According to a report from Juniper Research, the total number of active Bitcoin users across the world is expected to reach 4.7 million by the end of 2019.
However, ‘The Future of Cryptocurrency: Bitcoin & Altcoin Impact & Opportunities 2015-2019’ report claims that despite the growth, the usage of the virtual currency will be dominated by exchange trading, with only a small group will using the currency for retail trading.
According to the report, the currency’s activity levels from offline and online deployments are extremely low, despite retailers accepting Bitcoin payment.
The author, Dr Windsor Holden, said: "While average daily transaction volumes have increased by around 50% since March 2014, the indications are that much of this growth results from higher transaction levels by established users rather from any substantial uplift in consumer adoption."
The report blames the currency’s association with illegal purchases and fraudulent activities as one of the hurdles for mass adoption, followed by the lack of understanding among end users about the cryptocurrency.
On the supply side, the report observed that most of the Bitcoins are with early speculators, with Bitcoin mining profitability threatened due to its volatile nature, lower yields and rising electricity costs.
The report highlighted that introduction of licensed, regulated exchanges is likely to help increase the adoption of Bitcoins in retail transactions.
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