LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
No Result
View All Result
Bitcoin News

Mike Novogratz: BTC Is Bad for Payments

by Nick Marinoff
June 4, 2021
in Bitcoin News, News
Share
logo

Earn Your First Bitcoin Sign up and get $12 Bonus Referral bonus up to $3,000

Sign up

Mike Novogratz – a billionaire investor and former hedge fund manager – has always been there to defend bitcoin whenever it is acting crazy, but in a recent interview, he claimed that the world’s number one digital currency by market cap will never be used for payments.

Mike Novogratz Says BTC Will Not Be Used for Payments

This is likely going to come as a huge blow for bitcoin and crypto purists given that the asset and many of its altcoin cousins were initially set up to replace credit cards and fiat. The idea that bitcoin would be used in the future not just as a speculative asset, but as a means of paying for goods and services has been slowly realized given how many retailers and companies are turned off by the asset’s volatility.

When something as vulnerable to price swings as bitcoin comes along, it is more likely that retailers will look upon it with a raised eyebrow rather than with a smile. The currency presents hazards for companies given they can potentially miss out on profit should they fail to transfer it to fiat quickly enough.

Say, for example, you walk into a store and purchase $60 worth of merchandise using bitcoin. You leave, and the store does not exchange that BTC for fiat right away. The next day, the price of bitcoin changes that turns your $60 into $30. You will still have walked away with everything you bought, but the store has just lost half its profit for that particular transaction. It is not entirely fair, and thus we cannot fully blame the many enterprises that have said “no” to BTC payments in recent years.

But the idea of bitcoin as a payment method suffers from other problems as well. According to Novogratz, bitcoin is an extremely slow system that could not handle mass payments and transactions even if it wanted to. In a recent interview, Novogratz stated:

Bitcoin’s not going to be payments. The system really is not set up for payments. It’s not fast enough for thousands and thousands of transactions.

It’s Not Fast Enough

By contrast, he sees bitcoin serving as the ultimate hedge fund in the coming future. He believes it will be a store of value similar with gold, and that many will turn to it to keep their portfolios intact and their wealth steady and protected should moments of economic strife take hold just like they have done over the past year during the coronavirus pandemic. He comments:

What’s unique about stores of value is they’re social constructs. It has value because we say it does. There has never been a more successful brand created in 12 years by a community. It was like they floated the baby in the river, and the community raised the baby and it’s now worth around $1 trillion.

Related Posts

Cardano (ADA) Price
Altcoin News

Cardano (ADA) Price Analysis: Topside Bias Vulnerable Below $0.265

ADA price is trading in a bearish zone below the $0.255 support zone against the US Dollar. The price...

by Aayush Jindal
September 26, 2023
Ethereum Price
Altcoin News

Ethereum Price Analysis: ETH Could Take Major Hit Below $1,600

Ethereum price is struggling below the $1,650 resistance against the US Dollar. ETH price is now trading below $1,600...

by Aayush Jindal
September 26, 2023
Brandon Mintz of Bitcoin Depot on the Many Changes to the ATM Industry
Bitcoin ATMs

Brandon Mintz of Bitcoin Depot on the Many Changes to the ATM Industry

Brandon Mintz is the CEO of Bitcoin Depot, one of the largest crypto ATM firms in the world. He...

by Nick Marinoff
September 25, 2023
Bitcoin Suisse Sees Big Things Happening for Crypto Soon
Bitcoin News

Alyse Killeen: Bitcoin is Becoming Much More Mainstream

Is bitcoin – the world’s number one digital currency by market cap – finally gaining mainstream traction and attention?...

by Nick Marinoff
September 25, 2023

Top Casinos

Crypto Casinos
Crypto Casinos
Bonus Finder
Bonus Finder

Press Releases

  • Ibiza NXT 2023 – Heading toward a purpose-driven Web3 innovation journey

  • Alaya: The Pioneer of Artificial Intelligence Data

  • Zeebu Secures $25 Million in Presale Funding for World’s First On-chain Invoice Settlement...

  • Reef Labs $10M Accelerator Program COHORT 1 Begins, Paving the Way for Web3 Innovators

  • Registration for the Finance Magnates London Summit 2023 is officially open!

About us:

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. We cover BTC news related to bitcoin…

Follow us:

  • This field is for validation purposes and should be left unchanged.

  • About
  • Partners
  • PR
  • Advertising
  • Privacy
  • T&C
  • Contact
  • Trading Software
  • Online Casinos Germany

© 2023 Live Bitcoin News. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise

© 2023 Live Bitcoin News. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.
Go to mobile version