The story of Bitcoin as a unit of exchange has not grown as quickly as many proponents would like. In a recent survey conducted by crypto mining platform GoMining, over 5,700 Bitcoin holders shared their experiences using cryptocurrencies for everyday payments.
The results showed that 55% of respondents rarely or never use cryptocurrencies for day-to-day real-world transactions. Indeed, they claim to believe in the adoption of cryptocurrency and the privacy it provides. Still, they cited five reasons behind their choice.
Infrastructure disadvantages
The number one reason many respondents don’t use their crypto assets for everyday payments is the lack of the right infrastructure to make it possible.
Over 49% of respondents (2,663 people) highlighted that most merchants do not accept cryptocurrencies as a payment method. Mark Zalan, CEO of GoMining, emphasized this point, telling CryptoPotato, “People can’t build new habits if they have to find a place to accept them.”
A further 44.7% (2,400 people) of survey respondents cited high fees as a barrier, and 26.8% (1,440 people) cited long transaction processing times as a challenge. Blockchain networks such as Bitcoin that use proof-of-work (PoW) consensus algorithms often suffer from network speed and transaction fees. As a result, users may end up paying more fees than traditional payment methods.
Stablecoins: A better option?
More than 43% (2,330 people) of respondents cited price fluctuations as a reason for not using cryptocurrencies for daily payments. Indeed, most cryptocurrencies like BTC are known for their non-stop volatility. As a result, many people are flocking to stablecoins for payments. GoMining’s CEO recognized this and emphasized in his comments:
“Confirmations[of transactions]need to be quick, and customers need to know what to expect from receipts and dispute resolution. That’s why stablecoin payments and card-style systems are getting so much attention. They reduce friction for merchants and keep the flow familiar. (…) Rewards can help get you started, but they only stick if the fees are low and can actually be used anywhere.”
Finally, 36.2% (1,942) of respondents cited potential fraud as a reason for not adopting cryptocurrencies for everyday payments.
When asked if he thought cryptocurrencies should be used more for payments, Zaran said no. Rather, he pointed out, trying to enforce it is part of the market disruption.
“Bitcoin can play a payment role, often as a payment or reserve layer that enables faster rails on top of it. But there are many other tokens that are better viewed as network utilities, governance tools, and even risks, rather than as money,” he added.
