Companies are rapidly using digital tokens other than Bitcoin for purchases, according to Bitpay Inc., one of the world’s largest crypto payment processors.
According to Bloomberg, the use of Bitcoin among Bitpay retailers fell from 92 percent in 2020 to 65 percent in 2021.On the other hand, purchases of coins like Ether were at 15 per cent, stablecoins at 13 per cent, and Dogecoin, Shiba Inu, and Litecoin accounted for 3 per cent.
Businesses have begun to use stablecoins more for cross-border payments since November of last year, as crypto values have fallen. Consumers are also gravitating towards stablecoins since their value remains stable, reducing risk.
The cause of the downfall
The reason for such a decline indicates that individuals prefer to keep Bitcoin rather than spend it. Apart from the fourth quarter, Bitcoin prices increased by 60 per cent last year. According to Bitpay, the majority of cryptocurrency transactions in the previous year were for luxury products such as jewellery, watches, vehicles, yachts, and so on.
