Jamie Redman,
Bitcoin payment processor Bitwala revealed on September 8 that even though it accepts 40 altcoins, the startup will focus most of its interest on the Bitcoin network. The firm states while everyone is excited about these technologies “nobody uses them.”
Bitwala Says Altcoin Volumes Are Flat
Bitwala announced through its blog that while it will still accept altcoins, it won’t be dedicating any resources towards integration or marketing towards them.
The announcement noted that this includes all altcoin token assets listed under Bitcoin on CoinCap. While Bitwala does not wish to drag altcoins through the mud, it must face the fact that no one is using these cryptocurrencies. This solidifies the importance of Bitcoin’s vast network effect and significant infrastructure. Bitwala added:
So here’s our experience with Altcoins: Nobody is using them! We had heard this rumor before, from other Altcoin accepting sites, like BitcoinCommodities. It takes some work to implement the option to accept them, and more work to market them. We weren’t exactly sure if it would be feasible to do so.
The company said when it announced altcoin integration they did see a significant response from communities such as Ethereum, Dash, and Monero. However, when it came to actual numbers in turnover within the past two months, there was a stark contrast. Altcoin turnover for the startup was a touch more than 3 BTC total or $2,000 USD. With Bitcoin, the company had a total turnover of $2 million USD, a larger market than all 40 altcoins combined.
Bitwala said it got a few hits on the website and minor press coverage for offering altcoin payments, but had experienced little to no volume. It received “0.1 percent turnover in altcoins. We charge a flat fee of 0.5% per transaction. Do the math. You’ll probably get the point.” Bitwala will be focusing its efforts mainly on Bitcoin from here on out.
Another example Bitwala gave concerning altcoins’ lack of use is when it announced Steem integration with its debit card. The company explained that, while anyone can use Steem to pay for pretty much anything worldwide, “nobody does.” Bitwala said their announcement of Steem integration made waves with the Steemit community but it had seen “marginal usage so far.”
Bitcoin Will Be The Main Focus For Bitwala
The Bitcoin community, of course, was thrilled with the announcement as many have felt burned by companies like Coinbase and others accepting altcoins. One Reddit user encouraged the company to stop accepting altcoins outright. “Focus is a good thing,” they said. “Decision paralysis is a real phenomenon.”
Bitwala doesn’t seem to be giving up on altcoins entirely though, as the company will still work with Shapeshift and integrate its exchange service. However, it has realized – like many people within the cryptocurrency community – that Bitcoin is still the King and will be for quite some time.