Bitpay statistics show that the use of Bitcoin for payments is diminishing
By Admin
The use of Bitcoin as a digital currency for payments has declined significantly, according to figures released by Bitpay, one of the leading cryptocurrency payments processors. While most purchases were made with Bitcoin in 2020, this dominance has waned, opening the way for other tokens and currencies, such as Ethereum and stablecoins, to enter the crypto payments space. The use of Bitcoin for payments has declined in 2021. The use of Bitcoin as a digital payment currency has declined since 2020.
This was the conclusion reached by Bitpay, one of the leading cryptocurrency-based payment processors, when reviewing the numbers left behind by the market last year. Bitpay told Bloomberg that Bitcoin's dominance in purchases on its platform fell from 93% during 2020 to 65% in 2021. This loss of nearly a third of its dominance has to do with the entry of other currencies into the payment arena.
The rise of stablecoins and popularity that some meme coins enjoyed last year has also arrived in the payments arena, albeit in a minor way. Bitpay explained that platform users paid with ether for 15% of purchases, while stablecoins accounted for 13% of payments last year. Other new entrants such as shiba inu, dogecoin, and litecoin accounted for 3% of payments.
Cryptocurrency Payments, in General, are on the Rise While the use of Bitcoin (BTC) to make payments has certainly declined during 2021, the use of cryptocurrencies for payments in general has increased. The total volume of payments made by Bitpay in 2021 presented a 51% increase year-on-year. This is a result of the popularization of cryptocurrencies as well as the price rise that the market witnessed last year.
In this regard, Stephen Bearer, CEO of Bitpay, said: "Our business goes back and forth somewhat with price. When the price goes down, people tend to spend less. We haven't seen a significant decline in trading volume with this recent decline."
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Bitpay is one of the most recognized crypto payments companies and manages significant sales volumes, but it is still a dwarf company compared to traditional payments companies like Visa and Paypal. But for a partner, the field is young and the company is very well positioned for the future. “We really like where we are strategically,” he declared.
This space is still very small. A lot of it has to do with what we think about timing. And in the next couple of years, we're likely to see very significant growth. “ Other traditional companies have also entered the crypto payments space.
PayPal announced that it will begin processing cryptocurrency-based payments in March. Source
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