Uber CEO Dara Khosrowashahi spoke in a recent TV interview about the potential of integrating Bitcoin and other cryptocurrencies into the ride-hailing platform as a payment method. While accepting that the discussions on the subject continue, a final decision has not been taken yet. Here are the details…
Uber CEO gives good news for Bitcoin
Khosrowashahi takes a positive view of the adoption of Bitcoin, noting that this may be a possibility in the future when it “becomes environmentally friendly and cheaper to exchange”. This statement highlights Uber’s cautious approach to cryptocurrencies adoption considering the current environmental impact and transaction costs associated with these cryptoassets. A major concern surrounding Bitcoin is energy consumption during transactions. Critics often point out that the mining and transaction verification process in Blockchain requires a significant amount of computational power, resulting in high energy consumption. However, it is argued that new technologies such as the Bitcoin Lightning Network significantly increase the energy efficiency of Bitcoin transactions.
Uber CEO says they will accept bitcoin once it becomes environmentally friendly and cheaper to exchange
does he know bitcoin lightning transactions are 𝟏𝟑𝟔 𝐭𝐢𝐦𝐞𝐬 more energy efficient than Visa transactions
and fees are a fraction of a penny while Visa charges 2.5% per… pic.twitter.com/cGClqbOp17
— Crypto Tea (@CryptoTea_) August 1, 2023
Bitcoin Lightning transactions are said to be 136 times more energy efficient than traditional Visa transactions. Additionally, while the fees associated with Bitcoin Lightning Network payments are only a fraction of a penny, Visa typically charges around 2.5% per transaction. Moreover, even without the Lightning Network, Bitcoin transactions are relatively energy efficient than the traditional banking system. However, Khosrowashahi’s statements suggest that he may not be fully aware of recent developments in Bitcoin technology and its potential for sustainable and cost-effective transactions.
Can cryptocurrencies be used for payments?
While acknowledging the value of some cryptocurrencies, primarily Bitcoin, as a store of value, the Uber CEO has expressed concerns about their practicality for day-to-day transactions. High costs and environmental impact are key factors hindering their wider use in payment scenarios. Khosrowashahi’s emphasis on seeking more cost-effective and environmentally friendly solutions reflects Uber’s commitment to responsible business practices. The company’s involvement in monitoring the evolution of cryptocurrency technology demonstrates its willingness to explore opportunities for smoother and more sustainable transactions.
Critics labeled Khosrowashahi as “lazy” and lacking proper research for not considering current energy-efficient solutions in the cryptocurrency space. However, it is crucial to recognize that as the CEO of a leading global company, he must carefully weigh the potential benefits and drawbacks of using cryptocurrencies as a payment method. Striking the right balance between innovation, sustainability and customer satisfaction is undoubtedly a challenging task.
