London, UK, 4 Sep 2021, ZEXPRWIRE – Cryptocurrency is quickly becoming part of our daily lives. However, its adoption by larger companies like PayPal may be the key to bringing cryptocurrency into the mainstream – but only time will tell.
This past week saw one of Silicon Valley’s largest and most influential companies, PayPal announce it would open its digital wallet to virtual currencies such as bitcoin. TrueNorthBit broker, Albert Goldman, says that this gives users the ability to store their bitcoin and use it for future purchases through PayPal’s digital wallet, which means they can essentially spend their cryptocurrency like regular money. The company also said that it would consider alternative currencies, such as Litecoin and Dogecoin, but that discussion will come later.
This is not the first time that someone has tried to integrate virtual currencies into PayPal’s ecosystem. A few months ago, GoCoin started offering its payment services to eCommerce sites that we’re looking for an easy way to accept bitcoin payments. The problem was that the site owners needed to have their own bitcoin wallets or accounts with other online players who attended this market space, such as Coinbase or Circle.
However, PayPal is a more trusted name in the eCommerce business, and its reputation has been spotless for nearly two decades now. Linking bitcoin to PayPal’s payment system means that individuals can spend their coins with relative ease without having to jump through hoops or use third-party wallets. While it may just be a matter of time before PayPal jumps on the bandwagon and starts to accepts bitcoin payments directly, this is a significant step towards the cryptocurrency’s recognition as a true, viable currency.
Some believe that this move by PayPal may not necessarily make virtual currencies more mainstream – at least not anytime soon. For example, David Wolman said that although a growing number of companies are now using cryptocurrency, it still has yet to really strike the right chord with the average person.
“I don’t think that PayPal’s move will result in much more use of bitcoin among your friends and neighbors,” said Wolman, who also wrote The End of Money. “But I do think that PayPal’s embrace will lead to a spike in bitcoin interest, which is something that has been sorely needed.”
Another news source reports on PayPal’s announcement by mentioning some of the benefits of using bitcoins. For example, it takes only three steps for merchants to accept virtual currency payments, and there is no need for PCI compliance. In addition, there are no chargebacks, which makes it a safer way to do business.
Even though bitcoin is gaining traction and being pushed into the mainstream by well-established companies such as eBay and PayPal, cryptocurrency is still not quite ready for everyone just yet. Part of that reality has to do with its price volatility – something that will need to be resolved before virtual currency becomes more widely accepted.
Wolman said that everyone should give digital currencies another year before they really start noticing their presence daily. At the same time, he also believes that this is just the first of many companies that will begin to adopt cryptocurrency as part of their payment plans.
“[This] is just the beginning of a wave that will include similar partnerships with other payment companies and perhaps even consumer electronics manufacturers,” said Wolman. “I expect to see more concerning numbers in 2023.”
However, it should be noted that PayPal has had an arguably positive effect on virtual currencies already. For example, just days before its announcement, the price of one bitcoin fell below $300. However, it has since risen to more than $400.
Another news source believes that PayPal’s adoption of bitcoins might not make virtual currency any more mainstream. Still, it will certainly serve as a positive step forward for this emerging technology. People are still figuring out what this whole crypto phenomenon is all about, and the only way to gain more traction is by allowing them to use it in their everyday lives.
“I don’t think that this announcement will make Bitcoin ‘mainstream,’ but I do think it’s a step in the right direction,” said Brian Roemmele, who has written extensively about cryptocurrency. “We see the growth of new services and businesses that accept Bitcoin.”
He added, “But growth is still very strong. I believe we will see a tipping point in 2022 to 2023 where interest in accepting Bitcoins from the 1.3 billion small business merchants around the world will begin to drive exponential results.”
In other news, PayPal has been making moves recently to embrace virtual currency. For example, just last month, it was announced that Braintree would soon enable merchants to accept bitcoins as a form of payment – and that’s only the tip of the iceberg.
“We’re announcing PayPal’s first foray into Bitcoin,” said Bill Ready, PayPal’s CTO. “We believe digital goods are becoming an increasingly important part of the overall shopping experience.”
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