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Will Bitcoin Kill Credit Cards?

Will Bitcoin Kill Credit Cards?

After DeFi, “institutional investors” probably became the buzzword for the crypto market. Especially institutional investors such as MicroStrategy and Square came to the fore.

Looking at the institutions that went on a bitcoin buying spree, many analysts have had a say over what it means.

Popular American computer scientist Paul Graham is one of them. Graham makes the following emphasis:

“Possible future scenario: Credit card companies are becoming increasingly selective about who to process transactions for, and this is what drives the general public to use cryptocurrency for transactions, ultimately killing credit cards.”

Kill Credit Cards

Is it possible? Well, let’s investigate. Although Bitcoin is priced at more than twice its fair value, institutions are buying. The sudden emergence of interest in cryptocurrencies from institutions such as PayPal and VISA has sparked this speculation. In fact, BlockSpring’s co-founder @pavtalk commented on credit cards as my claim.

Allegations

Step 1: Backward compatible crypto cards with existing networks to build consumer volume. Differentiate yourself in the awards.

Step 2: FBO is similar to Venmo / Cash, but with built-in vendors for direct, instant P2P payments off-chain with crypto.

Step 3: Direct P2P payments on the chain “

However, the biggest challenge in this case is the “chargeback guarantee” when there is loss or theft, something that is highly unlikely with Bitcoin debit cards. In addition, due to the rapidly growing popularity of Bitcoin and the increase in alternative payments, it is entirely possible that decentralization or open banking will replace the traditional banking system and payment providers, including credit card companies.

DeFi Ecosystems

There are several projects and tokens in the DeFi ecosystem that offer credit services, and many other features are added on top of that. With open banking APIs that commodify transactional value, credit card companies can create an ecosystem that paves the way for CBDC to remain relevant and preferential. Another interesting consequence of the Bitcoinization of banks and payment providers may be the emergence of Lending Protocols.

As Mastercard joined the blockchain digital identity alliance last year, more credit card companies can enter the digital identity business and the credit protocol space in crypto, which can leverage identity services to reduce risk. The moves will pave the way for an entirely new set of loan products and protocols in this area.

The long-term impact of corporate and banking involvement and interest in Bitcoin will be on the rise. However, in the short term, the price can be further corrected depending on the on-chain analysis. The unspent Bitcoin map highlighted the level at which Bitcoins were accumulating.

Will Bitcoin kill Credit Cards?

Bitcoins accumulated at price levels ranging from $ 4,000 to $ 19,000 remained unspent at the time of writing. In addition, there were additional purchases above the $ 18,000 level, and the purchased Bitcoins were kept in exchange wallets rather than withdrawn. Bitcoin may be heading for a long-standing price rally, which could possibly kill credit cards unless credit card companies discover solutions that interact with cryptocurrencies.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton Theblockchainnew.com he is the editor-in-chief of the news portal. Blockchain is love.

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