The number of big brands accepting Bitcoin is not going down and not growing: people are now interested in trading cryptocurrency

Bitcoin apps are only used to trade with price speculation and not to initiate payments

When most of Silicon Valley was founded by Bitcoin, the startups initially focused on the Bitcoin payments market. Over time, however, this will change. Currently, many providers do not accept Bitcoins due to the high fees and high volatility.

In such a case, many of the applications that promised a simple interface for Bitcoin-based payments are nothing more than a trading platform or a cryptocurrency investment platform.

Providers moving away from Bitcoins:

One of the main reasons for this is that providers are actually moving away from bitcoins. The transaction fees in bitcoins are enormous. Also, since transaction review time is high, volatility can hurt profits for most providers. This is one of the main reasons why providers like Microsoft are actually moving away from Bitcoin-based payments.

In addition, with the increase in the value of bitcoins, the smaller face value transactions also have a high amount of fees.

Instead of making payments, people are now interested in trading or hodeling bitcoin

Increased trade demand:

One of the main reasons people want to trade cryptocurrencies is because of their high volatility. You are able to make a substantial amount of money in less time. This causes most of the startups to change their applications to provide a trading platform as well. With the help of these trading platforms, more and more companies are actually offering investors the opportunity to invest in and trade in bitcoins.

Speculation-based trading in bitcoins is increasing day by day. This is one of the main reasons Silicon Valley startups are focusing on this market.

As public attention turns to Bitcoin-based trading and the profits it generates, more and more people are choosing to trade rather than hold Bitcoins. This is one of the main reasons why startups only serve this market.

As the growth in Bitcoin payment growth actually declines, startups would also focus more on the trading market. More and more people are realizing that everyday transactions cannot be carried out with the help of bitcoins.

It remains to be seen whether the fees for Bitcoins can be reduced in the future and whether more and more payment processors and providers are actually thinking about accepting Bitcoins in the future or not. Until then, however, the outlook for Bitcoin-based payment applications looks bleak.

Adam Webb is the editor of Smartereum, Blockchain and Currency News, where he creates updates on Blockchain, Ethereum and other alternative cryptocurrencies.