PayPal Believes Bitcoin Will Succeed as a Cryptocurrency

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Most of the people do not understand how cryptocurrencies work. A famous question is, where do you have the coins? Despite Bitcoin is in the market since almost 10 years, the same people believe that it will not last longer. But the CFO of PayPal sees positive things in Bitcoin for the future.

PayPal Believes Bitcoin Will Succeed

John Rainey, PayPal’s Chief Financial Officer, is almost sure that Bitcoin will become a popular method of payment. As reported by the Wall Street Journal, Rainey said that the volatility does not make it reliable.

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“Given the volatility of Bitcoin right now, it is not a reliable currency for transactions because if you are a merchant and you have 10% profit margin, and you accept Bitcoin, and the very next day bitcoin drops 15%, you are now underwater on that transaction.”

Of course, he also believes that Bitcoin is a legitimate currency. The problem is that it is not ready for mainstream adoption. He has also expressed that blockchain technology has real merit.

Mr Rainey has also said:

“At some point there is very high likelihood. The technology there is real merit to it. I do think, though, it will be years down the road before we see the kind of ubiquity and acceptance that make it a form of currency that is used every day.”

In the past, PayPal has shown support for Bitcoin when merchants were able to accept cryptocurrencies on the platform. Due to different problems and the nature of Bitcoin, PayPal decided to stop supporting cryptocurrencies. PayPal CEO, Dan Schulman, said that Bitcoin is an “interesting experiment” and that “it could change the world.”

eBay Drops PayPal as the Main Payment Option

eBay has been a very close ally of PayPal. The platform was processing payments through PayPal as the main option. But some weeks ago, eBay announced that they are dropping PayPal as the main payment option.

The company has been working with Adyen, a Dutch enterprise that has also the possibility to accept cryptocurrencies. The integration may occur in the next two quarters of 2018 (Q2 and Q3). It is important to mark that PayPal will still be an option to pay for products and services. What changes is that it will not be the preferred payment mechanism.

Some companies have been dropping Bitcoin as a means of payment due to the high fees associated with it. But since some weeks, Bitcoin fees have been substantially reduced. Indeed, Bitcoin Cash, Bitcoin hard fork, had higher fees than Bitcoin. The fees have been reduced due to the fact that there is a wider implementation of Segregated Witness.

In the next months, the scaling solution of Bitcoin, may be ready to be implemented, meaning that fees will be near to zero and transaction times will not be something to think about.

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