Bitcoin, the pioneer cryptocurrency that was created to be digital money, is now failing to become a payment method. MARA CEO Fred Thiel, whose Bitcoin mining company holds more than 36,300 BTC, says Bitcoin has missed its chance as a payment method.
He says that stablecoins are now better suited for everyday transactions while Bitcoin’s future lies elsewhere.
Fred Thiel, CEO of Bitcoin miner MARA Holdings, believes Bitcoin is no longer the best option for everyday payments.
Speaking in an interview with Natalie Brunell, Thiel said,
“Bitcoin as a medium of exchange, that strategy is unfortunately, I think, has seen its day go by.”
Meanwhile, he explained that businesses processing thousands of transactions every second cannot afford price swings, even if they are small.
Thiel noted that Bitcoin was originally designed as a digital currency when Satoshi Nakamoto introduced the white paper.
However, he believes the market has changed, with stablecoins becoming a better fit for payments while Bitcoin has evolved into a different type of asset.
According to Thiel, businesses need a payment asset with a stable value.
He said that “Two parties transacting want to know the value of the medium of exchange.”
He noted that if thousands of transactions happen every second, even a small move in Bitcoin’s price can reduce profits, especially when transaction margins are already low.
Because of this, Thiel expects crypto payments, particularly those involving AI applications, to rely mainly on stablecoins instead of Bitcoin.
MARA is also changing its own business strategy. The company is directing more power capacity toward artificial intelligence (AI) data centers, saying AI generates much higher returns than Bitcoin mining.
To support this transition, MARA sold around 20,000 BTC over the past year to reduce nearly $1 billion in convertible debt. Despite those sales, the company still holds 36,303 BTC, making it one of the largest corporate Bitcoin holders.
Although Thiel believes Bitcoin has lost the payments race, he remains confident about its long-term value.
He said, “It remains a great store of value” for people who want to keep assets outside centralized control.
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