Back in October – in what seems like a lifetime in the cryptocurrency world – PYMNTS and BitPay‘s “Cryptocurrency shoppingThe study found that “technology-dependent” consumers, who account for nearly 15% of all consumers and 22% of former or current cryptocurrency holders, are the most likely to engage with it.
But now, as FTX Dragging itself into bankruptcy court, other cryptocurrency exchanges trembling and bitcoin hovering at $16,000, traders must ask an existential question: Do I accept cryptocurrency or not?
It would make sense that, given the volatility of bitcoin and its brethren, consumers might refrain from using their holdings to purchase goods and services. The purchasing power of those digital currencies fluctuates from day to day, hour to hour. It may also make sense for merchants to worry that they may not see their money in consumers’ hands an act Transactions (FTX ripple effects include concerns about governance and frozen funds).
But the CEO of BitPay Stephen Burge And the Nick Dosamajor dealer in Vegas auto show, which processes crypto transactions through the BitPay platform, told PYMNTS that the FTX failure, in fact, didn’t change things much at all. Viewed through the broader lens of history, the FTX shake-up is nothing new.
“We’ve been through a number of events like this in the past decade,” said Husband.
Bitcoin payment service provider BitPay has made a long-standing decision to reduce reliance on offshore companies.
“We hold our own cryptocurrency, we do not depend on third parties for this,” said Baer.
when exchanges We are In use, Zouj said his company takes the cryptocurrency to exchanges, sells it, and immediately withdraws the proceeds.
Mixed consumer sentiment – for now
Yes, there is some consumer uncertainty in the market, Dosa said, and people may be waiting a little while to see how things turn out. But for Vegas Auto Gallery, which sells luxury and exotic cars and has offered bitcoin as a payment option since 2015, “people with a lot of cryptocurrency still go ahead” and deal.
The pair echoed that note, noting that different people came to cryptocurrency at different times — and there are still many people who invested years ago sitting on healthy gains — or perhaps even converted their bitcoins into stablecoins (BitPay also supports USDC). They use coins to make purchases.
With the holiday season approaching, there may be some divergence among cryptocurrency consumers.
“You’ll see some people who are in the ‘spend it or lose it’ mentality,” Husband said.
But there are other consumers who like to spend when the bitcoin price is high, and when it’s low it’s a good time to save and build wealth.
Upside for dealers
Despite the headwinds at present, Zug and Dossa said, traders should be attracted to the fact that cryptocurrency holders are younger, tech-savvy, and tend to be relatively wealthier than other demographics. The pair noted that even in these somewhat restricted times, the average spending across BitPay’s business customers is tracking twice as much as the average customer using a credit card.
There is another benefit to traders.
“If they find a place where they can spend cryptocurrency, they will tell their friends,” Dosa said.
Looking ahead over the next few months and in the long term, the chaos sown by FTX will have the healthy effect of driving bad actors out of the system, providing a wake-up call for investors and regulators. The pair expects that significant leverage reduction will begin, and “we will find a foundation and a floor in the markets. And then we will start building again.”
As he told PYMNTS, in the midst of the rebuild, “many merchants should consider accepting cryptocurrencies. They will be pleasantly surprised at the types of buyers they attract.”
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