Main navigation

Crypto Could Kill Credit Cards: Y Combinator Cofounder Paul Graham

News
Fri, 12/11/2020 - 16:06
article image
Alex Dovbnya
Legendary venture capitalist Paul Graham believes crypto poses an existential threat to credit cards
Crypto Could Kill Credit Cards: Y Combinator Cofounder Paul Graham
Cover image via paulgraham.com
Read U.TODAY on
Google News

Paul Graham, the cofounder of seed money startup accelerator Y Combinator, believes that the future of credit card companies is grim if they continue to blackball customers, according to his latest tweet.

One of the most successful venture capitalists of all time believes this cherry-picking will push the general public towards cryptocurrencies.

They, Graham says, could "ultimately kill" credit cards:

Possible future scenario: Credit card companies become increasingly picky about who they'll process transactions for, and this becomes the thing that tips the general public into using cryptocurrency in transactions, ultimately killing credit cards.

Graham's comment comes after Mastercard and Visa—the two companies that are responsible for a cumulative 90 percent of the credit and debit card market—decided to cut off Pornhub earlier this week.

The tenth most popular website in the world, with over 3.3 billion monthly visits, described the move as "crushing" for its models.

This news is crushing for the hundreds of thousands of models who rely on our platform for their livelihoods.

Last November, PayPal also decided to ditch Pornhub. This September, however, the Montreal-based video company made a timely decision to start accepting Bitcoin and Litecoin.

Related
PayPal CEO Says Now Is the Time for Cryptocurrencies to Go Mainstream

Bitcoin has Visa in its crosshairs

As reported by U.Today, Bitcoin surpassed the market cap of Mastercard in late November during the run-up to its new all-time high.

At the peak of the previous bull market, the number one cryptocurrency also managed to trump Visa, the largest electronic payment processor, but it is yet to achieve this feat this time around.

Visa
Image by @charliebilello
article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.