The adoption of cryptocurrency in the UK payments app is skyrocketing in the first quarter of 2021, but the continuation of this trend may depend on the actions of Bitcoin (BTC) evangelists like Elon Musk, as STICPAY director James Bay warned.
The mobile payment app reported a 48% increase in cryptocurrency deposits in the first quarter of the year, while paper deposits remained unchanged. Bitcoin appears to be the currency of choice for most STICPAY e-wallet users, as Bitcoin deposits hide Ether (ETH), Tether (USDT) and Litecoin (LTC) deposits 38 times.
The company also reported an 185% increase in the number of users converting paper money into cryptocurrency using the currency converter built into the wallet, compared to the same period last year. This was accompanied by a 12% decrease in the number of users converting cryptocurrencies to fiat currency.
Customer Service Manager James Bay said many cryptocurrencies are potential stores of value, but said Bitcoin was still in the lead.
“Cryptocurrencies are increasingly being seen as a reliable store of value. But we have to say that Bitcoin is driving the shifting payment habits and expectations that challenge fiat currencies,” says Baye.
Commenting on the sharp decline in the cryptocurrency market after months of rapid growth, Bay warned: “The transition to cryptocurrencies is happening at a tremendous pace, but it remains to be seen whether this trend will continue.”
Bay believes that the continuation of this trend may depend on the actions of public figures like Elon Musk, whose influencer tweets raise (or lower) the price of the coin he cites.
Bay said, citing Elon Musk’s sudden rejection of Tesla’s decision to allow Bitcoin as a payment method for its electric cars.
Michael Saylor of MicroStrategy announced the purchase of another 271 BTC on May 13, hours after Musk canceled Bitcoin payments. The total Bitcoin amount in MicroSTrategy’s balance is 91,850 BTC, with various amounts purchased at different prices since last year.
Meanwhile, Tesla has more than $ 1 billion in Bitcoin remaining on its balance sheet, a fact criticized by industry watchers who see Musk’s willingness to make money from what he sees as a threat to the environment is a sign of hypocrisy.