PayPal director, Wences Casares, recently penned down a blogpost, in which he wrote his views on bitcoin. Starting off, he noted that Bitcoin was a fascinating experiment, but it was only an experiment.
He said, “1 Bitcoin may be worth more than $1 million in 7 to 10 years. That is 250 times what it is worth today (at the time of writing the price of Bitcoin is ~ $4,000). I suggest that a $10 million portfolio should invest at most $100,000 in Bitcoin (up to 1% but not more as the risk of losing this investment is high). If Bitcoin fails, this portfolio will lose at most $100,000 or 1% of its value over 3 to 5 years, which most portfolios can bear. But if Bitcoin succeeds, in 7 to 10 years those $100,000 may be worth more than $25 million, more than twice the value of the entire initial portfolio.”
This post is fascinating, considering PayPal’s anti-cryptocurrency stance. As earlier reported by Crypto-News India, PayPal Chief Executive Officer (CEO) Dan Schulman had said Cryptocurrencies have a very uncertain future and that they’re an ‘Experiment’. Last year in March, it was made public that Paypal had filed a patent to make cryptocurrency payments faster.
Earlier this year, Schulman had stated at the World Economic Forum in Davos, Switzerland (often simply referred to as Davos), “We’re not seeing many retailers accepting cryptocurrency.” He had noted that cryptocurrencies were more like a reward system for using blockchain, instead of actual currencies. Schulman had noted cryptos’ volatility, and specifically explained how it’s a bad match with retailers’ typically narrow margins. It wasn’t an aggressive or impolite take directed to take down crypto advocates – but it was still quite negative, as reported by news portal, Altcoin Era.
Arguing on both sides of the coin, Casares opined, “Bitcoin is not an asset. It does not produce earnings or dividends and it does not generate interest. And Bitcoin has no intrinsic value. Bitcoin is simply money and most forms of good money have no intrinsic value. Gold, the US dollar and national currencies do not have any intrinsic value either but because they have had a monetary value for a long time most people perceive them as being intrinsically valuable, which is a big advantage. The main hurdle Bitcoin has to clear to become successful is to develop a similar widespread social perception of value and achieving that is quite an ambitious goal.”
He believed that even in the event that bitcoin does gain massive global success, it would not replace any national currency and added that ” it may be a global non-political standard of value and settlement.”
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