Bitcoin Payment Dreams Lost as Stablecoins Take Over
Frederick Thiel, CEO of MARA, a Bitcoin miner, stated that Bitcoin's chance to become a widely used payment method has passed. He attributed this to price volatility, which makes it unreliable for high-volume commercial transactions. According to Thiel, businesses require predictable pricing to manage thin profit margins.
Stablecoins, pegged to fiat currencies like the US dollar, offer consistent value that businesses can plan around without added risk. Thiel expects stablecoins to dominate AI-related crypto payments going forward. He noted that newer payment rails built around stablecoins are designed with speed and scale in mind.
Thiel's comments reflect a broader shift in how the crypto industry views Bitcoin's role. Rather than positioning it as a currency, many now treat Bitcoin as digital collateral. Thiel maintains that Bitcoin still holds value as a store of wealth outside centralized financial systems.