The falling cryptocurrency market has had an impact on how people pay with cryptocurrencies, but Bitcoin (BTC) remains a major payment instrument despite massive volatility, according to data from BitPay.
The share of Bitcoin payments in total BitPay transactions is shrinking amid the ongoing crypto winter, but it remains the most popular cryptocurrency for payments on the platform.
Merrick Theobald, Vice President of Marketing at BitPay, told Cointelegraph that Bitcoin-based payments sales volumes on BitPay reached 87% last year and fell to 52% in the first quarter of 2022 amid a bear market. Unlike the number of transactions, Bitcoin sales volumes on BitPay are related to the total value of crypto payments processed in Bitcoin.
Theobald noted that BitPay noticed the effect of sales volumes mainly among volatile coin purchases as stablecoin sales continued to occur regardless of cryptocurrency price fluctuations.
Theobald emphasized that overall BitPay transactions remained stable despite the market downturn, with monthly transactions rising from around 58,000 in 2021 to 67,000 in 2022.
In line with the volume of sales, the amount of bitcoin payment transactions has also decreased significantly this year. According to data from BitPay, the share of BTC transactions fell from 57% in March to 48% in July.
On the other hand, BitPay users have been increasingly paying with other cryptocurrencies such as Litecoin (LTC), with LTC transactions rising from 14% in March to 22% in July.
Despite the massive drop in Bitcoin payments amid a bear market, BTC remains the most used cryptocurrency for transactions on BitPay and accounts for more than 50% of all sales on the platform. According to Theobald, this is further evidence that the use case of the Bitcoin payment tool – the one originally described by BTC creator Satoshi Nakamoto – is still relevant. The CEO said:
“People are still using BTC more on BitPay than other cryptocurrencies because it is the oldest and most popular cryptocurrency, has the largest market capitalization, and has proven over the years to be a great digital payment tool.”
Theobald also suggested that some users might prefer paying with Bitcoin in the midst of a bear market because it might be more expensive to sell BTC on an exchange and use it later to buy online items. “BitPay offers customers a straightforward and less expensive way to use their bitcoins to purchase everyday items,” he added.
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BitPay is one of the largest cryptocurrency payment companies in the world, allowing individuals and businesses to purchase products and services in cryptocurrency or accept cryptocurrency as payment. BitPay provides crypto payment services to a large number of companies in the US, including Newegg, Verifone, and Shop.com. BitPay is also gaining popularity for administrative payments and donation drives in the United States.
The news comes amid JPMorgan reports of a decline in demand for cryptocurrencies as a payment method over the past six months. Takis Georgakopoulos, head of global payments at JPMorgan, said that the bank handles significantly fewer crypto payments, and JPMorgan reportedly does not see “very little” demand for such payments at the moment.