Bitcoin (available on Coinbase) price (BTC) is crashing instead of rallying: Bitcoin (available on Coinbase) price has failed to generate gains for investors since Warren Buffett, and Bill Gates rejected the cryptocurrency markets two weeks ago. Bitcoin (available on Coinbase) price lost almost $1,800 in the last two weeks.
Several other industry experts are also refuting Bitcoin (available on Coinbase)’s potential to work as an alternate currency. They believe the higher level of volatility makes it difficult for the general public to use it as the medium of exchange.
Source Image: coinmarketcap.com
Bitcoin (available on Coinbase) price crashed to the $8,000 level today. The New York consensus summit also failed to fuel any rally for the largest coin.
PayPal Rejects Bitcoin (available on Coinbase) for Merchants Use
PayPal CFO John Rainey has rejected Bitcoin (available on Coinbase)’s potential to work as the medium of exchange, particularly for merchants that have low margins on their trades.
Source Image: twitter.com
Rainey claims that merchants usually have a 10%-15% margin on their products. Bitcoin (available on Coinbase), on the other hand, has the potential to create price movements of 10%-15% in few hours alone – this makes it difficult for merchants to accept BTC as the tool of payment.
Talking about the possibility of accepting Bitcoin (available on Coinbase) in future, the CFO said, “You could have somETHing that appeals to consumers, but if merchants don’t accept it, it’s of little value. Right now, we don’t see a lot of interest from our merchants. But if it’s somETHing that stabilizes in the future and is a better currency, then we’ll certainly support that.”
Source Image: twitter.com
Market Reaction
The market has been apparently supporting Rainey’s stance. The price volatility in cryptocurrency markets is higher than any other asset or currency. Some market participants expect increasing regulators role could help in reducing the price volatility in the long-run.
Source Image: twitter.com
Others reacted sTron (available on Binance)gly to PayPal’s CFO’s comments. They believe the threat of cryptocurrencies on banks and payment service companies has been forcing them to reject digital currencies as the medium of exchange.
Featured Image: Depositphotos/© zephyr18
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