Bitcoin Usage To Plummet, Report Says

Juniper Research released a report on Wednesday forecasting that bitcoin transactions will sink from 2014’s more than $71 billion to around $30 billion by the end of 2015. The research consultancy noted that the currency will likely see a 58 percent decline in usage due to growing skepticism and mistrust.

Dark Web Scares Off New Users

The report’s author Dr. Windsor Holden cited the currency’s dismal PR over the past year, which has included several examples of its lacking security, as a key factor driving new users lower. Among other things, bitcoin has been known to be used for criminal behavior in dark web transactions due to its lack of organized regulation. Its association with questionable practices is something that will likely cause many to withdraw from using the currency.

Exchange Collapse Worries

Juniper also mentioned the irreparable damage done by the high-profile collapse of the Mt. Gox exchange. The firm noted that worries about hacking attacks and exchanges collapsing is a key concern for users.

Bitcoin Won’t Evolve Beyond The Tech Crowd

Bitcoin’s recent success in partnering with big names to offer payment options with the cryptocurrency is unlikely to help grow the currency’s user-base, according to Juniper. The report indicated that despite growing adoption among merchants, the currency itself is unlikely to find supporters outside the tech-savvy demographic that has already embraced it.

Bitcoin May Not Succeed, But Its Frame-Work Could

However, Juniper was positive on the possibilities for the technology that the currency runs on. Although Bitcoin may not be the currency of the future, Holden says the framework is likely to evolve into different industries as well as sparking other, more successful cryptocurrencies.