The Battle for One World Payments

It only took two years for Venmo to exit with over $25 million. A year later, it was worth $800 million. The company started in 2010 when Bitcoin was selling at $0.08. Today, Venmo is part of PayPal and Bitcoin is hovering around $40,000.

Regardless of the foundation laid by Satoshi, crypto has yet to be accepted as a mainstream payment method. Instead, it has become a means of speculation. Meanwhile, everyone from hairdressers to attorneys accepts Venmo. Including groups of twenty-somethings splitting a restaurant check.

The technical reason for crypto not being accepted as payment has to do with scale. It can take anywhere from a few minutes to over an hour for a payment to clear. A problem that gets worse as more people use the network.

Network speed is not the only issue. As Bitcoin grew in popularity, two events cumulated to tarnish its reputation. The first was the security issues of Mt. Gox and the second was Silk Road. All the while Venmo was increasing usage as a convenient alternative to cash. Thus forcing Bitcoin to morph into digital gold. So much for round one.

As a vehicle for investment, crypto reached the mainstream when Bitcoin futures started trading on the Chicago Mercantile Exchange (CME) in 2017. However, payments between individuals are still dominated by Venmo. For example, buy a used coffee table on NextDoor and the seller most likely asks for Venmo.

While Bitcoin and Venmo were hashing it out to replace cash during 2015, programmer Vitalik Buterin launched Ethereum. Starting with 72 million coins, the network was viewed as just another Bitcoin by the media. However, it was conceived as something much different.

Where Bitcoin was originally designed as a decentralized means of payment, Buterin envisioned a decentralized internet. Not just a replacement for money but a paradigm shift that encompasses all digital life. A network that is now fueling the new wave of decentralized finance (DeFi) applications and web 3.0.

Today, Ethereum is evolving into a financial platform encompassing insurance, securities, and lending to name a few. “The thing that I often ask startups on top of Ethereum is, ‘Can you please tell me why using the Ethereum blockchain is better than using Excel?’ And if they can come up with a good answer, that’s when you know you’ve got something really interesting.”, says Buterin.

Today, Bitcoin is the gold standard for crypto investing and Ethereum is at the core of disrupting banking. However, Venmo is still the preferred means of peer-to-peer payments. The reason is that crypto has not created a fast enough method of settlement and/or an easy enough means to transact.

Venmo recently partnered with Sports Illustrated to provide the payment platform for their new ticket service. “This decision was intentional… not only because of the amount of people who use the platform but also how it is used.”, reports USA Today. This news could lead the way for Venmo to compete directly with Ethereum as a platform.

Venmo and others like Cash App have the convenience factor. It is easy to add a debit card and pay for all kinds of everyday services. However, privacy is a concern. Venmo makes everything public by default with privacy settings buried deep within the controls. Something much of the public does not seem to care about.

According to Wikipedia, “Apple Pay is a mobile payment and digital wallet service by Apple Inc. that allows users to make payments in person, in iOS apps, and on the web using Safari. It is supported on the iPhone, Apple Watch, iPad, and Mac.” Unlike the other payment apps, it is tied directly into the mobile ecosystem. Allowing one payment method for lawn service, groceries. and in-app purchases.

Google Pay is a similar service for Android users. Most surprising is the news that both Google and Apple are supporting cryptocurrencies for payments. Entrepreneur explains, “Google and Apple customers can now add the Coinbase Card to their mobile payment options, meaning that goods and services can be purchased through smartphones using cryptocurrencies such as Bitcoin, Ethereum, Dogecoin and others.”

Is this the knockout punch for other payment services? Probably not considering Venmo is moving toward a platform and crypto is finally offered for mainstream purchases. Begging the question of which is most important, the currency or the network?

In Revelation 13:17 the Bible reads, “And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.” The Christian website Got Questions elaborates, “this will be a universal system of control where everyone, rich and poor, great and small, will bear the mark on their hand or forehead.” Giving the idea that some kind of technology will directly link people into a single payment network. Maybe even a single currency.

Apple, Google, Ethereum, and Venmo are after the network side of the equation. The problem is that Apple and Google are limited to a single platform (mostly) while Venmo is based on traditional banking. Ethereum could be a winner but the network side needs work before everyday transactions can occur. Instead, the winner will most likely be something new like how Google took over the search space from Yahoo.

Source: https://toddmoses.medium.com/the-battle-for-one-world-payments-75f0bb71a5f4?source=rss——-8—————–cryptocurrency