Bloomberg published an article stressing that Bitcoin is facing a major commercial adoption issue. They found that just 1.3% of all Bitcoin transactions in 2019 came from merchants.
Increasing Commercial Interest in Bitcoin
In May, WhatsApp enabled the option to send and receive Bitcoin between users. AT&T, one of the biggest network providers in the world, added Bitcoin payments for their customers. Facebook announced its Libra Cryptocurrency and Microsoft even enabled payments in Bitcoin for purchasing games, video content, and apps. There is clear evidence that more companies are seeing the long term benefits of Bitcoin. Yet, it is still worth noting, that there are many more merchants who have not yet added Bitcoin.
Major Blocker faced by Bitcoin
The main issue facing Bitcoin adoption is that it is mainly used as a trading asset today. Transactions on exchanges account for more than 89% of all Bitcoin activity in the world! It is primarily used for trading and has limited real-world utility still. Often Bitcoin owners are very reluctant to spend their coins, as they fear losing out on potential market gains. Merchants are naturally more interested in fiat payments than Bitcoin, to secure a set transfer that enables them to sustain their businesses.
With the high volatility of Bitcoin, especially during a bear market, the risk can be seen as too great for merchants who are unable to find an easy direct conversion provider (payment gateway). Anyone who has been involved in Bitcoin for a long time will say that there are plenty of options on the market, that will enable direct real-time conversion of Bitcoin to fiat (e.g. BitPay). For many merchants, however, this may seem like a much bigger hurdle to research and locate a provider for.
Until a set standard, such as easy Visa payment integration, becomes the norm for Bitcoin, enabling intuitive setup and direct conversion of BTC to fiat, the mass adoption that the market craves, may still be some time away.