While cryptos endure their tough winter, various skeptics have come out to voice their opinions about what they perceive as an unstable market. The latest to throw shade on cryptos is PayPal’s own CEO, Dan Schulman.
Not A Currency
Speaking during the 2019 World Economic Forum held in Davos, Switzerland, on Wednesday, Dan had a few remarks regarding cryptocurrencies and Bitcoin in particular. First, he argued that Bitcoin is yet to be really accepted as a currency, noting that even as many people tout the crypto as globally accepted, the majority of retailers are yet to fall in line. They don’t accept payment with it.
Schulman believes that the real purpose of cryptocurrencies is only to demonstrate the power of the blockchain technology and not to take them as legitimate currencies. In fact, Schulman has told the users of PayPal’s Venmo, a mobile payment solution, not to expect the company to introduce crypto payments any time soon.
It’s Too Volatile
One of the major reasons Dan Schulman doesn’t like cryptocurrency is the nature of the market. Cryptocurrencies are volatile price-wise. In his argument, that kind of volatility makes them unattractive as adoptable currencies. To cap his point, he noted that most retailers would lose a lot of money on their sales if they’re paid with a digital currency that keeps fluctuating in price, adding that the fact that Bitcoin has been known to shift by 15% or more could be a real issue that makes retailers shy away from it.
Although the CEO of PayPal could be making a case for the survival of his company, he seems to have attracted the support of a few popular people, one of them being Chris Brendler. Chris works with the Buckingham Research Group as the director of research. Chris echoes Schulman’s sentiments, saying that transacting with cryptos isn’t merchant or consumer-friendly as the process isn’t efficient enough.
PayPal Co-Founder Is A Bull
While Schulman echoes the stance taken by his predecessor, Bill Harris, back in 2018, it’s interesting to note that one of the co-founders of PayPal is actually into cryptos. Peter Thiel owns Bitcoin, and according to him, the crypto is like digital gold. He likens his Bitcoin ownership with a hedging trick – just in case things go south. Peter is worth a cool $2.5 billion.