Bitcoin’s role as a payment method is being increasingly outpaced by centralized stablecoins like USDT and USDC. In 2023, stablecoins settled a staggering $10.8 trillion in transactions, far exceeding Bitcoin's $8.4 trillion. This trend highlights how fewer than 2% of Bitcoin transactions now involve commerce, as stablecoins dominate payment use cases.

The appeal of stablecoins lies in their price stability and faster transaction speeds on efficient blockchains like Ethereum and Solana. Unlike Bitcoin's volatility, stablecoins provide a predictable value, making them ideal for everyday payments and cross-border transactions.

However, this reliance on centralized stablecoins raises concerns about censorship and regulatory control. Stablecoins operate within centralized frameworks, potentially undermining Bitcoin's decentralized ethos. While stablecoins offer convenience, they represent a trade-off that challenges the foundational principles of cryptocurrency. Show Less