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According to data from Bitpay, one of the leading cryptocurrency payment processors, the use of Bitcoin as a payment digital currency has declined significantly. While most purchases in 2020 have been made with Bitcoin, this dominance has waned, opening room for other tokens and currencies, such as Ethereum and stablecoins, to enter the crypto payments space.
Bitcoin payment usage to decline in 2021, Bitpay states
The use of Bitcoin as a digital payment currency has declined since 2020. That’s the conclusion Bitpay, one of the leading cryptocurrency-based payment processors, came to when reviewing the figures left by the market last year.Bitpay tells Bloomberg Bitcoin’s dominance of purchases on its platform fell from 93% in 2020 to 65% in 2021. Nearly a third of the loss of its dominance has to do with the entry of other currencies into payments.
The rise of stablecoins and the popularity of some meme coins last year also made their way into payments, albeit to a lesser extent. Bitpay explained that users of the platform used ether to pay for 15% of purchases, while stablecoins accounted for 13% of payments last year.other newcomers like Shiba Inu, Dogecoin, while Litecoin accounted for 3% of payments.
Crypto payments in general are on the rise
using Bitcoin (bitcoin) payments have definitely declined in 2021, but in general the use of cryptocurrencies for payments has increased. Bitpay’s total payment volume in 2021 increased by 51% year-on-year. This is the result of the popularity of cryptocurrencies and the price increase in the market last year. In this regard, Bitpay CEO Stephen Pair said:
Our business ebbs and flows to a certain extent with price fluctuations, and when prices drop, people tend to spend less. Due to the recent pullback, we have not experienced this much volume drop.
Bitpay is one of the most recognized crypto payment companies, managing a large number of sales, but it still pales in comparison to traditional payment companies like Visa and Paypal. But for Pair, the field is still young and the company is very well positioned for the future. He declared:
We really like where we are strategically. The space is still young. Much of this has to do with our perception of time. In the next few years, we may see very substantial growth.
Other traditional companies have also entered the crypto payments space.Paypal Announce It will start processing cryptocurrency-based payments in March.
What do you think about reducing the use of Bitcoin for payments? Let us know in the comments section below.
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