How Many People Actually Pay with Bitcoin?
Cryptocurrencies, and Bitcoin in particular, are positioned as a means of making real-world payments. But is this the case in practice? To answer this question, let's look at survey data, payment processor information, and country case studies.
Surveys Show Low Adoption Levels
According to surveys, only about 2% of the US population owns or has used Bitcoin for payments. In the UK, this figure is even lower at 1.5%. Moreover, most cryptocurrency holders do not use them to pay for goods and services, but rather view them as long-term investments.
Payment Processors Indicate Small Share of BTC Payments
Data from payment companies shows that the share of transactions in Bitcoin is relatively small. For example, at BitPay, one of the largest cryptocurrency processors, it accounts for only about 1% of the total payment volume.
Country Case Studies: Venezuela and El Salvador
In some countries facing hyperinflation or economic problems, Bitcoin is indeed used for payments. For example, in Venezuela, about 10% of the population owns cryptocurrency, which they use to purchase goods. In El Salvador, Bitcoin has even been adopted as legal tender.
Thus, the real use of Bitcoin for payments is still extremely limited compared to its popularity and the scale of the cryptocurrency market. Most BTC holders still view it more as an investment asset than a means of payment.