Bitcoin – the world’s largest cryptocurrency by market cap – is now trading for just shy of $6,400 at press time. This is a little over $100 less than where it stood 24 hours ago.
Bitcoin is likely scaling back a bit following some harsh comments from Coinbase CEO Brian Armstrong. As the head of one of the largest and most trusted digital currency exchanges across the globe, Armstrong says it will probably be a long time before mass adoption of cryptocurrency occurs.
“I think it will be quite some time before you cross the street to Starbucks in the U.S. and pay with crypto,” he comments.
His words are shocking in the sense that the Intercontinental Exchange (ICE) recently announced it was working with several large companies to bring Bakkt to life. The new platform will be introduced in November with the goal of assisting retailers and large-scale companies in buying, selling and trading digital currencies.
One of the companies ICE was allegedly working with was Starbucks. Company spokespeople have recently had to “row back” from reports claiming that the company was implementing new payment software that would allow customers to pay for drinks, baked goods and assorted merchandise with virtual currency.
“Customers will not be able to pay for a Frappuccino with bitcoin,” a representative later alleged following the announcement that the coffee king would work with Bakkt.
Armstrong says that bitcoin still has several corrections to go through before its technology officially matures. In addition, he says not every country is likely to see the benefits of digital currency, and along with the internet, will ban the use of bitcoin among its residents.
“The technology is going through a series of bubbles and corrections, and each time it does that, it’s a new plateau. People’s expectations are all over the map, but real-world adoption has been going up. They rightly want to protect consumers, though, and there are going to be some countries in the world, just like the internet, where bitcoin and cryptocurrencies are restricted.”
In the long run, while he’s confident in bitcoin’s future, he says only about ten percent of citizens are using bitcoin and crypto for actual purchases, and he thinks it will take some time for enthusiasts to witness the mass adoption they strive for.
“I’m bullish on countries that are going through economic crises,” he says. “Over the next three to five years, where everyone has the internet and a smartphone, you could see people adopting bitcoin and cryptocurrencies as an alternative.”
In related news, Armstrong recently made the claim that Coinbase was signing up about 50,000 new customers each day.