Source Image: coinmarketcap.comBitcoin 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 for Merchants UsePayPal CFO John Rainey has rejected bitcoin's potential to work as the medium of exchange, particularly for merchants that have low margins on their trades.
Source Image: twitter.comRainey claims that merchants usually have a 10%-15% margin on their products. Bitcoin, 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 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 ReactionThe 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.comOthers reacted strongly 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