Pantera Capital: Bitcoin beats Apple Pay, but will also enhance it

In its monthly letter, Pantera Capital analyzed the merits of the recently launched Apple Pay versus those of Bitcoin. In short, Bitcoin wins. The silver lining for Apple Pay is that Bitcoin will make it better than it would have been if relying solely on the traditional financial system. Following are the key points:

- In general, Apple Pay has several drawbacks: It is only available for the latest iPhone, which will take time to reach customers. New point-of-sale (POS) systems being installed by retailers for next October may not accept it. Shoppers are unlikely to change their payment habits, especially in an environment where so many similar alternative payment options exist.

- EMV (EuroPay, MasterCard, Visa) technology involves a PIN-enabled chip to make credit card transactions more secure. While Apple Pay is capable of providing a similar level of security, some credit cards also allow for "Tap and Pay", not requiring biometric validation.

- Bitcoin's Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and Apple Pay's tokenization make the two similar in securing and encrypting Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

- Bitcoin has several advantages over Apple Pay: (1) It does not involve another intermediary (e.g. credit cards), and (2) It eliminates chargebacks.

- Apple's charging of 15 cents for every $100 to the consumer's bank is considered negligible if it increases business volume.

- The only advantage Apple Pay has over Bitcoin: "Consumers forgo the friction of learning about an admittedly complex technology." Together though, Apple Pay's user interface will alleviate this problem.

- Bitcoin can work with Apple Pay due to: (1) Apple's lifting of its ban on bitcoin transmission apps and (2) the flexibility of Apple Pay's API to allow for bitcoin payment integration.

- Bitcoin will enhance Apple Pay by (1) avoiding the middlemen found with credit cards, (2) avoiding credit card fees, which would have been added to the Apple fees and (3) helping it reach a global audience beyond the US.

Previously speaking with DC Magnates, Glidera CEO David Ripley commented that Apple Pay is unlikely to produce savings in fees.