PayPal’s Chief Financial Officer John Rainey said that Bitcoin and other digital currencies would very soon become a very popular means of payment. According to Rainey: “Bitcoin is very volatile right now thus not a reliable currency for transactions. This is because if you are a merchant and you have a profit margin of 5% then accepts Bitcoin after which it drops by 15% then that would mean you have made a loss.”
However, despite the volatility nature Rainey still recognizes Bitcoin as a legitimate currency. He, however, sees Bitcoin as not yet ready to go mainstream. Rainey went on to state that:
“At this moment there is a high likelihood. The underlying technology is real, but it will take some years before we see full acceptance of it becoming a daily currency.”
This is not the first time PayPal’s executives are supporting Bitcoin and other digital currencies. In fact, PayPal was one of the very first companies to accept cryptocurrency in its platforms allowing people to pay using PayPal. Earlier this year the CEO of PayPal called Bitcoin an interesting experience noting that it had the ability to change the world. More to that Wences Casares who is the CEO of Xapo predicted that it was possible in future to see one Bitcoin costing $1 million.
Not everyone, however, agrees with Wences and Rainey’s about the long-term assessment on Bitcoin as a currency. This week the Governor of the Bank of England Mark Carney said that Bitcoin had already failed in all phases. The governor stated that:
“Bitcoin has pretty much failed thus far the traditional aspects of money. So far it’s not a store of value since it’s all over the map. More to that no one uses it as a medium of exchange.”
In conclusion Venture capitalist who is also Tezos investor Tim Draper claimed that Bitcoin was the future of currency. He went on to claim that a big part of the world’s currency will someday be comprised of digital currencies.