Use bitcoin as a means of payment is declining, these cryptos became more popular » Crypto Insiders

BitPay is one of the largest payment service providers where bitcoin (BTC) and other cryptocurrencies can be used as a means of payment. According to Bloomberg Bitcoin’s dominance as such a means of payment has declined sharply in 2021. Where previously almost all crypto payments were made via BitPay in the form of bitcoin, other cryptocurrencies have made some serious catching up in the past year.

BitPay crypto payments

BitPay was founded in 2011 and has grown 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 offering the ability to facilitate payments with crypto.

Also, BitPay can act as a ‘barometer’ for the overall crypto industry. By analyzing transaction volume figures, certain insights about the current state of the crypto industry can be obtained.

This shows, for example, that in 2021 a lot less use was made of bitcoin as a means of payment compared to 2020. At that time, 92% of all payments via BitPay were made in the form of bitcoin. Meanwhile, this has fallen to just 65%.

That is not to say that less has been paid with cryptocurrencies, but that other cryptocurrencies besides bitcoin have become more popular. Bitcoin has simply lost dominance. Mainly ethereum (ETH) in stablecoins made an advance as a means of payment 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 figures about the payment behavior of consumers strongly suggest that many crypto investors no longer see bitcoin as a means of payment. 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 price increase of bitcoin in 2021, many investors did not see the point of using bitcoin for payments. Instead, it was chosen to hold bitcoin in the hope that it would be worth more in the future.

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