At LeWeb in Paris today, PayPal president David Marcus said people should not be thinking about Bitcoin as a currency. Marcus added that unless it is backed by regulation and achieves stability, it is not deemed to be an alternative to money. He, however, added that Bitcoin is more of an asset.
Marcus explained, "People are confused. They think because it's called cryptocurrency [that] it's a currency. I don't think it is a currency. It's a store of value, a distributed ledger. It's a great place to put assets, especially in places like Argentina with 40 percent inflation, where $1 today is worth 60 cents in a year, and a government's currency does not hold value. It's also a good investment vehicle if you have an appetite for risk. But it won't be a currency until volatility slows down. Whenever the regulatory framework is clearer, and the volatility comes down, then we'll consider it."
As such, VentureBeat deduced that PayPal will not be one of a growing list of merchants all over the world that accepts Bitcoin as an alternative payment. VentureBeat said in its report that Cafe Bar 2nd Place will let you purchase beer and its other offerings via the virtual currency in Beijing. Tomcar, an Australian car-manufacturer, allows buyers to purchase off-road vehicles with Bitcoin. Finnish development firm SC5 would be paying salaries of its developers in Bitcoin. University of Nicosia in Greece accepts tuition payment in Bitcoin, and now offers masteral studies in digital currency. Android microconsole Ouya allows gamers to purchase games using Bitcoin. Recently, an unnamed Florida buyer acquired a Tesla Model S car in Bitcoins facilitated by payments service BitPay.
Marcus added that instead, there should be a revolution of showrooms that cater to online transactions, which VentureBeat shot down as consumers might want to bring their purchases home the same day they bought it.
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