- Affirm may adopt cryptocurrency, says Max Levchin.
- The market movement will determine whether or not to integrate digital assets, says Levchin.
Affirm May Have to Consider Cryptocurrency – Max Levchin
Max Levchin, the founder and CEO of Affirm, said that the company might consider cryptocurrencies as a means of payment if Bitcoin continues to soar. Levchin, who had always been distrustful of the crypto space, recently revealed that regardless of the doubts, “you have to listen to the market.”
Last week, bitcoin’s value increased by 16% after Tesla invested $1.5 billion in the cryptocurrency and announced that it would allow customers to buy cars using digital assets. Levchin commented that bitcoin has grown, and if it eventually becomes an accepted means of exchange, the company might have to consider it. He explained that the growth experienced by the crypto is outstanding.
He added that the market direction would determine their next step, whether or not to incorporate digital assets into fintech products. Levchin said that the company might consider using cryptocurrency once people start using it to pay for their sporting goods and Pelotons.
Max Levchin Now Recognises Bitcoin as More Institutions Adopt Cryptocurrency
Levchin had earlier said that he was indecisive about cryptocurrency because it was hard to decide whether it is just a fast way to make money or a currency. He explained that long-term investments are his preference. However, he recently commented that the firm might need to adopt bitcoin.
Affirm released its first quarterly earnings report on February 11 after it went public last month. Even though the company’s revenue was way better than expected, it still recorded a loss of about $31M at the end of the year.
Many large companies are starting to invest in cryptocurrency as bitcoin gains more traction. Last week Monday, Tesla invested $1.5 billion in Bitcoin, which further boosted cryptocurrency acceptance.
America’s oldest bank, BNY Mellon, also revealed that it would custody bitcoin some days ago. The bank announced its plans to act as a crypto asset manager for its clients – to hold, transfer and issue cryptocurrencies to its client base. The bank plans to manage cryptocurrencies using a platform that will also hold Treasures and stocks.
More institutional investors keep opting for bitcoin and other cryptocurrencies as the price soars higher and after big companies like Tesla invested in cryptocurrency. Last week, Mastercard joined the bandwagon when it revealed that it would allow its cardholders to transact in cryptocurrency.
The adoption of bitcoin might have gotten better this year when MicroStrategy, a significant pitcher of bitcoin, acquired more bitcoin worth about $10M on February 2. The company now has 71,079 bitcoin in its custody, which is worth about $2.5 Billion.
With the increase in the traction of cryptocurrency, it is becoming more apparent that almost all institutions will, at some point, embrace the technology altogether. BTCtreasuries revealed that publicly traded companies and fund managers have $60 billion worth of bitcoin locked up, about 6% of the circulation supply.