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Mastercard CEO Calls Bitcoin ‘Junk’

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Mastercard CEO Calls Bitcoin ‘Junk’

Thinking about buying Bitcoin? Well, if you listen to Mastercard CEO Ajay Banga’s advice, he might have you reconsidering. Banga is now referring to digital currency, or cryptocurrency, as “junk,” only there is a caveat. The caveat being that Banga only means CryptoCurrencies which aren’t supported by government infrastructure. I suppose Banga is now buying into Russia issuing CryptoRubles? Something tells me that’s not going to be the case.

Mastercard holds strong as the world’s second most dominant payment processor, only overshadowed by the mighty Visa. Banga was interviewed by the Economic Times and asked if he thought that decentralized blockchain technology would serve to cause disruptions for payment processors such as Mastercard and Visa. Banga said he’d be open to the use of cryptocurrency, but then lambasted the state of non-sanctioned cryptocurrency technology. In other words, Mastercard wants the government to step into the cryptocurrency game, at which point, Mastercard would apparently be game to play.

Banga called Bitcoin “volatile” due to its pricing temperament driven by massive investments and pro-Bitcoin news.

“If I pay for a bottle of water in Bitcoin, one day it is two bottles for a Bitcoin the other day it is 9,000 bottles. This does not work. Any currency needs stability and transparency, otherwise you will get all the illegal activities in the world. Why was the ransom for the virus (wannacry ransomware) collected in bitcoin? Why has China cracked down on bitcoin?”

JP Morgan CEO Jamie Dimon recently lashed out at Bitcoin, calling it a “fraud,” which seemingly sparked a major price surge for Bitcoin investors. Axel Weber, the former Bundesbank president, probably summed up Bitcoin hatred best when he said, “probably comes from my background as a central banker.”

Ah, alas, the truth of the matter rears its ugly head. Much of the demonizing of Bitcoin is derived from central banking infrastructure fearing a currency which the masses can use without regulation. In other words, Bitcoin cuts the head from the dragon and frees the people from their chains. Central banks have been enslaving us now for decades. Much of our economic policy is manipulated at the hands of greedy central bankers.

But there is a much more looming perspective to be discussed over the matter. A government-supported CryptoCurrency fails to be, well, a CryptoCurrency. Bitcoin is Bitcoin because it is not existing in a regulatory, easy to manipulate, environment. Once that occurs, Bitcoin is no longer a CryptoCurrency and fails to fill a sociopolitical need. Additionally, the ill-will conjecture over Bitcoin that seems to imply it’s going to crash coming from the mouths of big bankers doesn’t do much to influence the Bitcoin believers in any capacity. The big banking system is what Bitcoin contrasts against, so the resulting lambasting by the very ones who are challenged offers no real surprises. The only people swayed by Bitcoin’s persecution are those who are currently statist. Those who trust only the government to handle their needs will undoubtedly use negative Bitcoin rhetoric as ammunition for water cooler talk.

But facts are facts, Bitcoin is growing. Bitcoin is now being used to buy homes. Bitcoin is blowing away the S&P 500 as an investment opportunity. And there doesn’t seem to be much end in sight.

Bitcoin’s price has dropped some over the past few days as an anticipated Bitcoin fork takes the position. Bitcoin’s price dropped as low as $5,374.60 before recovering by the rate of a few several hundred dollars as the new Bitcoin gold split began dissemination. Back in July, a Bitcoin split also occurred creating Bitcoin cash. Bitcoin pricing eventually surged, as we all now know. My guess is that investors are going to once again, buy low through this lull period as the split settles in.

 

Author: Jim Satney

PrepForThat’s Editor and lead writer for political, survival, and weather categories.



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