I'm not saying Bitcoin will appreciate or depreciate. That's for markets to decide.
When someone else deems something is of value, then it has value, when people don't value it, then there's no value.
Now, let's think about this...
What's the big deal with Paypal allowing Bitcoin payments?
Ok... supposedly it allows Bitcoin to have more uses... more take up rate, etc...
But in the end, Bitcoin, is just like any other commodity.
It hardly behaves like a currency.
How about, one day, Paypal allows Gold ETFs to be used as a payment form?
What so hard about that?
The transactions would be the same, as when you pay for any item in USD.
You'll convert SGD to USD, then pay in USD.
Similarly, you can own Bitcoin, then pay with Bitcoin, Paypal will just convert Bitcoin to USD, take a cut of the commission and pay the merchant in USD.
They could do the same with a Gold ETF. You want to pay with a Gold ETF, Paypal just converts it to whatever currency the merchant wants and executes the transaction for you.
If you want to pay SGD and the merchant wants to receive Silver ETF... Also can!! Same same.
Heck... system-wise, we could even pay for items using DBS shares.
No difference. Cos in the end, everything is converted to another currency before being paid to the merchant.
Paypal is just being a "money changer" and taking a cut of the transaction.
For Paypal, it's just another service that they provide.
Whether this helps Bitcoin become more mainstream or not, well... not for me to decide.
Historically, mankind has put value on a lot of different things to make transactions, from seashells, to gold, silver, iron, gems, cans of sardines, packets of ramen, etc.
Thing is... let's not call it a currency... it's as much a currency as gold or WTI Crude is a currency.
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