Juniper: Bitcoin Users Grow to 4.7 Million by 2019, “Adoption Limited”

bitcoinResearch firm has published a research report on Bitcoin utilization.  The research (you have to pay for it) predicts Bitcoin users will grow t0 4.7 million by 2019.  The firm sees “adoption limited to niche demographics”.  Juniper estimated the number of users at just 1.3 million at the end of 2014.  The authors believe that primary usage will be “dominated by exchange trading, with retail adoption largely restricted” as only certain demos adopt the digital currency.  Juniper described retail activity as “extremely low’.

Author Dr. Windsor Holden is quoted on the report;Windsor Holden

“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.”

Limiting factors cited include the difficulty in communicating the concept to Bitcoin payments to end users along with the association with “criminals for illegal purchases and money laundering was likely to act as a further deterrent to mass adoption”. The report also states the crypto currency market continues to be plagued by “pump and dump” currencies created solely as short-term investment vehicles

According to Juniper the report states that Bitcoins are being hoarded by early speculators and currency supply could be further restricted with Bitcoin mining profitability threatened by a combination of the cryptocurrency’s volatility, lower Bitcoin yields and rising electricity costs.

How to fix? Juniper says introduce licensed, regulated exchanges that would stabilize rates.

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