An overall increase in bitcoin transactions has been observed in the last few days. According to Blockchain, the number of transactions per day on December 2nd surpassed 103,000, compared to 80,934 transactions at the end of November.There are several recent events that may have brought on this sharp increase. The bitcoin “Tipping Tuesdays” initiative which was started by a user on Reddit about a month ago, has increased overall awareness about the digital currency and has shown a sharp increase in consumers’ bitcoin spending, according to Cointelegraph. This concept, although not a new one, allows bitcoin users to tip others using the cryptocurrency. The ChangeTip team wrote:
The ability to send small amounts of money over the Internet is one of the most valuable features of Bitcoin technology, as traditional payment systems have never allowed this type of online behavior. Social tipping enables content providers to receive additional payment for creating valuable content and enables users to express their gratitude in a new way.”
Now, a new event, “Bitcoin Giving Tuesday,” which is raising money for several different charities, has increased bitcoin activity even more. As stated previously, bitcoin transactions on the blockchain were reported to exceed 103,000 on December 2nd. According to Cointelegraph, some of the principal organizations involved in fostering this events are BitPay, Bitcoin Foundation, Circle, BitGive, and ChangeTip.
As stated by Barry Silbert, an investor in Bitcoin companies, the number of digital currency transactions in the beginning of November (which equaled about 50 million) has nearly doubled since last year. According to Coindesk, the number of transactions has been steadily increasing – rising from 93,667 on October 28th to 98,921 on November 28th and continues to rise.
According to CryptoCoins News (CCN), Black Friday may have also impacted the increase in bitcoin use and rising transaction numbers. It has been reported that the price of bitcoin rose to about $381 on Black Friday. Online retailers like Newegg and Beepi have offered many deals that could be paid with bitcoin and have extended some deals to Cyber Monday as well. It is believed that the more bitcoins current users possess, the more the whole system grows. According to CryptoCoins News,
The data from Bitcoin Black Friday 2014 will be released soon after the sales end, but it is already expected to be the biggest day in Bitcoin commerce.”
The increase in transaction costs may mean an increase in the whole payment system which can open even more opportunities to expand Bitcoin’s potential and acceptance among consumers.
Red more here – “Bitcoin Giving Tuesday: Transactions Hit Record Numbers, With Many to Charities,” (Armand Tanzarian, Cointelegraph).
Anna is a current student at The George Washington University in Washington, DC with a concentration in Marketing and Communication. She specializes in social media outreach and has experience working in government contracting.