The adoption of cryptocurrencies in a UK-based payment app is booming in the first quarter of 2021, but whether that trend continues may depend on the actions of Bitcoin (BTC) evangelists like Elon Musk, warns STICPAY director James Bay.
The mobile payments app saw crypto deposits grow 48% in the first quarter of the year, while fiat deposits were flat. Bitcoin is apparently the currency of choice for most of STICPAY’s e-wallet users. Bitcoin deposits outperform Ether (ETH), Tether (USDT) and Litecoin (LTC) deposits 38 times.
The company also reported a 185% increase in the number of users converting fiat to crypto using the wallet’s built-in currency converter, up 185% from the same period last year. This was accompanied by a 12% decrease in the number of users who swapped crypto back to fiat.
Customer service director James Bay said that while more cryptocurrencies are gaining traction as potential stores of value, bitcoin remains at the top.
“Cryptocurrencies are increasingly being accepted as a trustworthy monetary value. But we have to say that Bitcoin is leading the change in payment habits and prospects that are challenging fiat currencies, ”Bay said.
“The move to cryptocurrencies is rapid, but whether that trend will continue remains to be seen,” warned Bay, whose comments come as the cryptocurrency market plunges sharply after months of rapid growth.
Bay believes that the trend’s continuation may depend on the actions of public figures like Elon Musk, whose influential tweets have shown boosting (or lowering) the prices of the coins he mentions.
“As recently as today, the high-profile Bitcoin evangelist Elon Musk announced that Tesla would no longer accept the currency, citing environmental concerns. All of this came after the company announced in March that it would accept payments in Bitcoin,” Bay said Elon Musk’s sudden reversal Tesla’s decision to allow Bitcoin as a payment method for its electric vehicles.
Another high profile Bitcoin evangelist, MicroStrategy’s Michael Saylor, announced the purchase of another 271 BTC on May 13, hours after Musk reversed Bitcoin payments. The total amount of Bitcoin on MicroSTrategy’s balance sheet is 91,850 BTC, with different amounts purchased at different prices as of last year.
Remaining on Tesla’s balance sheet is over $ 1 billion worth of bitcoin – a fact criticized by industry observers who see Musk’s willingness to profit from a coin it deems environmentally hazardous as a sign of hypocrisy.