In the latest Bitcoin news, we are eyeing an analysis which is very interesting and comes from Lisa Ellis, who is an equity analyst with the sell-side research company named MoffettNathanson.
As Ellis wrote in a client note centered about the rise of Bitcoin and other cryptocurrencies:
“Cryptocurrency systems (e.g., Bitcoin, Ethereum, Ripple) are potentially disruptive to private payment systems. Their core design characteristics — which are aimed at enabling ‘freedom of money’ — are in direct contrast to the characteristics of most traditional, private payment systems.”
She also said that cryptocurrency could become an existential threat to Visa, Mastercard and PayPal – but that is not happening anytime soon. Still, Ellis believes that these well established payment giants should embrace crypto and blockchain or risk losing the market share to companies like Ripple and Veem that are known for leveraging cryptocurrencies for cross-border payments.
What is interesting is that as of recently, the CEO of PayPal Dan Schulman showed his skepticism about the mass merchant adoption of Bitcoin. He also noted that there are very few retailers that accept crypto. As he said during the World Economic Forum in Davos, Switzerland:
“We’re not seeing many retailers at all accept any of the cryptocurrencies. But I think the underlying technology is interesting.”
Schulman also cited the price fluctuations as one of the reasons for his reluctance to embrace crypto.
“The volatility of [bitcoin] makes it actually unsuitable to be a real currency that retailers can accept,” he concluded.
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