Bitcoin payments decline as other cryptocurrencies grow

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According to a Bloomberg report, BitPay Inc., one of the world’s best-known crypto-payment processors, has seen a shift in the type of digital assets used for purchases over the past year.

According to BitPay, the use of Bitcoin (BTC) in businesses that use its payment system fell last year to around 65% of transactions processed, down from 92% in 2020. Along with this change, Ether (ETH) accounted for 15% of all transactions, while other currencies such as Litecoin (LTC) and Dash have increased their share.

Firms have started using stablecoins more frequently for cross-border payments since November, when crypto values ​​were depreciating. Consumers have also started using stablecoins because their value is constant, reducing risk in the notoriously volatile cryptocurrency market, according to the report.

The growing popularity of stablecoins has partly contributed to the use of alternative coins for payments. Dogecoin (DOGE), for example, rose to fame last year thanks to its proponents, such as Tesla CEO Elon Musk, who announced on Friday that DOGE could be used to buy Tesla-related goods.

Related: Retailers Drive Adoption of Crypto Payments: Survey

The trend suggests individuals are holding bitcoins rather than spending them. Bitcoin prices are up 60% in 2021, regardless of Q4 volatility. According to BitPay, the majority of crypto transactions last year were for luxury items such as jewelry, watches, and automobiles.

Whales have never held more bitcoins pic.twitter.com/a9jxAV3Mxp

— zerohedge (@zerohedge) January 16, 2022

Transaction volumes for premium items increased 31% in 2021 from 9% in 2020, according to Stephen Pair, CEO of BitPay. Payment volume increased by 57% across all areas in 2021.

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