Bitcoin Loses Ground as Payment Method, Stablecoins Take Center Stage

The CEO of MARA Holdings, Fred Thiel, believes that Bitcoin has missed its chance to become a widely accepted payment method. According to Thiel, stablecoins are now better suited for everyday transactions due to their stable value. He noted that businesses processing thousands of transactions every second cannot afford price swings in Bitcoin, even if they are small.

Thiel pointed out that Bitcoin was originally designed as a digital currency by Satoshi Nakamoto, but the market has changed since then. With stablecoins offering a more reliable and stable value, Thiel expects them to win the payments race in the crypto space.

MARA Holdings is also shifting its business strategy beyond Bitcoin mining, focusing on artificial intelligence (AI) data centers which generate higher returns. The company sold around 20,000 BTC over the past year to reduce nearly $1 billion in convertible debt and still holds 36,303 BTC, making it one of the largest corporate holders.