PayPal CEO Turns On The Bitcoin Bunsen Burner ‘Not Many Retailers Are Accepting Cryptocurrencies’
PayPal CEO: We’re Not Seeing Many Retailers Accept Cryptocurrencies
The CEO of PayPal, Dan Schulman, has recently decided to express his disbelief in cryptos to the media. According to him, Bitcoin is still far from mass merchant adoption while PayPal continues to rule in this sector.
Schulman has decided to talk about Bitcoin during the 2019 World Economic Forum, which is currently being held in Davos, Switzerland. He affirmed that retailers are not accepting any cryptos at all and that the underlying technology might be “interesting” but that this is far from enough.
Volatility Issues Make Bitcoin Not Be A Currency
According to Schulman, wild price swings are the main reason that merchants are simply not very interested in Bitcoin at all. According to him, a currency needs to be stable. The transactions are low and the price swings are fast, so the money you pay is often not the same as the money you receive.
Retailers, he explains, have very narrow profit margins, because of this, the prices bouncing up and down by over 15% mean that they can easily lose all of their profits, which turns using Bitcoin into a simply very bad idea for them. They can actually lose money with sales using BTC.
Unfortunately, Schulman is not alone in his depressing but sober analysis. The director of equity research at the Buckingham Research Group, Chris Brendler, agrees with him. He affirms that cryptos are not food for either consumers nor merchants at all because they are a poor way of transferring value among people. He described the process as very unfriendly for the consumers and merchants alike.
Ex-PayPal CEO Is Also A Bitcoin Hater
Obviously, no CEO of PayPal is very friendly to Bitcoin, as it is a direct competitor for the company. The last CEO’s stance is also very negative. Bill Harris has recently trashed Bitcoin by affirming that it is completely worthless and calling its evangelists “cult-like zombies”.
His main problem with Bitcoin is that people that it is instant, free, scalable, globally accepted, secure and efficient while it is none of these things, in his opinion. This has led him to believe that the prices will eventually crash to zero.
Curiously, one of the founders of PayPal, Peter Thiel, is a huge Bitcoin bull. He believes in the potential of the token and thinks that it works very well as a store of value.
The truth here is that Bitcoin clearly has a lot to improve on, but it is certainly a coin that is full of potential to become something really revolutionary in the future.