PayPal Co-founder Says, People Won't Use Bitcoin for Payment

Pathik Bhattacharya
Pathik Bhattacharya Published on September 12, 2023 06:56 AM

Bitcoin (BTC) surged to about $26,000 during Asian trading hours on Tuesday, reversing a three-month slump to under $25,000.

PayPal Co-founder Says, People Won't Use Bitcoin for Payment
Source: Unsplash

David Marcus, the CEO of Lightspark and a prominent Bitcoin advocate, believes that Bitcoin may not become a widely adopted method for everyday purchases. This perspective may seem surprising, given Marcus's background as a co-founder of PayPal and his current involvement in developing Bitcoin's lightning network.

Lightning Network Fastening Bitcoin Payments

Marcus sees the future of payments not in Bitcoin itself, but rather in the lightning network—a layer-2 scaling solution built on top of Bitcoin. This network is designed to enhance the speed, cost-effectiveness, and practicality of small BTC transactions. It processes Bitcoin transactions separately before settling them on the main blockchain.

The vision for the lightning network is ambitious. Marcus aims to transform it into a "universal protocol for money on the internet," akin to how texting serves as a universal protocol for communication. However, the currencies being transferred over the network would still be the familiar fiat currencies we use today.

In Marcus's vision, a fraction of a Bitcoin on the lightning network serves as a data packet on the internet, but for value. Users would have the flexibility to send and receive any currency of their choice, be it dollars, yen, or euros. The lightning network acts as the intermediary settlement layer, ensuring real-time, low-cost, and final settlement of transactions.

Bitcoin's Market Dynamics and HODLing Trends

Glassnode on Monday released their weekly report on Bitcoin where the major insights were the major factors around Holders and market sentiment. Examining the Bitcoin market's dynamics reveals intriguing insights into investor behaviour and sentiment.

Long-Term Holders and Supply Trends

According to Glassnode, Long-Term Holders (LTH) now hold a record 14.74 million BTC, indicating a steadfast commitment among existing holders. This suggests that these investors are likely the primary participants in the market.

Short-Term Holder Behavior

Conversely, Short-Term Holders (STH), representing the more active segment of the market, hold the lowest supply since 2011. The majority of their supply is in an unrealized loss, with only a small fraction still considered 'in profit.'

While the profitability of Long-Term Holders is gradually increasing, it remains historically low. Over 26.7% of LTH supply is below their acquisition price, emphasizing the challenges that need to be overcome.

Bitcoin Price Analysis

As per CoinStats, Bitcoin is currently trading at $25,761.84, down -0.38% in the previous 24 hours, with a live market size of $502 billion. It has a circulating supply volume of 21,000,000 BTC coins and a maximum supply volume of 21,000,000, with a 24-hour trading volume of $36B.

bitcoin price chart

Source: CoinStats

Bitcoin is currently traversing oversold territory. Oscillator indicators, such as the Relative Strength Index (RSI), are still below 30, indicating selling weariness. 

Such a dynamic frequently opens the door for a brief bullish corrective before the decline resumes. Concurrently, the Moving Average Convergence Divergence (MACD) indicator has moved into the sell zone, with histograms forming below the zero line—yet another indicator of negative sentiment. 

The 50-day Exponential Moving Average (EMA) is at $25,500, and with Bitcoin being priced around $25,200 and trading persistently below the 50 EMA, the bearish bias remains strong.

bitcoin price chart

Source: TradingView


David Marcus's perspective on Bitcoin's role in payments highlights the evolving landscape of digital currency. As Bitcoin explores new avenues like the lightning network, market dynamics continue to shift. The resilience of Long-Term Holders and the behavior of Short-Term Holders provide a nuanced view of investor sentiment. These interconnected perspectives offer a comprehensive understanding of Bitcoin's journey in the financial ecosystem.


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