PayPal president David Marcus thinks people are mistaken thinking Bitcoin is a currency.
Marcus spoke at LeWeb in Paris today saying that until Bitcoin is regulated and more stable, it is not a currency. As it stands, Bitcoin is more of an asset, one that Marcus holds himself. He explained:
People are confused. They think because it’s called cryptocurrency [that] it’s a currency. I don’t think it is a currency. It’s a store of value, a distributed ledger. It’s a great place to put assets, especially in places like Argentina with 40 percent inflation, where $1 today is worth 60 cents in a year, and a government’s currency does not hold value. It’s also a good investment vehicle if you have an appetite for risk. But it won’t be a currency until volatility slows down. Whenever the regulatory framework is clearer, and the volatility comes down, then we’ll consider it.
Because of this, you shouldn’t expect to be seeing PayPal accept Bitcoin any time soon. Marcus explained that you won’t be able to buy things with Bitcoin through PayPal until it becomes a currency and more merchants actually start accepting it.
But while you’re not going to be buying all of your Christmas gifts this year with the decentralized “money” (though I totally challenge anyone to do so), quite a few businesses and institutions are warming up to Bitcoin.
Saturday, January 11, 2014
PayPal President on Bitcoin: ‘I don’t think it is a currency’
From Veture Beat:
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Ha! PayPal will soon be a relic.
ReplyDeleteIndeed. Paypal has a lot to lose from people moving to Bitcoin. People don't need PayPal, or the fees they charge, in order to move their wealth around now. It stands to reason the CEO of a company that is dependent upon the present financial system will denigrate Bitcoin while simultaneously holding it. How many people bad mouth their own investments?
DeleteIf it is a store of value then it must be a currency since the latter causes the former.
ReplyDeleteMore people use Paypal then people who have even heard of shitcoin. Some relic.
ReplyDeleteThat's a really well-reasoned argument, you imbecile.
DeleteSo was your response. At least my comment was in reference to Anon's comment about Paypal being a relic. Anyone that uses ebay uses paypal. Where's your "well-reasoned" argument. Look in the mirror to see a true imbecile. Your comment is worth about as much as shitcoins...nothing.
DeleteYou're too stupid to realize how stupid you are.
DeleteOk, "anonymous." you're too cowardly to use your name. come see me in a year, shit for brains. I'm buying gold. Keep defending your shitcoins. Maybe they'll be as successful as the Edsel. Douchebag!
DeleteThe Bitcoin protocol allows for payments to be sent...no matter how large...for free, as opposed to people paying 2-3% to PayPal or in bank fees.
ReplyDeleteNo wonder he doesn't think Bitcoin is a real currency. Because of Bitcoin PayPal won't exist in 10 years!!! Maybe sooner.
theyenguy says currency has to come from a household or stronghold..
ReplyDeleteBitcoin is not currency as it isn't backed up by anything strong.
It is as the man says "Whenever the regulatory framework is clearer, .... we’ll consider it".
There is nothing strong about Bitcoin, it is getting chewed apart by regulators world wide; and until the regulatory structure relents and Bitcoin becomes strong, then it can't be considered a currency.
And why should we trust the president of PayPal to define the risks and reward of bitcoin? Seriously? Its like a full time propaganda machine on this blog. Bitcoin still stands.
ReplyDeleteI have some respect for Wenzel. I met him at the San Jose Bitcoin conference. He comes by his skepticism after doing dilligence and he has serious Libertarian chops.
ReplyDeleteThat said, I think he is off base regards his notions of Bitcoin. The divinations of Krugman, or Paypal, or central bankers as to whether it qualifies as currency or money are moot. It only has to serve the purpose of currency and hold the perception as currency in the minds of sufficient numbers. It seems to qualify.