Mastercard plans to allow its customers to pay directly in cryptocurrencies this year. Specifically, the selected portion of the cryptocurrency, which will most likely be bitcoin (BTC) and etherium (ETH).
Everyone who holds bitcoin, hoping that it is just finding its new unimaginable heights, got a wind in its back earlier this week after Tesla announced that they had invested $ 1.5 billion in that cryptocurrency in January
MasterCard announced on Wednesday the integration of cryptocurrencies into its network later this year. MasterCard actually already offers cryptocurrency cards, but they are the result of partnerships with sellers who convert cryptocurrencies into traditional currencies, after which the transaction takes place
Whatever one thinks of cryptocurrencies, the fact remains that these digital assets are becoming an increasingly important part of the payment world, points out Raj Dhamodharan, head of MasterCard’s digital asset products, in a blog post.
MasterCard is not here to recommend that you start using cryptocurrencies. We are here to allow users, merchants and businesses to move digital assets, traditional or crypto, however they wish, he adds. Dhamodharan, however, says MasterCard will accept only a handful of selected cryptocurrencies, that is, those that meet certain private, security, legal and performance standards. In other words, most so-called altcoins will not be accepted
MasterCard follows PayPal, which last October announced a platform through which cryptocurrencies will be able to be bought, sold and used for payment. Bitcoin is a cryptocurrency that miners use specialized devices, computer miners, and these devices consume a huge amount of electricity - 24 hours a day (if the owner of the same device wants to make any profit). A recent study by scientists from the University of Cambridge found that bitcoin mining consumes a staggering 121.36 tervats of electricity per year, representing higher annual consumption than a country like Argentina. Bitcoin, however, does not exist indefinitely and mining will continue until all 21 million of these digital tokens are exhausted, and there are currently over 18.6 million in circulation.
Experts claim that bitcoin mining is unfavorable for the environment, and Tesla's investment is questionable, given that they are also committed to preserving the environment. Bitcoin is literally counter-efficient. More online mining machines will not help, but will only increase competition with each other.
This means that the energy consumption generated by bitcoin, and thus the production of CO2, is only increasing. It is very bad that all that energy is literally spent on the lottery, points out David Gerard, author of the books “Attack of the 50 Foot Blockchain”. Most of the electricity that powers bitcoin mining comes from coal, Gerard adds, suggesting that a bitcoin mining tax should be introduced as a result.