Mar 20, 2021

Visa Will Integrate Bitcoin

Remember all the people saying Bitcoin is a fad? Most of them changed their tune a long time ago. Now you hear people say Bitcoin will never be a viable payment instrument. They might just be in for a surprise.

Visa has announced plans to enable users to pay with ₿itcoin in places where Visa cards are accepted. This follows similar announcements made by MasterCard. While it is logical for payment companies to adopt new growing currencies, these statements are important in terms of the general ₿itcoin narrative.

₿itcoin has been increasingly described as "digital gold", i.e. a store of value, as opposed to more "transacation-oriented" cryptocurrencies based on Ethereum or the Binance Smart Chain.

What this narrative left out is that gold before vanishing into vaults circulated in coins as means of payment. ₿itcoin might follow the same route, starting off as digital money before becoming a widely accepted store of value.

₿itcoin becoming a payment tool would mean a demand boost correlating with inflation of fiat currencies powered by post-pandemic stimulus. While consumer ₿itcoin demand has in the past driven price volatility, adoption by users rather than investors might have a different effect. All in all making ₿itcoin a means of payment would certainly drive demand, and most probably the price.