As we know, PayPal was never ready to bet on bitcoin due to several reasons. PayPal chief executive, Dan Schulman announced last month that PayPal is not focused on the digital currency market. One of the main reasons for this “untrust” was the volatility of cryptocurrency because which made the retailers are not willing to accept it in most parts of the world.
Is Dan Schulman right or wrong?
And that statement was not false at all, we have noted in the past few months that because of the bitcoin fluctuating up and down, even 20 percent over a couple of weeks, very low margin is left behind for the retailers. Thus, they have to lose a good deal of money on every sale and purchase.
While Schulman also stated that though the blockchain technology is something we can trust and count upon, still PayPal has a lot of options to bring some serious innovations in this technology too.
No doubt it is crystal clear that due to certain irregularities, there are a lot of hidden risks associated with the crypto investment. That’s why South Korea has banned bitcoin exchanges. Meanwhile, JPMorgan Chase chief executive Jamie Dimon called bitcoin a “fraud” last year and said he would fire any trader who traded in it.
Peter Thiel’s Point of View
Aside from the above-mentioned point of view shown by Schulman, PayPal co-founder Peter Thiel recently described Bitcoin as
“a hedge against the whole world falling apart”.
He further exclaimed that while he did not foresee Bitcoin replacing traditional currency, yet there is a strong chance that it may replace gold at some stage.
How can Bitcoin Replace Gold?
When asked to explain in detail his point of view, Peter Thiel explained his thoughts that he was not talking about a new payments system, rather it is like bars of solid gold secured in a vault that has no chance to move anywhere, and it is what he called as a sort of hedge against the whole world going falling apart.
When he was told that Bitcoin has traded around $8000 last week as continuous downward pressure from brokers, he replied that there was a probability of up to 80 percent of the world’s first cryptocurrency to become worthless.
Despite all these statements by the experts, gold remains one of the most liquid assets, traded daily in well-established exchanges all around the world. According to the London Bullion Market Association each day, gold worth of billions is traded in London alone. And to be frank, the cryptocurrency market is not quite there yet.