Bitpay Adds Bitcoin Cash Support An Alternative To Bitcoin

Bitpay, global Bitcoin payment service provider, in a blog post announced that the company has added support for Bitcoin Cash (BCH). It will be the first time in since its inception that it will process payment in a digital token other than Bitcoin (BTC).

Bitpay Merchants To Accept Bitcoin Cash Payments

Bitpay is a go-to company for traditional businesses that want to accept digital currencies as payment. The point-of-sale company, immediately converts digital currency payments to fiat money, therefore lowering the risk for merchants from the volatility of the chosen cryptocurrency.

According to the company blog, the Bitcoin fork - Bitcoin Cash will allow risk-free transactions. The blog read,

“Bitcoin Cash will give BitPay merchants another great way to receive blockchain payments from customers around the world, without the risk of credit card fraud or chargebacks,”

Bitpay blog

The Atlanta-based company is planning to add support for more cryptocurrencies. However, for now, the BCH support offers Bitpay merchants a choice of two payment options. Last year in December, the payments service provider company announced it would add support for multiple digital currencies, starting with BCH, due to skyrocketing fees on BTC network. However, fees have retreated from their incredible highs in December.

Bitcoin Cash - A payment friendly Blockchain

At the time, several businesses that accepted BTC either halted or stopped the service due to high transaction fees. Causing Bitpay to publicise its suport of BCH. Although the layer two payments network - Lightning Network - built on top of the bitcoin blockchain can significantly reduce transaction fees and can process transactions instantly, the protocol is still not production ready.

The company blog post highlights

“Since Bitcoin Cash costs only pennies (or less) for customers to send, it’s great for BitPay merchants who want to accept blockchain micro-transactions for things like video games, food delivery, or app downloads.”

Bitpay blog

Bitcoin Cash support is immediately effective and therefore users will have two payments options to pay with BTC or BCH. According to blog, the company also plans to add Bitcoin Cash to a “mass payouts product”, where businesses will make a single batch deposit and Bitpay will issue payouts, cutting down the paperwork.

Lightning Network is one of the main competitors when it comes to making payments. Recently, LN nodes outnumbered active nodes running on the BCH network. Nevertheless, Bitpay users now have secondary payment option - Bitcoin Cash - as with all markets the added competition is healthy.

Top-Tier Crypto Exchanges' Volumes Climb Back to One-Third of Total Market Share

The aggregate trading volume of top-tier cryptocurrency exchanges has increased by 61.2% during the month of January, while the volume of lower-tier crypto exchanges increased 46.4%.

According to CryptoCompare’s January 2020 Exchange Review, the trading volume of top-tier crypto exchanges – those rated AA-B according to its Exchange Benchmark – climbed last month to represent 29.3% of the total trading volume in the space.

The rise is significant as in December, the cryptoasset data provider’s report showed top-tier cryptocurrency exchanges were seeing their trading volumes drop as they lost market share to lower-tier crypto exchanges, those rated C-F. At the time, they represented 26.4% of the cryptocurrency market’s total trading volume.

top tier trading volumesSource: CryptoCompare Exchange Review

The report further found that exchanges that charge taker fees represented 76% of the total volume last month, while those that implement the controversial trans-fee mining (TFM) model represented 22%.

It also found that regulated bitcoin derivatives are still dominated by the CME, whose total trading volumes went up 145.6% since December. Grayscale’s Bitcoin Trust product (GBTC) saw its total trading volume rise 131% since December.

As for derivatives trading on cryptocurrency exchanges, in January OKEx represented the majority of daily derivatives volumes, trading $4.96 billion per day and capturing 31.1% of the total market share. Huobi traded $4.29 billion a day for 26.9% of it, while BitMEX traded $3.13 billion for 19.6%.

Pure crypto-to-crypto exchanges notably represented 75.4% of the market’s trading volume, in a similar proportion to the last two months. The stablecoin space, per the report, is still dominated by Tether’s USDT, as it still represents 94% of the total Bitcoin trading volume into the top four stablecoins.

Decentralized Exchanges Lose Trading Volume

CryptoCompare’s report also addresses decentralized cryptocurrency exchanges, noting IDEX was the largest one in January. It traded a total of $10 million as its trading volume went up 25.4%, and it was followed by Switcheo and Bitsquare. While these platforms’ volumes went up, DEXs as a whole have been losing volume.

dex CHARTSource: CryptoCompare Exchange Review

According to the report they have diminished 88% since early 2019 to now represent a small fraction of the global spot exchange volume. In January, decentralized trading platform traded $17.8 million in total, representing 0.003% of the market. In January 2019, for comparison, they traded $148 million.

Featured image via Unsplash.