BitPay Inc. , one of the world’s most popular cryptocurrency payment processors, has changed the type of digital assets used for purchases over the past year, according to a Bloomberg report.
According to BitPay, the use of Bitcoin (BTC) by companies using their payment system has fallen to about 65% of transactions processed last year, compared to 92% in 2020. Other currencies such as Litecoin (LTC) and Dash have increased of its share.
Companies have become more likely to use stacked coins for cross-border payments since November, when cryptocurrencies weakened. According to the report, consumers have also started using stack coins because their value is fixed, which has reduced risks in the notorious cryptocurrency market.
The growing popularity of partially stackable coins has encouraged the use of alternative coins for payments. Dogecoin (DOGE), for example, rose to prominence last year thanks to followers such as Tesla CEO Elon Musk, who announced on Friday that DOGE could be used to purchase Tesla-related merchandise.
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The trend is that people are holding bitcoin rather than using it. Bitcoin prices are up 60% in 2021, regardless of the volatility of the fourth quarter. According to BitPay, the majority of cryptocurrency transactions last year were for luxury items such as jewelry, watches, and cars.
Transaction volumes for advanced products increased 31% in 2021 from 9% in 2020, according to Stephen Beer, CEO of BitPay. In 2021, the volume of payments increased by 57% in all directions.