Bitcoin Forum

I had never heard of Webmoney, but it was described on here as the PayPal of Russia. I don't yet fully understand Webmoney's system and how Bitcoin plays into it, but would it make business sense for Paypal to do something similar, aside from doing it just to stay relevant in the future? If so, is it unreasonable to think they would?

No that's not unreasonable at all, they have even openly admitted thinking about adopting bitcoin as well recently.

Bitcoin is a competitor to Paypal.  If they are smart, they are trying to find ways to destroy Bitcoin and/or develop their own competing virtual currency.  Either way, you can bet whatever they do, it is not with Bitcoin's best interest in mind.  That would be my guess anyway.

On the flipside, there is a lot of money to be made off people buying and selling Bitcoin.  Just depends on risk vs reward.  The wrong move could leave Paypal in the same position as the long distance carriers...obsolete.

Wouldn't Bitcoin also be a competitor to Webmoney (again, Webmoney was described to me as the Paypal of Russia, is that incorrect)?

Yes it would make sense.

Especially so if Webmoney posts significantly increased revenue due to bitcoin transactions.  If I were Paypal I'd wait and let Webmoney be the guinea pig.

Click the link in my signature

If their business model is anything like Paypal, then yes it's a direct competitor.  Just because they are doing it, doesn't mean it's a smart move.  Then again, just have to see how the revenue pans out.  Risk vs reward.  If I owned either Paypal or Webmoney, I'd do everything I could to destroy Bitcoin and as fast as I possibly could.  But that's me.   8)

No, its not, their potential competitors would be bitpay & co.

Just for those who have missed the interview with the President of PayPal where he talks in a very positive way about bitcoin and that they are thinking about adopting it as a currency: http://www.bloomberg.com/video/paypal-sees-20-billion-in-mobile-transactions-WlokACTBRterdjHAJGNB6w.html

If you think Bitcoin and Paypal are not competitors....I don't know what to say.  Just wow!

Is that supposed to be an argument?

I disagree that Bitcoin must necessarily be a competitor to Paypal.

Paypal can stand to gain a lot by adopting the Bitcoin infrastructure.

Just to daydream a bit, Paypal's current network probably employs a vast amount of human resources and contracts to keep their payment system runs smoothly. At every level of the company there might be operating costs that might not exist even at all if business was done using Bitcoin.

Maybe Bitcoin can help alleviate some of that cost (termination of old system as they integrate Bitcoin into the company), allowing them to lower their fees, earning higher profit, and gain more customer volumes.

Remember, Paypal itself doesn't necessarily come with a political ideology that pits the company against Bitcoin. Paypal itself can be pretty fluid. Of course right now Paypal is heavily associated with banks and credit card companies. But that may change over time if Paypal sees Bitcoin adoption to be beneficial.

Yep, I agree. Bitpay and all other similar new startup's are the "new" Paypal. These new guys don't have the burden of keeping an old horse running, and can go in any direction they want. Meanwhile Paypal can't just drop their existing system at a moment's notice to pursue Bitcoin.

You guys have to stop thinking within the 'if you aren't for us you are against us" paradigm. Paypal wouldn't have to stop their existing business model or financial system to use Bitcoin.
Neither is it necessary for Bitcoin to replace Government issued fiat money.

Yes I agree with that also. Even if Bitcoin can be a marginal profitable part of Paypal's total operation, you can bet your ass Paypal will get into the game.

Little FAQ about WM https://bitcointalk.org/index.php?topic=210118.0 (https://bitcointalk.org/index.php?topic=210118.0)

The level of education required to refute your statement would take days.  You're too far behind the 8-ball.  
I retract this statement and apologize to you for it.  I could have been much more respectful in my response.

This is wishful thinking at best, from someone who simply wants mass adoption and a big player like Paypal to accept Bitcoin. There could be money to be made but Bitcoin challenges their very revenue model.  Again, anyone who can't clearly see that is truly blinded by the mere thought of Paypal adding Bitcoin.  

You're going to help the masses adopt a payment method, Bitcoin, that is mere pennies in transaction fees as compared to paypal?  That's ludicrous.  They might do it, if there's money to be made and they think Bitcoin is a fad that will die but for the long term...only one can survive.   That's a really big risk and one not worth taking. That's my view anyway. 

you're missing something here...

bitcoin as a currency and bitcoin as a payment system can be seperate.


webmoney has taken the option to assimilate the currency into their system...

bitpay is using the payment system (yes, competitor to paypal)


paypal can follow webmoney's lead or simliar, or, can cry about the idea of the bitcoin payment system being a competitor, or, can work out it's own innovative assimilation solution (EDIT one that could include making use of the lower transaction fees THEMSELVES in order to provide a better, cheaper service to their existing customer base... who they want to keep happy), or, work out it's own version of bitcoin (without the community, following, prior investment or groundwork already laid down).

OR, can stop crying, forget innovation, and try and kill it... which it can't... what do you think is the best solution?


I haven't thought this through in detail so I may have some errors, please correct me if I'm wrong.

The best solution is to kill it, which they absolutely can help do.  Again, mass adoption is the key to Bitcoin's success.  Paypal has the money and the clout to turn businesses away from Bitcoin through grimmie slander campaigns and supporting legislation that is counter to Bitcoin.  But let's assume they wont do that, the next best thing is to just create your own...because crypto is awesome...and take the high road against Bitcoin and continue to slander Bitcoin as a "black market" only currency, that is volatile, slow and simply not fit for serious business.

Now again, they may flat out adopt Bitcoin, but that dosen't make it a smart move.  Only time will tell.

EDIT:  I have stricken my previous statement you quoted and apologized for it.  That was rude.

Paypal could do all that (negative PR campaign against Bitcoin) and yet startups that utilize Bitcoin could still pop-up. That's how I think about it.

Yeah, but they are the minority.  Wouldn't make any difference as it relates to mass adoption.  None of this says that Paypal would actually be successful in these attempts, they are merely possible scenarios.  But it's not hard to see if say, Paypal, eBay, Google and Amazon (who recently snubbed Bitcoin with it's own..whatever that is) were to align against Bitcoin.  All you have to do is scare regular people and mass adoption, at least in the US, is all but dead.  Given the difficulty level there is for even buying bitcoins, now add to that the difficulty in spending them.  Sheesh...that's a hard mountain to overcome.