The narrative of Bitcoin as a viable payment method is not gaining traction as swiftly as advocates would hope. According to a recent survey conducted by GoMining, over 5,700 Bitcoin holders provided insights into their experiences using crypto for daily transactions.

The findings revealed that 55% of participants rarely or never utilize cryptocurrency for everyday payments. While they express belief in crypto’s potential and the privacy benefits it offers, five main reasons were identified for their hesitance.

Infrastructure Challenges

A significant reason for the lack of crypto usage is the insufficient infrastructure to facilitate such transactions. Over 49% of respondents (likely representing 2,663) mentioned that most merchants do not accept cryptocurrencies. Mark Zalan, CEO of GoMining, highlighted this concern, stating that “people don’t form new habits if they have to search for merchants that accept it.”

Another barrier noted by 44.7% (approximately 2,400) of respondents was the high transaction fees associated with crypto usage, with 26.8% (about 1,440) indicating prolonged transaction times as a challenge. Blockchain networks, like Bitcoin, which operate on proof-of-work consensus, often face issues with speed and costs, leading users to pay more than they would with traditional monetary systems.

The Appeal of Stablecoins

Over 43% of participants (around 2,330) cited price volatility as a reason for not using cryptocurrency for daily expenses. Given the unpredictable nature of most cryptocurrencies, many users have turned to stablecoins for their transactions. Zalan underscored this sentiment in his comments:

“The [transaction] confirmations need to be fast, and the customer needs to know what to expect from receipts or dispute handling. That’s why stablecoin settlement and card systems are gaining traction; they simplify processes for merchants while keeping transactions familiar. [. . .] Incentives may draw users initially, but retention hinges on low fees and wide acceptance.”

Moreover, 36.2% of respondents pointed to potential scams as a deterrent to adopting crypto for everyday use.

Zalan expressed skepticism about pushing for more extensive payment usage of cryptocurrencies, remarking on the resultant market confusion:

“Bitcoin can serve in a payment role, usually as a settlement and reserve layer that allows for quicker transactions above it. However, many other tokens may be better suited as tools for governance, utilities in networks, or as investment risks rather than as currency.”