Big investors and business icons are rejecting cryptocurrency as a viable medium for exchange. The market has been struggling to become a “reliable currency” despite several countries legalizing digital currencies and crypto exchanges. Bearish remarks from trend makers have been negatively impacting the crypto market.
Bitcoin price (BTC) plummeted to the $8,000 level while the entire cryptocurrency market capitalization dipped to $80 billion in the last two weeks.
Jack Ma, executive chairman and founder of Alibaba (NYSE:BABA), has claimed; “Bitcoin is a bubble”. He says the company is not planning to accept Bitcoin as a payment method. Ali Baba is the largest specialty retailer in the world with a market cap of over $500 billion.
He further stated: “We should be cautious about Bitcoin. Its underlying technology, however, is really powerful. I pay more attention to a cashless society and the blockchain technology. And I am not shameful that I don’t know about Bitcoin.”
Other big specialty retailers including Amazon (NASDAQ:AMZN) haven’t yet shown any intent to adopt cryptocurrencies.
PayPal CFO John Rainey has Rejected Bitcoin for Merchants
Like Warren Buffett and Bill Gates, PayPal (NASDAQ:PYPL) CFO John Rainey has rejected Bitcoin’s potential to work as a medium of exchange, particularly for merchants that have low margins on their trades. The huge price volatility and lack of backing have impacted the credibility of Bitcoin and other digital currencies.
The CFO of the largest payment service company 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.”
It’s Frustrating for Bulls
Bulls haven’t been enjoying the increasing criticism from big names. They are presenting different theories and historical patterns to defend the cryptocurrency markets.
Beside from the tug of war between cryptocurrency lovers and haters, the price volatility and lack of backing is a real issue for retailers to accept digital coins. The market needs much more maturity and regulatory activity to earn the status of “reliable currency”.
Featured Image: twitter