous year, he asked a question and answered it himself, “Do you know where we were a year ago?” to which he answered, “$2,500.” He further added regarding the regulatory framework that “They’re cleaning up the system. They’re making sure it’s more robust. Making sure it’s better for people”.
With all these developments going on, one fact is being consistently ignored by the media houses that the primary aim of cryptocurrency is to be a peer to peer decentralized payments system, which reduces the importance of fiat exchange prices. Cryptocurrencies can be divided into small denominations such as one Satoshi (a hundredth of a millionth BTC) for day to day usage. In fact, it is the total number of transactions that are done every day that matter more than the fiat price in the bid for cryptocurrencies to become a peer-to-peer digital payments system.
The number of transactions that are done every day is a better indicator of how much the cryptocurrency is being used in everyday life and gives value and stability to it as a medium of payment. A higher number of transactions every day provide a better indication as to how consumers are reacting to the transaction fees, security, confirmation times and acceptability by merchants.
In case of the “Dash,” a cryptocurrency, the number of transactions has surpassed the level of 35,000 transactions per day, more than the combined total of Litecoin and Monero. With the focus on everyday adoption globally, Dash has appealed to so many users as it has been successful in maintaining reduced transaction fees, quick confirmation times and safety. It enables it to be more attractive to customers as Dash has maintained lower transaction fees and usage charges in comparison with other cryptocurrencies.