Bitcoin usage as a payment method is declining, and these cryptocurrencies are becoming more and more popular » Crypto Insiders

BitPay is one of the largest payment service providers where Bitcoin (BTC) Other cryptocurrencies can be used as a means of payment. According to Bloomberg The dominance of Bitcoin as a means of payment declined sharply in 2021. Previously, where almost all crypto payments were made via BitPay in the form of Bitcoin, other cryptocurrencies have made some catch-up in the past year.

BitPay Crypto Payments

BitPay was founded in 2011 and has evolved over the years into a name to be reckoned with. While its annual volume does not come close to traditional payment service providers such as Visa and MasterCard, it is an important company that offers the ability to facilitate payments using cryptography.

Also, BitPay can act as a “benchmark” for the crypto industry in general. By analyzing the transaction volume figures, certain insights into the current state of the crypto industry can be obtained.

This shows, for example, that in 2021 Bitcoin was used much less as a payment method than in 2020. At that time, 92% of all payments made via BitPay were made in the form of Bitcoin. Meanwhile, this is down to only 65%.

This does not mean that less was paid through cryptocurrencies, but other cryptocurrencies besides Bitcoin are becoming more and more popular. Bitcoin simply lost its dominance. on the principle Ether (ETH) in a stablecoins It gained popularity as a payment method in 2021. Ethereum was used in 15% of payments in 2021 and stablecoins in 13%. The remaining 3% consisted mainly of Dogecoin (DOGE), Shiba Inu (SHIB) and Litecoin (LTC).

Bitcoin as an alternative

These numbers on consumer payment behavior strongly suggest that many crypto investors no longer see bitcoin as a payment method. Today, Bitcoin, like gold, is often seen as a store of value, or store of value.

Whales have never held more bitcoin pic.twitter.com/a9jxAV3Mxp

– zerohedge (zerohedge) January 16 2022

Due to the strong increase in the price of bitcoin in 2021, many investors did not like to use bitcoin for payments. Instead, he was chosen to hold bitcoin in the hope that it would be more valuable in the future.