Research by Chainalysis finds that only 1.3% of bitcoin transactions so far in 2019 came from merchants. The remaining 98.7% of volume is all on the exchanges.
That means almost no one is using bitcoin to buy things. The bitcoin economy is still mostly about speculation, not a global payments system. The figures are based on data from New York-based blockchain researcher Chainalysis Inc. and are based on the first four months of 2019.
However, it could be that the new economics of a vigorously deflationary currency like bitcoin that drive this market behavior, not peer pressure. At the bottom of the culture of “hodlers” who advocate accumulation one may find it is the “invisible hand” of Adam Smith who guides these economic decisions based on specialized knowledge and self-interest.––and a rather self-evident economic principle called “Gresham’s Law.”