Bitcoin’s popularity as a digital payment dropped in 2021

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The use of Bitcoin, the most valuable cryptocurrency by market capitalization, in Bitpay merchants fell from 92 percent in 2020 to 65 percent in 2021.

Consumers and businesses are increasingly using digital tokens other than Bitcoin to make purchases, according to Bitpay, one of the world’s largest crypto payment processors. According to the crypto business, the adoption of Bitcoin in Bitpay merchants fell from 92 percent in 2020 to 65 percent in 2021. Purchases of Ether, stablecoins, and Dogecoin, Shiba Inu, and Litecoin, on the other hand, accounted for 15%, stablecoins for 13%, and Dogecoin, Shiba Inu, and Litecoin accounted for 3%, according to Bloomberg.

Stablecoins have become more popular among businesses for cross-border payments.

Since November of last year, businesses have begun to use stablecoins more for cross-border payments as crypto values have fallen. Consumers also gravitate toward stablecoins since their value remains stable, reducing risk. The present trend indicates that people prefer to keep Bitcoin rather than spend it. Apart from the fourth quarter, Bitcoin prices increased by 60% last year. According to Bitpay, most cryptocurrency transactions in the previous year were for luxury items such as jewelry, watches, vehicles, and yachts.

A growing number of merchants now accept crypto payments.

A growing number of merchants now accept crypto payments. BitPay partnered with VeriFone last year to accept digital currency at its terminals in various businesses. BitPay, for its part, is displaying signals of optimism. It just hired Jim Lester as its first-ever chief operating officer to help the company grow. Lester previously led Fiserv Inc.’s electronic billing and payments division’s startup management, strategy, and marketing.

A rising number of corporations, like PayPal Holdings Inc., are entering the crypto payments sector, demonstrating the market’s potential for expansion. “PayPal’s entry into this market has been fantastic for our business since it has prompted enterprises to consider whether or not they should take crypto payments,” Pair added.

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