Morgan Stanley

Morgan Stanley Believes Bitcoin Acceptance is Shrinking

Investment bank Morgan Stanley recently came out with a report suggesting bitcoin acceptance has dropped to “virtually zero and shrinking.” The report was created by the investment bank’s internal analyst team, which was headed by James E Faucette. 

Also read: BTCC Founder Bobby Lee Says Cryptocurrencies Need Regulation

A Yahoo Financial article elaborated, saying, “According to the bank, last year bitcoin was accepted at five of of the top 500 online merchants. Today, only three of the top 500 merchants accept bitcoin as a form of payment. ” The bank suggested that this fact is striking, because bitcoin has seen such monstrous growth over the last couple of months.

Morgan Stanley’s Three Reasons For Declining Merchant Acceptance

Morgan Stanley provided three reasons why it believes merchant acceptance is shrinking.

They said the first reason is bitcoin’s bull Morgan Stanley Believes Bitcoin Acceptance is Shrinkingmarket nature. The price tends to skyrocket and people want to hold it for the purposes of gaining incredible amounts of wealth. People would rather do this than use it as a currency, said the bank. This provides evidence bitcoin is more of an investment vehicle than a form of currency.

Bitcoin’s scalability problem represents another issue. The analyst team pointed out merchants may not want to accept the cryptocurrency because of fears regarding the scaling debate. All the uncertainty and fear surrounding it has allegedly led to hesitation about bitcoin adoption.

Lastly, the investment bank pointed out the main players in the bitcoin space are not cajoling merchants into adopting the currency. The bank clarified:

The ecosystem has focused more on value speculation rather than the foot leather-eating work of increasing acceptance – way easier to trade speculatively than convince new merchants to accept the cryptocurrency


Bitcoin May be Growing Healthily in Non-Financial Markets and Other Places

It is currently unclear if the Morgan Stanley research included bitcoin merchant adoption worldwide—as well as non-major retailer acceptance—because a July 13 article on titled “Bitcoin Tracker: Mainstream Acceptance On The Rise” declared the exact opposite.Morgan Stanley Believes Bitcoin Acceptance is Shrinking

The article proclaimed, “The digital currency has been restricted to the financial sector, but it’s slowly moving its way into more mainstream uses. One of the main issues that most have had with the digital currency is that because of a lack of a central authority, it can be tough to regulate.”

Pymnts mentioned that many non-financial entities have begun making changes so they can adopt bitcoin. For instance, the article said, Burger King locations in Russia are slated to start accepting the cryptocurrency over the next few weeks. The BBC also reported that a variety of schools, including some Montessori locations, have started taking it. recently covered the Japan bitcoin phenomenon, which suggests that a whopping 260,000 are entering into the bitcoin ecosystem via a mobile application. Kevin Helms elaborated:

Three months after Recruit Lifestyle partnered with Japanese bitcoin exchange Coincheck to enable over 260,000 retail stores to accept bitcoin, the company has finally announced on Monday that its point-of-sale app is now bitcoin-ready. Immediately, a chain of 334 eyeglasses stores using the app announced that it will accept the cryptocurrency starting July 10

Do you believe bitcoin merchant adoption is rising or falling? Let us know in the comments below.

Images via Shutterstock 

Bitcoin is cool, and you know everyone wants in – even the ones who say they don’t. Show the world how cutting-edge you are with a bitcoin T-shirt, hoodie, bag, key-ring, even a Trezor hardware wallet. Shipping all over the world, quality merchandise and, of course, a payment system that makes people say “wow”!

  • Danny Lupinelli

    lol article, maybe Morgan Stanley needs a bitcoin bailout?

  • Mattyoung

    JMP also thinks government should have monopoly control of money and guarantee currency insurance. Jamies real issue with bitcoin is that he will not support a bitcoin money market system as that would mean his dollars are no longer insured. He is relying on the continued ignorance of bitcoiners are remain clueless about how currency works.

    But he cannot rely on bitcoiners ignorance. Eventually a mathematician will explain to bitcoiners that a savings and loans works about the same way a coin exchange works.

    Then, we hope, the wallet makers will discover that wallets are not on the web, the things on the web are called accounts, wallets are in your pocket and securely hold bearer cash.

    After the bitcoiners quit marveling at the wonders of a checksummed spanning tree, they will start thinking about dynamic money flows and pricing, they will have an aha moment. They will discover what side chain really means.

  • Liberty88

    *snifle* (wipes eyes) *snifle*…..


  • Do you honestly think those criminals would say anything positive about bitcoin??? fuck em!

  • Zac Sand

    Another “expert” chimes in…

  • jsw



    Maybe they were the folks (aka geniuses) who consulted with Barnes and Noble about the impact of the internet too..

  • Hobnobber

    Isn’t denial a stage of grief?

  • Riley Lee Hamilton

    they just want th eprice to go down so they can buy more.

    I do too but im not gonna lie about it, so it goes down. I’m also not a wall street crook.

  • Betty

    FUD from a dying obsolete competitor… ignore.

  • Badisse

    Those crooked old farts are so obvious. Bitcoin use is clearly growing overseas and as usual US is slow to catch on but it will have to. Thise scumbags at Morgan Stanley are just trying to discourage their investors from going into Bitcoin at this time. By the time they do, it will be more expensive….I study the market and ignore scum like Morgan Stanley…

    • thobile

      This very same MORGAN STANLEY bank is one of 14 banks that colluded in December 2015 to collapse the SA RAND and fell by more than 17% for their selfish gains and more than 500 billions of rands were lost and because of inflation, prices rocketed and the poorer of the poorest were most hit. Certain bankers have become mafia just for personal gains.

  • Robert Stanley

    I have ambivalent feeling about this article. But more towards the “negative”.
    I still can’t figure out why it was published.