Popularity of Altcoins Dampens Bitcoin Payments: Report

Since the 2009 birth of Bitcoin, an estimated 7,000 additional cryptocurrencies have been created and are currently in circulation. Bitcoin is still the most popular cryptocurrency, but there have been other cryptocurrencies that have become more popular in recent years. Altcoins are cryptocurrencies that are not Bitcoin. Altcoins such as Ether, Litecoin and Dash are quickly gaining popularity with investors.

A Bloomberg report shows that Bitcoin payments have fallen to 65 percent from 92 percent in 2020, according to BitPay, a crypto payments processor.

Ether was used for 15 percent of crypto payments on BitPay. Litecoin , Dash and Litecoin made up the rest.

Due to the volatility of the crypto market businesses have started replacing large cryptos like Bitcoin by stablecoins. This is especially important for cross-border payments. Stablecoins are cryptocurrencies which attempt to provide price stability and are backed with government-controlled reserve assets like gold.

Meme-coins such as Dogecoin or Shiba Inu are also gaining popularity with companies such as Tesla, AMC Theatres and adding them to their payment options.

Bloomberg’s report aligns with industry experts’ predictions for Bitcoin’s 2022 journey.

Gadgets 360 was recently told by CoinDCX’s research team that altcoins are gaining ground with retail investors. They may challenge Bitcoin’s position as a safe-haven asset in 2022.

The development also coincides with a Glassnode report which recently revealed that Bitcoin investors are more concerned about holding and accumulating tokens than spending them.

Bitcoin owners are expecting huge returns in the days ahead.

Each Bitcoin crypto token trades at $45,395 (roughly Rs. 33.7 lakh). Bitcoin had reached its highest ever level of $68,000 (roughly Rs. 50.5 lakh) in 2022’s second half.