Cryptocurrency adoption on a UK-based payments app is booming in the first quarter of 2021, but whether that trend continues may depend on the actions of those spreading Bitcoin (BTC) as Elon Musk, STICPAY director James Bay warns.
The mobile payments app reported a 48% increase in crypto deposits in the first quarter of the year, while fiat deposits remained flat. Bitcoin is clearly the currency of choice for most users of STICPAY’s e-wallet, with Bitcoin deposits surpassing Ether (ETH), Tether (USDT) and Litecoin (LTC) deposits by more than 38 times.
The company also reported an 185% increase in the number of users converting fiat to crypto through the wallet’s built-in currency converter, compared to the same time last year. This is accompanied by a 12% reduction in the number of users exchanging cryptos back to fiat.
Customer service director James Bay says more and more cryptocurrencies are being seen as potential stores of value but said Bitcoin still leads.
“Cryptocurrency is increasingly accepted as a reliable store of monetary value. But we have to say that Bitcoin is leading the shift in payment habits and the prospect is challenging fiat currencies,” Bay said.
Bay warns: “The move to crypto is moving at breakneck speed, but whether that trend will continue,” warned Bay, whose comments came as the crypto markets experience through a steep decline after months of rapid growth.
Bay suggests that the continuation of the trend could depend on the actions of public figures like Elon Musk, whose influential tweets have been shown to boost (or lower) the price of any real estate. any coin he mentioned.
“Even today, prominent Bitcoin evangelist Elon Musk announced Tesla would no longer accept the coin due to environmental concerns, all of which comes after the announcement in March that the business would be liquidating. in Bitcoin,” Bay said, referring to Elon Musk’s abrupt reversal. Tesla’s decision to allow Bitcoin as a payment method for its electric vehicles.
Another prominent Bitcoin evangelist, Michael Saylor of MicroStrategy, announced an additional purchase of 271 BTC on May 13, hours after Musk reversed the payment in Bitcoin. The total number of Bitcoins on MicroSTrategy’s balance sheet is 91,850 BTC, which at various prices were purchased early last year.
Meanwhile, more than $1 billion in Bitcoin worth more than $1 billion remains on Tesla’s balance sheet — a fact that has drawn criticism from industry observers who consider Musk willingness to profit from a coin he considers environmentally hazardous is a sign of hypocrisy.
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