PayPal’s former CEO says ‘Investing in Bitcoin is like gambling.’

Cryptocurrencies such as Bitcoin appear as a gamble to PayPal’s Holdings Inc. (PYPL) CEO Bill Harris, who feels that digital assets are nothing more than an elaborate scam. While he isn’t the first one to express this view (i.e., Warren Buffet, Bank Of Canada Governor Stephen Poloz, and others), he is one of the few to outright declare that this new age of virtual currencies could not and will never be as useful as the traditional means of payment currently used.

In fact, the entrepreneur believes that Bitcoin and other cryptos will never serve as an excellent store of value, and that is primarily due to their high volatility. The trend has been followed by many others before him, and we would agree that there is some truth to the idea that the value of cryptocurrencies would be hard to predict or estimate.

In this context, we know that prominent financial figures have stated, time and time again, that the most we can declare about cryptocurrencies is that they are similar to buying risks, which makes the entire aspect of investing more like gambling.

For instance, Governor Stephen Poloz had stated that enthusiasts looking to invest in Bitcoin should read the fine print before doing so, ensuring that they are fully aware of what they’re getting into. Similarly, Bill Harris, who also successfully served as CEO of Intuit [INTU] and Co-Founder of Personal Capital Corporation, stated the following during an interview:

“Bitcoin is more of a gamble than an investment, and the investors are drinking the Kool-Aid.”

Bitcoin and Blockchain

While some will view his comments as incredibly harsh, not even Harris could deny the power and potential implications of the technology behind these digital assets, the blockchain. In fact, many of those who oppose cryptocurrencies have also stated that blockchain offers incredible value.

There is belief that this technology could help not only developed countries, but also underdeveloped ones, establishing greater transparency and trust between companies, and ultimately eliminating the need for third-party interruptions. For Bitcoin, on the other hand, Harris believes that the digital asset offers limited usefulness and value.

To put things into context, we need to look at Bitcoin as a whole. Its price had rapidly increased by nearly 1,300% since its inception, reaching an all-time high of $20,000 in 2017. But, it wasn’t that long after that the coin also faced a massive downfall, particularly in the beginning months of 2018, when a substantial drop brought the digital asset at around $6,000.

As a result of these events, Harris gave a statement which matched the words of advice of a prominent New York University economist under the name Nouriel Roubini. They both called Bitcoin “the biggest bubble in human history”, and soon after investors started looking at other commodities such as gold for gaining back their lost funds.

What Happened Next

Naturally, Bitcoin supporters and promoters weren’t going to sit idle while their favourite cryptocurrency was slandered in the media. Instead, they went on to state that scarcity was the primary reason for which the value of Bitcoin has gone down.

Plus, based on a variety of different sources, it was declared that solely 21 million Bitcoins can ever be created at one point and that 17 million Bitcoins were going to be mined soon and clear the situation.

This warranted a response for entrepreneur and financial guru Harris as well, who jokingly argued that:

 “My autograph is scarce too, but I promise that I will never autograph a piece of paper more than 21 million times. But this does not make it valuable.”

While the arguments on both sides are valid, we can’t forget that the cryptocurrency market is indeed subject to volatility, as shown many times before. Without adequate regulations, it will be hard to know what rules to follow regarding digital assets, and that can be a scary thought.

Of course, we can’t forget that blockchain technology is worth investing in, and many industry giants are already taking advantage of this opportunity. Harris is just one of them, who declared the following during an interview:

 “There’s the currency like Bitcoin, and then there’s the technology. Blockchain technology has terrific applications, including financial transactions but we don’t need a new currency to do it.”

PayPal’s Role in All of This

While debates to whether cryptocurrencies are or aren’t worth investing in continue, the application of blockchain in casinos and the integration of PayPal as a means of payment keeps growing.

Nowadays considered a world-leading eWallet for online payments, you can come across the PayPal logo along multiple gambling platforms. One of the most significant advantages of using PayPal as an eWallet is that there are numerous built-in layers of protection, including dispute functions and arbitration systems which offer guaranteed peace of mind.

If that wasn’t enough of an incentive, here is what else PayPal offers:

• Excellent speed and convenience, asking you to wait only a few minutes to have your payments processed
• Protecting your account without maybe even realizing it, as PayPal can hide all your bank details from the other party, again for maintaining your anonymity and protection.

If you’re already hooked on the idea, you should note that some countries such as Australia, Canada, or the United States might not offer this service. By contrast, there is more than one site with online gambling that accepts PayPal within the United Kingdom, Sweden, Greece, Denmark, and other countries. Thus if you’re from one of these nations, the world is your oyster!

If you’re wondering which other casinos accept PayPal, this might be helpful:

Conclusion

Although PayPal’s Holdings Inc. (PYPL) CEO Bill Harris is bearish in believing that Bitcoin is nothing more than a scam or a gambling opportunity, the decentralized world is continually growing, and there doesn’t appear to be much stopping it. As it stands, Bitcoin remains at around $9.240 at the time of writing, according to CoinDesk, and despite multiple moment of volatility, we have always seen the market push back up.