Could the Bitcoin actually destroy or at the very least minimalize online merchants? The short answer is yes, of course they can and if they don’t a cryptocurrency of some kind they eventually will. That’s capitalism, change, it happens all around us everyday and it’s a good thing! If times never changed than we would still be walking around naked hitting each other with clubs. It is bothersome that any time you shop online what you ordered can be tracked, whether you are a criminal or not that is personal information. That’s the beauty of having no online merchants!
Some would say that right now PayPal does not accept Bitcoin but as this year ticks on this could be something that changes. The more widespread cryptocurrency use the more of a threat it is to merchants like PayPal. One of the great aspects behind Bitcoins are the low transaction costs, hence the possibility of eliminating online merchants. If enough people are using Bitcoins than stores will be more profitable by only accepting Bitcoins, cutting back on their transaction costs.
Eventually the best and most profitable merchants could be the ones that first started allowing the use of Bitcoins. This though is not something that is set in stone; in fact it is the opposite. The complete opposite could happen, businesses like PayPal could render Bitcoin obsolete.
That is why you really can’t say what PayPal doing is a mistake because we do not know the future of Bitcoin. There are too many questions surrounding it, questions that could make it a bad legal move for a company like PayPal. The United States government is still at the stage of trying to figure out what Bitcoin is. So far it does not look like they are doing a very good job either. Which could spell disaster for Bitcoins and everyone invested in them or any cryptocurrency. The currency is often under fire and recent hackings of the places like Mt Gox shed a bad light on the young currency. Then there are issues like the scandal at BitInstant along with websites like SilkRoad that shed an even worse light on the possible currency of the future.
With all of these factors as hand PayPal is making a smart decision and there is no telling if and when they will start accepting Bitcoin. Until a definitive answer is in, it is hard to tell how one will affect the other. Bitcoin is the experimental version of a crypocurrency so it is hard to tell what the future will hold and eBay backed PayPal isn’t exactly an old company either so it is hard to what will happen. Surely the tech savvy and innovative executives at eBay have a plan and know exactly what they are looking for. It is just a matter of how their plan will workout with such a young concept, so until a definitive move is made we can only speculate.