Topic: Nobody is using crypto's to pay anymore - page 2. (Read 378 times)

When you have buyers and sellers it creates an ecosystem hence you have related solutions because there is a market. That's where we see somethings news (for merchants for example)
If people keep to hold or trade then the crypto ecosystem won't be developed, the only things we will see developed are the regulations and the trading market. And you're right about the run up to $20,000 I didn't even think about that.

The majority of people that can have access to common goods and services through fiat are going to continue using fiat for obvious reasons that if the people doing these studies thought about it would realize.

Fiat is known to only go down in value long term. People get paid in fiat. These 2 premises already make it obvious: Spend the fiat on common things and use Bitcoin as a store of value and to buy things that aren't easily purchased with fiat, to move wealth across borders in an easy way etc etc.

Until physical cash is removed, economic activity on Bitcoin will be rather low. And when that happens, everyone using cash will start using Bitcoin as an alternative, you will see more jobs being offered in exchange of Bitcoin etc, that is how an economy starts, out of necessity, and the average Joe couldn't care less to pay with fiat or Bitcoin for now. But when all these people doing jobs under the table out of necessity (because if they paid 100% of taxes they would basically not be able to sustain their basic necessities) are forced to declare everything, they will obviously look for alternatives and Bitcoin is it.

Well I think I know, it made things simpler for the processing of the payment.    I'm not sure its a massive discouragement compared to the scenario last year of such high fees, I really didnt want to spend 30 dollars just to move some BTC.  I thought that was so bad and now really BTC improved overall even while the price is lower.

I'm pretty sure Bitpay just return the payment back if its not within their demands, its not a massive deal.  Even years ago, 2014 say I can remember payments being returned if outside the payment time window

I'd rather nobody held BTC as if its a investment, really it should be called a betting slip because its relying on the price change.  Investment implies a yield or business interest which is not at all the case, POS coins maybe do this as the wallet holders get the transaction fees but obviously not with POW.

If everyone just spends their BTC its fine by me, its the cirulation which raises monetary velocity and is the magic which helps raise overall BTC worth as far as I can tell.  The more its used the better for all of us.
PEople who fear selling BTC because its price fell should swap some over to gold which also fell this year.  Gold historically has a link to the dollar and is very likely to appreciate under the unwinding of 20 trillion US treasury debt and QE programs.
  The Dollar isnt getting stronger under this regime transition, its come due to pay its bills and will depreciate which both helps BTC in theory and also gold like I say that was a fixed link to dollar previously so is a reasonable hedge to those who 'over-invested' on this wave.     No reason to doubt BTC can be used for transactions, it just needs to be flexible to handle the smallest of all

I used bitcoin to pay cloud services and I regret it, it was the most expensive cloud I ever paid.

People are not using it to pay anymore, because bitcoin became the best store of value in the market.

Best to hold it and use it to buy only big things, like a house, for example.

But there will come a time when we will use bitcoin to buy smaller things as well. This will happen when it reaches 20% global adoption, as a store of value.

Some users might see a paradox here, since if people dont spend it, there will be no adoption, but to use it as a store of value is considered adoption as well.

It is a bit like "the chicken and egg" scenario.
If nobody is spending bitcoin merchants as less likely to accept it.
Its a bit frustrating for those of us who earn crypto and want to spend it on goods.

The run up to $20,000 didnt help in this regard, a lot of people are indeed realising
a loss in their "investment" and are not going to spend it now if they havent already
liquidated back to FIAT

There is only one thing i can use bitcoin to buy some goods.
And its Weed! So Silkroad was the biggest place for bitcoin shopping.
After silkroad nobody try it.

Yes people feel that it would not make sense to spend bitcoins for anything which could be easily done with the existing fiat currency.They try to hold bitcoins and aim to build a bright future.But its very unfortunate that bitcoin as well as cryptos are created at first to provide a platform for people to send money via P2P transactions independently.Now everything has turned upside down and it could not be changed.

But, but, but... nobody is using crypto because people consider it an "investment", so they just HODL or trade. They are not interested to use it with merchants no, they are not interested in decentralization or privacy no,  they just want to make a profit and receive it in their fiat account. Sure not everyone behaves like this, but let's be honest, the majority does. Why do you want to see more merchants accepting crypto if nobody is using, would you?

https://bitcointalksearch.org/topic/m.42963723

Talk for themselves.
I get paid on crypto all the time, means people are paying me to do my job in crypto for two years now. I doubt that could ever change and I doubt it will ever change.

Maybe "less" people are paying with crypto but that doesn't really mean "nobody" does it, there are still a lot of people in the world that uses crypto for many purposes and we just lost a lot of our dollar value on this bear market that people are holding their crypto currencies until they go back before they use it because if they use it it will not worth a lot and they will have "realized loss" and instead they keep it until it goes up so they currently have "unrealized loss".

Very informative posts, thanks to both of you. 

I've spent bitcoin dozens of times, but the number of merchants I used it at is only like a handful.  I think Bitpay was the payment processor for all of them, and it does baffle me that they'd throw a wrench in the works like that.

However, it doesn't surprise me at all that bitcoin commerce is dropping.  I thought this from day one:  Why would anyone go out of their way to buy bitcoin just so they could spend it on something they could probably buy just as easily (or more easily) with fiat?  When I spent bitcoin, it was usually proceeds from a signature campaign, but I don't think most bitcoin holders get paid in bitcoin--they buy it as an investment, and to them it makes zero sense to spend it on goods & services.

Also, even though it looks bleak right now, things could change.  And I'd also add that bitcoin is still very much worth owning, even if it doesn't get spent.  A lot of people have made money with it, and it is still a great way to transfer money outside the view of the prying eyes of governments and banks.

people have been complaining about it ever since they mandated BIP70 so there are posts on their blogs about it which you can read https://blog.bitpay.com/bitpay-and-payment-protocol/ it may not make complete sense though. and i have heard once before that someone said it is done in order to make it near impossible for those using TOR to be able to use Bitpay! don't know how true this is though!

the article is based on Chainanalysis not the stat reports by the payment processors or merchants themselves so there is a good chance it is off the mark. it is also the fact that it is comparing bitcoin now (at the bottom) with bitcoin before (on the rise). people tend to spend their bitcoins when they have risen not when it is going to rise. it is the same as selling, you don't want to sell at the bottom, you sell on top.

Bitpay was (is?) the largest payment processor for Bitcoin. They are seriously hurting Bitcoins usage as a means of payment though. They started mandating that BIP70 is used for payments. This put a bad taste in many peoples mouth and caused many users to stop using Bitpay altogether. I'm unsure why they mandated BIP70 for payments, but it just overcomplicated things. I am certain that this has to do with the drop in commerce, and is what skewed the results of this "study". Maybe it's also in part to the fact that Bitcoin has been in a slump since 2017. A lot of people are likely hodling because of the general perception that we will be entering another bull market shortly, and buying something would result in a net loss in the short term.

Bitpay is a way of converting crypto into dollars before then passing it onto the vendor.  In theory that vendor is accepting the dollars and its Bitpay who handles the crypto itself, not exactly a crypto transaction.  Hopefully they are also monitoring other methods of exchanging value not just ones that register in FIAT because that'd be quite ironic to skip transactions purely done in crypto

According to the latest report by bloomberg https://www.bloomberg.com/news/articles/2018-08-01/bitcoin-s-use-in-commerce-keeps-falling-even-as-volatility-eases