Three pictures tell you why Bitcoin's monetary attributes are getting stronger

When Bitcoin first entered the mainstream a few years ago, many people thought it could replace cash and credit cards as a new payment method. However, due to the volatility of the currency price and the limited transaction capacity of Bitcoin, this idea had to be put on hold. Bitcoin has become a target for speculators. But the latest data shows that Bitcoin payments are promising, as the volatility of this digital currency has decreased and the price has risen rapidly.

Payment processor BitPay, which helps merchants accept Bitcoin payments, broke early industry investment records because investors are very optimistic about Bitcoin payments. Although the company is not as well-known as other Bitcoin trading or storage platforms, the validity of the data provided by BitPay is self-evident:

The rise in Bitcoin payments is best measured in U.S. dollars, as the price of the currency has been rising. Currently, the price of Bitcoin is hovering around $1,250 (as of press time).

The higher the value of Bitcoin, the more people will use it to shop. James Walpole, marketing manager at BitPay, said:

As the price of the coin rises, we witness a "wealth effect" pattern.

In other words, if you hold Bitcoin and its value increases, you can get more US dollars by selling some of your Bitcoins than you would have otherwise.

So what are people using Bitcoin for? Walpole said that in BitPay, a third of transactions are used for prepaid services such as Neteller and Skrill and BitPay's prepaid Visa card. 21% of transactions occur on gaming platforms such as Steam. 15% of transactions are used to pay for digital services such as domain name registrations.

The "wealth effect" of Bitcoin is also evident in the purchasing patterns of CheapAir users. CheapAir is an online platform that sells airline tickets, provides hotel reservations and car rentals. It was one of the early merchants to accept Bitcoin payments, starting the business as early as November 2013. CheapAir founder Jeff Klee said his Bitcoin users have an advantage.

Using Bitcoin can get you more deals on business or first class tickets. Indeed, Bitcoin users consistently spend more on average than non-Bitcoin users.

CheapAir has seen a surge in bitcoin payments over the past year and a half, a period during which the price of the currency has risen nearly sixfold. Klee did not disclose the total amount of payments, but he said that since CheapAir began accepting bitcoin payments, it has processed more than $15 million in bitcoin payments as of this month.

Klee said that most of CheapAir's bitcoin users are from countries outside the United States, which also explains why they are enthusiastic about this cryptocurrency. Credit cards issued in certain countries are usually automatically associated with merchants or payment processors, so there is a higher risk of fraud and often encounter problems with transactions not being completed. Klee said:

Buyers who shop through traditional channels are at a disadvantage.

Consumers can avoid similar situations by using Bitcoin.

However, if the volume of Bitcoin payments increases only when the price of the currency rises, then it means that Bitcoin holders are spending their new wealth, and those who later buy Bitcoin at a higher price have no reason to spend their coins.

BitPay’s Walpole said transaction volumes also rose when the price of the currency was relatively low, and he attributed the payment volume to bitcoin’s improving infrastructure.

Bitcoin is a store of value, a safe haven currency, and an economic payment method that does not require a credit card or banking services.

If Walpole is right, bitcoin holders will be more willing to spend their digital cash.