Bitcoin CTO David Schwartz Explains Why Bitcoin Isn't Used for Day-to-Day Transactions Anymore

Ripple CTO David Schwartz recently joined a conversation sparked by longtime Bitcoin advocate Bruce Fenton about why Bitcoin isn't really used for day-to-day transactions anymore.

Longtime Bitcoin advocate Bruce Fenton has been discussing why the day-to-day use of Bitcoin has nearly disappeared despite its early adoption in the 2010s.

As the CEO of Chainstone Lab, Fenton noted that about 10 years ago, BTC was used for regular purchases, with over 130 restaurants in Portsmouth, NH, accepting the cryptocurrency in 2015. At the Satoshi Roundtable, a major crypto conference, more than 70% of ticket sales were paid in Bitcoin. But now, those numbers are close to zero.

Fenton sees this decline as a failure, stressing that money must be used for transactions, not just held as an investment. “Using Bitcoin for purchases is a great way to grow the network,” he said.

Why Are Fewer People Spending Bitcoin? Ripple CTO Explains

Many suggest Bitcoin’s high fees and slow transaction speeds have made it impractical for payments. Mandrik, a Bitcoin user, suggests people now view it as a long-term asset.

“They don’t want to look back in five years and regret spending $5,000 on a cheeseburger,” he said.

However, Ripple CTO David Schwartz argued that Bitcoin worked for payments when people didn’t consider it real money. He added that Bitcoin was mostly used for payments when the early adopters got it super cheap. Once its value went up, fewer people wanted to spend it.

“Once the supply of early miners who got Bitcoin nearly for free dried up, there was no longer any reason to pay with Bitcoin,” Schwartz said.

Early Bitcoin supporter Jack Mehof echoes Schwartz’s perspective, stating that he once paid for beer, tacos, and coffee with BTC. But eventually, the rising costs and slow speeds made it too much of a hassle.

Schwartz also pointed out that there are many other cryptocurrencies out there with lower transaction costs and faster speeds. But, as he pointed out, “You don’t see much retail payment use of those either. At least not yet.“

There are a lot of cryptos with lower costs and higher speeds. You don't see much retail payment use of those either. At least not yet.

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But those experts say Bitcoin’s decline as a payment method may be more about regulations than technical limitations.

According to Wayne Vaughan, tax laws and banking restrictions have made Bitcoin payments difficult.

“The tax treatment of capital gains is a major barrier. Companies accepting Bitcoin faced significant accounting burdens, and banks have been incredibly hostile,” he said.

Capital gains taxes also make spending Bitcoin too expensive, according to Dave Weisberger. He added that every purchase would effectively cost 24% more.

Sam Jones suggests a tax exemption for small Bitcoin transactions—similar to foreign currency rules—could encourage more spending.

Some also blame the Lightning Network for failing to deliver on its promise of cheap and fast transactions. Meanwhile, others argue Bitcoin’s primary role has shifted to being a store of value, similar to gold.

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Even with regulatory fixes, some experts question whether Bitcoin payments will ever compete with traditional methods.

Financial advisor Anders believes fiat remains the more convenient option. “People aren’t going to use Bitcoin if it creates a worse payment experience,” he said.