Just because the payments through bitcoin have decreased is not a reason enough to claim that bitcoin is falling. It could be that some people are more interested in holding it for long. So, they are not using it for payments.
That could be the case but that can also be a possibility that this is a sign for bitcoin. I mean bitcoin doesn't improve that much in terms of use case for the past years unlike other cryptocurrencies that are actively trying to create more uses for their crypto. Also, bitcoin is premium that it's not really a good idea to spend it because you're more likely to benefit from it when you are hodling it. 
Topic: Bitcoin payments decline as other cryptocurrencies grow (Read 495 times)
Just because the payments through bitcoin have decreased is not a reason enough to claim that bitcoin is falling. It could be that some people are more interested in holding it for long. So, they are not using it for payments.
Right now the market seems to be in fluctuation within specific limits. This is sign for a bullish move, and that makes people keep hold than spending. This can be a reason why there is not much of spending compared to other cryptocurrencies through bitpay.
As said the service cost through bitpay seems high. Though it is a popular service provider, more applications have existed to perform the service on the regional way. Here in my country Krypto a new one have got developed and has slowly growing providing similar service.
I think people are willing to spend their bitcoins more if the bitcoin price is high because this can make the value of the item less or they are only going to pay less btc compare to when the price of btc is down, I hope you know what I mean and I do not think its a valid excuse to increase your service fee just because your popular but it should have lessen because the income that they will get thru fees are still high. They should change this policy now because there are now platforms that offers the same service as them and soon bitpay users are going to migrate on those platforms because the rates are much better. I bet bitpay do not want that to happen As said the service cost through bitpay seems high. Though it is a popular service provider, more applications have existed to perform the service on the regional way. Here in my country Krypto a new one have got developed and has slowly growing providing similar service.
Seriously I wouldn’t blame businesses for not making use of Bitcoin at this time. When you are running a business, you have to be careful and avoid losses, because when there is loss, it will affect your business. And nobody will like their business to go down, because that’s their major source of income. And any business that is making use of Bitcoin is running a risk of losing value, because you can sell a product, and then you lose the money just because of the price dropped.
Imagine that you sold a product of $200, and after you have gotten your money in Bitcoin, and then the price of Bitcoin dropped and you are losing $100 of the $200 that you just got from the sold product, Wouldn’t that be a loss for your business? So for now, most businesses would be considering stable coins than a coin that is volatile.
Imagine that you sold a product of $200, and after you have gotten your money in Bitcoin, and then the price of Bitcoin dropped and you are losing $100 of the $200 that you just got from the sold product, Wouldn’t that be a loss for your business? So for now, most businesses would be considering stable coins than a coin that is volatile.
Right now the market seems to be in fluctuation within specific limits. This is sign for a bullish move, and that makes people keep hold than spending. This can be a reason why there is not much of spending compared to other cryptocurrencies through bitpay.
As said the service cost through bitpay seems high. Though it is a popular service provider, more applications have existed to perform the service on the regional way. Here in my country Krypto a new one have got developed and has slowly growing providing similar service.
As said the service cost through bitpay seems high. Though it is a popular service provider, more applications have existed to perform the service on the regional way. Here in my country Krypto a new one have got developed and has slowly growing providing similar service.
With how bearish the market has been lately, it's probable people are holding more Bitcoin than what they're spending. I think the main reason why Bitcoin transactions are declining on Bitpay it's because of its processing fees. Merchants are considering other options in order to get more bang for their buck. With KYC requirements, you can bet most merchants and customers will be looking elsewhere. What really tells us if Bitcoin's payments are declining, is the network activity. So far, the blockchain is quite active compared to other cryptocurrencies on the market.
Slowly but surely, adoption is growing for Bitcoin's Lightning Network. It shouldn't be long before the whole world adopts Bitcoin for true financial revolution. As long as the main blockchain network remains decentralized, nothing else matters. Just my opinion
as presented by the OP, the decline of payment is via bitpay. so it doesn't include other payment channels. maybe, the reason why bitpay's usage is declining because of their high fees and now, users are finding cheaper alternatives.
also, as said above, a lot are also holding their coins for the hope that this will be good investment that can give them good profits. there are many factors to consider here. but the adoption is growing as well as number of crypto users.
Right now the market seems to be in fluctuation within specific limits. This is sign for a bullish move, and that makes people keep hold than spending. This can be a reason why there is not much of spending compared to other cryptocurrencies through bitpay.also, as said above, a lot are also holding their coins for the hope that this will be good investment that can give them good profits. there are many factors to consider here. but the adoption is growing as well as number of crypto users.
As said the service cost through bitpay seems high. Though it is a popular service provider, more applications have existed to perform the service on the regional way. Here in my country Krypto a new one have got developed and has slowly growing providing similar service.
store or value rather than on spending it on things which you could still done it via using fiat so its up to your choice though because not all would really be having the same mindset
Some would be spending and wont be minding about investment and some would really tend to hold and wouldnt waste off their coins.
as presented by the OP, the decline of payment is via bitpay. so it doesn't include other payment channels. maybe, the reason why bitpay's usage is declining because of their high fees and now, users are finding cheaper alternatives.
also, as said above, a lot are also holding their coins for the hope that this will be good investment that can give them good profits. there are many factors to consider here. but the adoption is growing as well as number of crypto users.
Right now the market seems to be in fluctuation within specific limits. This is sign for a bullish move, and that makes people keep hold than spending. This can be a reason why there is not much of spending compared to other cryptocurrencies through bitpay.also, as said above, a lot are also holding their coins for the hope that this will be good investment that can give them good profits. there are many factors to consider here. but the adoption is growing as well as number of crypto users.
As said the service cost through bitpay seems high. Though it is a popular service provider, more applications have existed to perform the service on the regional way. Here in my country Krypto a new one have got developed and has slowly growing providing similar service.
Apart from the privacy concerns and reduced transaction based on that fact one can also assume that with the ever changing and volatile market, peeps are not making much moment currently or they might be just securing the funds in stable coin to reduce the further losses. In crypto possibilities are huge. For example, different markets like NFT, Defi are emerging at alarming rate and it’s possibility that investors are converting the bitcoin or buying the NFT for future profits. However, any average investor in the crypto space will always have bitcoins in his pockets and will always convert the profits into bitcoin at the end.
Some were taking this time to try new projects while waiting for the continuous recovery of bitcoin. NFT is getting hyped on how someone can earn thru digital creations and thru playing games, there are trying to have it due at this time the market is down knowing Metaverse can improve the market condition soon. Still BTC and top or trusted cryptocurrencies can recover whenever the market experience bear season. 
Hope this will not affect bitcoin adoption if people that are using it for payment is decreasing?
On the other side, I am thinking bitcoin is not just a coin that can be used for payment, it can be used for asset too.
With the huge rally we had in the BTCitcoin market, everyone is holding their coins thinking of a much bigger profit than spending them for transactions. Expect these situations during a bull market and it would be interesting to see the same data next year when there is a reversal of trend.On the other side, I am thinking bitcoin is not just a coin that can be used for payment, it can be used for asset too.
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People that are using bitcoin now are using exchanges and centralized wallets that charge high fee in a way it will also discourage some people to move the coin to a private key wallet.
That is the mistake majority of the users are doing, it is clear that it is not safe to hold your coins in third party wallets or exchanges and even with N number of hacks, no one would change. Always use your stand alone wallet to store the coins and it is not hard to use them.People that are using bitcoin now are using exchanges and centralized wallets that charge high fee in a way it will also discourage some people to move the coin to a private key wallet.
as presented by the OP, the decline of payment is via bitpay. so it doesn't include other payment channels. maybe, the reason why bitpay's usage is declining because of their high fees and now, users are finding cheaper alternatives.
also, as said above, a lot are also holding their coins for the hope that this will be good investment that can give them good profits. there are many factors to consider here. but the adoption is growing as well as number of crypto users.
Hope this will not affect bitcoin adoption if people that are using it for payment is decreasing?
On the other side, I am thinking bitcoin is not just a coin that can be used for payment, it can be used for asset too.
With the huge rally we had in the BTCitcoin market, everyone is holding their coins thinking of a much bigger profit than spending them for transactions. Expect these situations during a bull market and it would be interesting to see the same data next year when there is a reversal of trend.On the other side, I am thinking bitcoin is not just a coin that can be used for payment, it can be used for asset too.
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People that are using bitcoin now are using exchanges and centralized wallets that charge high fee in a way it will also discourage some people to move the coin to a private key wallet.
That is the mistake majority of the users are doing, it is clear that it is not safe to hold your coins in third party wallets or exchanges and even with N number of hacks, no one would change. Always use your stand alone wallet to store the coins and it is not hard to use them. People that are using bitcoin now are using exchanges and centralized wallets that charge high fee in a way it will also discourage some people to move the coin to a private key wallet.
Apart from the privacy concerns and reduced transaction based on that fact one can also assume that with the ever changing and volatile market, peeps are not making much moment currently or they might be just securing the funds in stable coin to reduce the further losses. In crypto possibilities are huge. For example, different markets like NFT, Defi are emerging at alarming rate and it’s possibility that investors are converting the bitcoin or buying the NFT for future profits. However, any average investor in the crypto space will always have bitcoins in his pockets and will always convert the profits into bitcoin at the end.
I think the answer is NO because bitpay is not the only bitcoin payment gateway and the data collection is based on bitpay users alone, so the total statistics of 65% does not reflect the total number of Bitcoin users that pay with bitcoin.
If you want to know the level of bitcoin adoption you should check the activities of wallet users active ones that way you know the percentage of Bitcoin adoption.
Well, in this case it is like a sampling and when you’re doing sampling you don’t use all the materials, rather you make use of a selected few or even one of the materials as a sample. So, we don’t have to get data from every platform, because BitPay is already serving as that sample. And even without being told, you already what would likely happen in a situation like this.If you want to know the level of bitcoin adoption you should check the activities of wallet users active ones that way you know the percentage of Bitcoin adoption.
When the market is going down people would try to avoid losing their money, and therefore they would leave the market, until maybe things stabilizes or the market starts going up again. If there is the possibility of getting data from other platforms, it would also reflect the same thing.
Is the percentage showing the number of transactions in Bitcoin vs Ethereum and other coins or is it the volume? Because I think the volume is not less important, and I wonder what's the percentage of Bitcoin and Ethereum by volume on BitPay in 2021 compared to 2020. Also, a decline in payments doesn't mean that Bitcoin's losing popularity or anything. Even the article linked by the op suggests that it means people prefer hodling. So people largely saw Bitcoin as an investment and didn't care to use it for payments as much (if the transaction volume confirms it, and I'm not sure it does). I am surprised that Ethereum's popular for payments, though, because it often had way higher transaction fees than Bitcoin in 2021. And the arguments that BitPay's being avoided is also valid for questioning the data and conclusions.
According to the news, it is said that bitcoin payment of users that use BitPay has declined from 92% in 2020 to 65% in 2021.
https://wealthybot.io/bitcoin-payments-decline-as-other-cryptocurrencies-grow/
That could be a factor if people are now securing the value of their money and that urge them to use stablecoins instead of Bitcoin. With that 1 year observation, I think it was reliable and that was too convincing that people are just considering Bitcoin as an investment, not a currency anymore. And with the existing downtrend of the price, the more they'll hold and not to sell nor it spends them. Likely, if the situation goes like this, we can't hide the possibility that instead of seeing Bitcoin become a legal tender it will fail. https://wealthybot.io/bitcoin-payments-decline-as-other-cryptocurrencies-grow/
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According to BitPay, Bitcoin’s (BTC) usage at businesses that use its payment system fell last year to about 65% of processed transactions, down from 92% in 2020. Along with this change, Ether (ETH) represented 15% of all transactions, whereas other currencies such as Litecoin (LTC) and Dash have increased their portion.
Businesses have started using stablecoins more frequently for cross-border payments since November when crypto values had been depreciating.
Businesses have started using stablecoins more frequently for cross-border payments since November when crypto values had been depreciating.
I mentioned it someplace else, but it should be mentioned that BitPay is going after a different type of business now other then small merchants direct.
They seem to want to be the 'crypto processor of choice' by getting into partnerships with existing payment services.
Here: https://bitcointalksearch.org/topic/2021-09-28-bitpay-and-verifone-partner-5362990
and here: https://www.businesswire.com/news/home/20211012005376/en/BitPay-Partners-with-Wix-Enabling-Wix-Merchants-to-Accept-Crypto-Payments
So looking at the numbers dropping from BitPay and thinking that it means something MAY be a mistake. It could just be they are changing who they are targeting and it takes a while for the other business to catch up.
-Dave
They seem to want to be the 'crypto processor of choice' by getting into partnerships with existing payment services.
Here: https://bitcointalksearch.org/topic/2021-09-28-bitpay-and-verifone-partner-5362990
and here: https://www.businesswire.com/news/home/20211012005376/en/BitPay-Partners-with-Wix-Enabling-Wix-Merchants-to-Accept-Crypto-Payments
So looking at the numbers dropping from BitPay and thinking that it means something MAY be a mistake. It could just be they are changing who they are targeting and it takes a while for the other business to catch up.
-Dave
I think the answer is NO because bitpay is not the only bitcoin payment gateway and the data collection is based on bitpay users alone, so the total statistics of 65% does not reflect the total number of Bitcoin users that pay with bitcoin.
If you want to know the level of bitcoin adoption you should check the activities of wallet users active ones that way you know the percentage of Bitcoin adoption.
^ If that is true which is also I have doubt that most people now are holding their BTC assets than expending it. If you want to know the level of bitcoin adoption you should check the activities of wallet users active ones that way you know the percentage of Bitcoin adoption.
There is no way to have a perfect stat like this but if this is only intended for the Bitpay user only possible that they can able to trace the transactions.
In this case, I most likely believe that BTC was now storing the value not spending for the daily needs or so whatever it is. Holding is the best decision for the long term because the price becomes higher and higher, so possible BTC price will not immediately recover from the correction.
As long as people keep using those exchanges, it's in the exchanges best interest to keep fees high and discourage users from withdrawing real Bitcoins.
and he hits the nail on the head. (translation. 'he is spot on')
though i doubt he realises what he says in regards to other offchain services that want people to keep their value locked into offchain systems. or sway them to swap to altcoins to exit the offchain systems. hopefully LoyceV will expand his thought and see where it also applies to other offchain systems.
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that said, bitpay used to be the number one payment service for merchant tools years ago. but they purposefully added altcoin offerings which automatically bring the number below 100% and then by having steep fee's compared to other services. bitpay has lost alot of btc customerbase.
its not to say that btc has declined. its to say that merchants just dont use bitpay for their merchant tools.
now with many exchanges having merchant tools and many other services, ALOT more bitcoiners use those. leaving bitpay with the laggers.
bitpay had over 10,000 merchants using it in 2013.. by the look of the transaction numbers i dont see they still have 10,000 merchants. because if they did it would be only ~4 transactions a month per merchant.
bitcoin merchants now use other commercial services to accept bitcoin
I think the answer is NO because bitpay is not the only bitcoin payment gateway and the data collection is based on bitpay users alone, so the total statistics of 65% does not reflect the total number of Bitcoin users that pay with bitcoin.
If you want to know the level of bitcoin adoption you should check the activities of wallet users active ones that way you know the percentage of Bitcoin adoption.
If you want to know the level of bitcoin adoption you should check the activities of wallet users active ones that way you know the percentage of Bitcoin adoption.
if exchanges are charging 0.0005 bitcoin to a high amount over 0.0012 bitcoin which is $20 and above. They are misleading people to pay high fee when it is not.
I guess they only use a small portion of the fee as a network fee and keeps the rest as their own fee. But yeah, they should mention that whenever a user withdraws their fund. Separate network fee from their own fee so users can better understand how the fees work.Quote
You can get your transaction confirmed within the next block even if you pay less than $1.
For the record: $0.10 is more than enough too for a transaction with 1 input. 
Or maybe it is BitPay that failed to attract BTC users to use their payment gateway due to poor service or some other reason? People still use bitcoin. The fee isn't very high now. You can get your transaction confirmed within the next block even if you pay less than $1.
if exchanges are charging 0.0005 bitcoin to a high amount over 0.0012 bitcoin which is $20 and above. They are misleading people to pay high fee when it is not.
People that are using bitcoin now are using exchanges and centralized wallets that charge high fee in a way it will also discourage some people to move the coin to a private key wallet.
I guess they only use a small portion of the fee as a network fee and keeps the rest as their own fee. But yeah, they should mention that whenever a user withdraws their fund. Separate network fee from their own fee so users can better understand how the fees work. And no one should be using an exchange or a centralized wallet to store their coins and make transactions. If they think a little, they will know that in the long run moving their funds to their own noncustodial wallet will save them more in fees. People that are using bitcoin now are using exchanges and centralized wallets that charge high fee in a way it will also discourage some people to move the coin to a private key wallet.
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