Bitcoin Forum

After researching it , I think the while "buy Bitcoin on PayPal" is a scam at best , and could be something more sinister at worst. Basically , you cannot withdraw the crypto , which for me means that it isn't crypto at all. But after doing research , I found that you cannot EVEN PAY another person with it - you're simply buying a token that is linked to the Bitcoin price - what is the value of this ?

I believe that this could be an attack on Bitcoin - I discuss this in detail here : https://youtu.be/bApVhoTemGw

To recap :
- You cannot withdraw your Bitcoin
- You cannot Pay anyone ( ironic ) , so it can't even go to another PayPal account
- You dont own the keys

I'm really not sure about what you are telling I think you should cite some from the paypal's official terms and condition or any information beside from that youtube video you have linked, but I agree on the fact that you are not able to have your own private key which is mostly like the blockchain wallet.

ya.ya.yo!

1) Revolut does the same thing IIRC, you can't transfer out the bitcoins (either to someone else or a wallet you own) or to pay something with. Does it mean Revolut is a scam too?

2) The person doesn't own the keys, perhaps but it's the same thing with Coinbase for example, so Coinbase is also a scam?

3) Paying someone with bitcoins: if I'm correct on their press release they said it could be used to pay a merchant, so people will be able to pay someone with (the merchant). The fact you can't do it with a random individual is something else.

The definition of a scam isn't what you describe. We are only at the beginning and the service could very well be improved in the future.

It is too early to say it as scam but i don't think it is scam anyway. I have read Paypal's official news about Bitcoin's acceptance where they said from the beginning of 2021, Members of Paypal account will be able to use their cryptocurrencies as a funding source at Paypal's supported merchants. They can instantly convert their balance into Fiat currencies. So it is on testing situation. You have to wait for full upgrade of Paypal. You can read official press release of Paypal.
Source= https://newsroom.paypal-corp.com/2020-10-21-PayPal-Launches-New-Service-Enabling-Users-to-Buy-Hold-and-Sell-Cryptocurrency

If they allow you to pay another merchant eventually, then I stand to be correct - that would be a good thing ( I'm assuming that there will be some sort of settlement between the two parties in Bitcoin ). This could then actually be a way of scaling Bitcoin and could be good for Bitcoin overall. But I would still like to see the option to withdraw.

I really don't think it's a scam, I believe it's a first trial step for PayPal and if they see some profit making opportunity they will take it and some more features for users will come later.

We really need to stop using the "scam" word as a sort of synonym to "bad service"; because obviously there's a HUGE difference between the two.

PayPal's cryptocurrency-related services are definitely very very limited, but it has been the same with Cash App in the past. The likeliness of what's going to happen is, it's a slow rolling out of features; because I'm pretty sure PayPal is totally aware that bitcoin is really hot right now, and it's smart for them(business wise) to take advantage of this hype and roll out their buy/sell feature asap.

Show me the perfect crypto-related service, so we can discuss how good PayPal is or bad for Bitcoin?

Things are currently set up in this way which does not mean that it will not change in the future, especially if numerous users ask for the possibility of deposit and withdrawal - in other words "give us the same conditions as for fiat". Meanwhile, PP has made it clear that at some point BTC will become a payment option at all points of sale where it is possible to pay with PP - meaning 26 million merchants.

Therefore, the word scam is not appropriate in this case - everyone will have the opportunity to buy BTC, but also to sell that same BTC within PP. From the perspective of the average Joe, who will invest $100 to buy BTC and then sell them for $130, PP will not be a bad option at all - although any custodial wallet is not the right option for storing crypto.

I don’t agree that Paypal is a scam. They’ve been around for a very long while and will not go anywhere. I’ve been using them since 2009. They even don’t want to be left behind, so they are accepting cryptocurrency deposits. However, what I didn’t like about them is that when our balance gets bigger, they can freeze our accounts without warning and it’s a hassle for us to provide additional documents when this incident happen. This is why I never use them anymore, but I choose to go with Bitcoin and cryptocurrencies for sending and receiving payments.

It’s certainly not ideal from a purist’s point of view, but we are going to see a surge in custodial institutions selling crypto. Many newcomers will have no idea that they could/should custody their crypto themselves, and a large portion of newcomers will not want to get involved with the hassle it entails. That is something we need to get used to, and whilst most around here will certainly vouch for looking after their own crypto, and frown upon those who don’t, the world is slightly larger than the forum, and most people out there are a lot less skilled that we may think.

Having said that, Paypal’s solution is not Token based. Paypal uses Paxos’ Crypto Brokerage API-based solution (see https://www.paxos.com/crypto-brokerage/) to deal with crypto holding and management, and interfaces to operate and display balances stored with Paxos.

I’d personally love to see the technical details of the TX flow through the different corporations and interfaces (Paypal<->Paxos<->ItBit, or whatever other topology gets deployed), but it’s not a token based implementation, nor a scam. Just a commodity solution that’s fine for many, not so much for others.

More fractional reserve banking is just what we need.

This is how they are going to FIATize crypto. Soon nobody will give a damn about bitcoin's limited supply.

Well, they offer us a bad service, but it does not mean they are trying to scam us. Adding crypto to a fiat payment gate is a hard task and I think they try to improve this step by step. Just wait and see. If they really want to jump in this industry, they have to take it serious.

Personally, it is annoying me that you can not make any withdraw of your coin. You can only hold your bitcoin in your account without having any other actions but to buy an sell. And Paypal is not my option if I want to buy bitcoin. There are other exchanges better than paypal.

Perhaps calling it "fraud" is something that is inappropriate to say the least. Maybe, as of now, they are disappointing in terms of the fundamental tenet of bitcoin or cryptocurrency in general but it doesn't mean that Paypal will going to be stagnant for a long period of time of being unable to withdraw/send bitcoin to whatever crypto wallet they want to send or receive to.

It is not a bad thing though since Paypal will actually help introduce crypto for newbies or for an average Joe who doesn't have any technical background when it comes to bitcoin.

I don't believe Paypal's bitcoin is a scam. They just started offering support to bitcoin. We should see major service improvement as the day goes bye.

You cannot expect great things from PayPal if you know their history. Their customer service is average and their taxes on payments are a joke sometimes. Paypal accepting BTC out of the blue stunned me, but I never expected a big boost to BTC adoption because of it.

However, I wouldn't necessarily call it a scam or anything. It's just an adoption boost with restrictions as expected from PayPal which is still a win for BTC in the long term.

We'll have to wait and see.
PayPal is working indeed with IOUs now (like Revolut does and I've didn't see such loud complains). But they have plans to connect with an exchange service and then I think that proper deposits and withdrawals will be possible.
However, PayPal doesn't seem to intend to ever use actual Bitcoin. But as long as a third party will do that on behalf of PayPal it should be fine, I think. If they won't do this even though a third party, then yes, we'll have a problem.

I agree to a point, but there is a limit.  If it transpires PayPal are operating fractional reserve, then I'd be inclined to call it a scam.  They'd be selling something that doesn't necessarily exist.  Those who understand how fiat works begrudgingly accept the premise that fiat works that way.  But it's wholly incorrect to accept the practice of Bitcoin IOUs which literally cannot be spent on the blockchain.  That would be a step too far and is 100% a scam.  Best we reserve judgement until their third party custodian, Paxos, provide evidence of full reserve.



But perhaps we should await some proof before we grab the pitchforks?  I'm suspicious too, but facts are better to act upon.

PayPal has made it clear that they will allow withdrawals and payments using Bitcoin, once the testing phase is over. We can expect this by mid-2021. But it is true that they don't allow us to own the private keys. But that is the case with 99% of the cryptocurrency exchanges. If you are using any of these cryptocurrency exchanges, then I don't think that you should be having an issue with PayPal.

If you buy Bitcoin with Paypal, you don't own anything. You don't own a Bitcoin, you don't own a private key, you don't own an address. What you have is not in your possession. What you have is not yours because you cannot send it or pay it to buy something. This is very shady. This looks like a strange asset which is surely not Bitcoin.

Oh deal with it. Plenty of people "own" their bitcoin on similar platforms, with far less standing between them and scamming. Least Paypal has a bit license, not notoriously difficult to get for nothing.

If ppl liked bitcoin that much as a result of PP exposure and then decide they want the real thing, mission accomplished.

The rates in PayPal via trading platforms are often too good to be true. Then a light should come on that things are not right. Paypal is also known for allowing people to file a complaint. And then they can claim back their madness for up to six months or a year, for example. and then you sent the bitcoins, you lost them. I am not saying that everyone works like this, but there are certainly a large group of scammers who use this method via Paypal with rates that are too high.

Yeah, people like to throw the word "scam" around without any full knowledge of what they say, it is no longer news that PayPal do not support the withdrawal of btc from the wallet, isn't it same thing with exchanges, many people including me have some (if not all ) of their assets in one exchange or the other without owning the keys to the wallet,
Now you mention about revolut, i haven't use them before so i can't say much about what you say, but if that is the case, i don't see people calling them out or tagging them as scam for not letting users to be able to transfer btc to other wallet or withdraw, i believe the thing with PayPal will get better with time, who don't like their service need not use it.

As of now it's the same as the BTC you get from RobinHood.
Can't withdraw it, can't send it.
But you can buy it at "X" and if it goes up sell it at "Y".

And that's it.

Since they are both US regulated businesses I am assuming they are buying and selling BTC on the open market and just making some money through the spread.
If they are not actually acquiring the BTC that would be a different story. But, I think they are. I also think it's such a small amount of BTC being bought and sold through both of them that it does not even make a difference in price. Nobody is going to wake up and buy 15000BTC through either place. There are better services with better pricing.

-Dave

I'm quite surprised to see so much PayPal support coming from older members over here. One particular thing I do not like is that I have only heard stuff like "you don't own the keys" and "you can't withdraw". The keys part seems kinda fine to me - the service has to hold your keys under custody because otherwise if you're suspect and the gov wants your money to be seized, PayPal should force your funds under seizure for suspicion, if that makes sense. On the other hand though, they could've simply made it possible to hold and use your BTC as a non-custodial wallet and, if you wanted to, to allow you to also sell it to them for fiat.

But is the "Bitcoin" being sold on PayPal the real thing or is it just a coin linked to its price? Because if the latter is what they're selling, then they're literally selling you fake Bitcoin under the real thing's name. I wouldn't mind if the pegged coin was being sold if the name would've warned you about it.

Moreover, and the worst part of everything, is that selling the fake thing under the real name (so basically misleading) means they can generate as many BTC as they like, artificially inflating or deflating the market to their liking.

Damn, I just had made a comment on this. Even if they would allow withdraw, it would be a total disaster once a lot of users at once tried to withdraw their BTC. Well, this is really a total shit system.

not understanding your point of view clearly...but if exactly happens this then it's is not good for bitcoin and block-chain system...

for me too early to conclude PayPal is scam. Why? Good reputation matters most than just to earn money from crypto or PayPal's costumers. PayPal will not allow to put their millions of supporters in danger position. They understand how everybody's wishing the best for PayPal besides fiat transaction. The world is getting to super advance means of transaction to the point some develop a cashless method and adopt cryptocurrency. PayPal is a huge company, so, normally they will integrate whatever the necessary just for their costumers. PayPal will not put themselves in a dangerous game like "scam word."

I don't think it's a scam. This is Bitcoin, where paypal will have a little trouble finding and ensuring the identity of the sender and receiver bitcoin addresses clearly.

So as a trusted platform for a long time, it won't be that easy to activate the deposit/withdrawal/or send of bitcoin between users feature without adjusting the regulations of each country supported by PayPal and several other considerations. Paypal will be careful with this.

Which they will never do, and even if they did, we have no way of verifying. Paxos supply an address with 1,000 BTC in it and say "This belongs to PayPal." How can we verify that Paxos isn't running a fractional reserve and that 1,000 BTC also "belongs" to a few dozen of their own customers as well? How can we verify that PayPal haven't actually sold 10,000 BTC to their customers, yet are only holding 1,000 BTC on Paxos? The whole system is just layers upon layers of blind trust.

Can you provide a link please? I haven't read anything along these lines.

Whatever happened to "Don't trust. Verify."? The whole point of bitcoin is to not rely on trusted third parties. All you are buying through PayPal is exposure to bitcoin's price - you are not buying, and do not own, any bitcoin.

Are you sure describing this as a scam? Well, I think we need to have a similar perception and description of what meant by scam here.

I read this from PayPal
Taken from PayPal Cryptocurrency Terms and Conditions (https://www.paypal.com/us/webapps/mpp/ua/cryptocurrencies-tnc)

It is written "currently"
Does it mean that someday it may change and will be changed? Expect they said: You never, it means forever.
This is still at the beginning of PayPal concerning crypto. SO, let them work and also develop. I believe that PayPal will always make certain evaluations and review about how it works and develop.

So, just too early to say that Bitcoin in PayPal is a scam.

Unless PayPal's customers revolt against the way they're functioning, it's never going to change. All they need is enough volume to keep it all going. If that ever changes (and I doubt it will), they would probably just back out of the crypto business or find yet another way to do their tricks.

The way they've begun working with cryptos tells, for me, everything about their intentions.

Paypal is a big company and I don't it will scam it's customers that easily. Besides that we should not judge a company like Paypal that soon.
We should wait until the service announced is ready to be implemented in production. May be there are future developments planned which will allow users to deposit/withdraw bitcoins.
To be honest, describing Paypal as a scam is too harsh on them for now.

This is not about the scamming issue(assuming that they are not capable of doing it) but this all about unclear services they offered.
You can deposit in Bitcoin but can't withdraw it, but you can spend it buying other stuff which is a trick that we ever don't like it. This PayPal had no longer be a part of crypot if this is only a thing they can do. That was not people had been expecting for PayPal but just like to see the same with other exchangers.

This is a way about that traders will just ignore Paypal.

It does sound scam to me.

If they get your money and you don't get in return what does that mean?  Just because its Paypal, doesn't mean everything right. Banks had been doing all kinds of laundering themselves but it often looks legit but closely looking into what they are doing is exactly laundering.
But let's see what they could come up with because right now it only appears like they are collecting data of their users who want to buy BTC.

For discussion may I ask, what's the use of the bitcoins if you are unable to withdraw or unable to send it to another person? While PayPal is a global company they must have some reasons for not allowing these actions!

Probably they are trying to become a centralized exchange service where you can buy bitcoin and sell it to paypal itself. Centralization at its best!

You can neither deposit nor withdraw bitcoin from PayPal.

You cannot spend bitcoin using PayPal. If you want to buy something with your bitcoin, then you must first sell that bitcoin back to PayPal and then buy the item using fiat. The only thing you can do with the "bitcoin" you have bought on PayPal is sell it back to PayPal.

Bitcoin is their competition. If bitcoin payments become widespread online, then the need for PayPal greatly diminishes, and so too does their profit. Make no mistake - they are not doing this because of some desire to aid bitcoin adoption or to make bitcoin more accessible to more people. They are doing it for one reason only, and that is to make profit from the high fees that they will charge. They are deliberately doing it in a way which requires the least amount of effort and investment from them, and also does not allow the customer to actually use bitcoin or increase adoption.

This is what I am looking for.
People tend to use scam so much even if it is just a bad service.
I haven't use or read the TOS of Paypal regarding to crypto or Bitcoin but I know that one thing OP tells is true if we use them as Bitcoin wallet we wouldn't own or hold our own private key.
And I think it is only the beginning they would improve their service in the future (Hoping for those who would use their service as a crypto wallet).

with all that you have said this is the only one that is correct . that sounds funny when paypal introduce crypto for nothing .

paypal are also going to be a clown for doing that . what they do they want,  to hype cryptos only ? but that is if there will be people that will buy crypto for nothing , what are they going to do with that . decoration on thier paypal accounts ?  of course all of this is a lie and we all arent convinced mate . sorry

We cannot withdraw bitcoin because it only exists in the Paypal system. That would be fine because the Bitcoin we own on Paypal is safe and guaranteed by Paypal. What's so bad about that I still see out there that there are a lot of people who do not carefully manage bitcoin and either let the hackers take it away forever or they forget their private keys. Bitcoin's value comes from circulation, and I'm happy that Paypal accepts Bitcoin.

Paypal Scam? very funny, they can't be a scam,
everyone knows that Paypal is the world's largest digital wallet platform,
especially now that they are trying new things, they are unlikely to be a fraud.

We shouldn't be surprise some users might spread baseless speculation about it, it's inevitable. I don't think a big company like Paypal would do something like that to destroy their built reputation.

it's just another way for the masses to acquire bitcoin. and it's one of the best, something that was on discussion since many years.
for sure it can't be defined a scam, and as private company they can choose which type of service provide to their customers.

Paypal's rules and regulations protect any of their users from being part of or being scammed.

What they are doing is bending the rules in their favor when it comes to the traditional ways of handling bitcoin and other cryptocurrencies.
They know how handle money and fiat and are just putting these same influences towards this new endeavour of theirs.

Nothing more.

wait, you said research? Have your research procedures met all the indicators for conducting research? what kind of research did you do? quantitative? or qualitative? or what? You must explain in detail, so as not to lead to biased conclusions. and how long did you do your research? Don't be silly, mate. I will not deny you if your research is presented factually, and applies globally, not just in your own environment.
speculate, but accompanied by credible and credible evidence.
how can we trust your research.
assumptions are more correct for you, not research. :)

I think users need to read the TOS first before buying any crypto currency in PayPal


Means you can only buy and sell crypto asset as investment ,but you can't transfer or send it to other wallet . You need to convert again to USD if you want to widraw .

I have not tried, I logon to my paypal account to actually see what is in there but see nothing in the interface linking to BTC.

Since you guys mentioned that we can't withdraw the BTC, it only means it's just going to be on their platform. It wouldn't affect the supply of BTC but will have a real price of BTC. It would really be good if they just turn PayPal into an exchange but allowing us to send USD to another account.

It isn't available for everyone yet. As far as I know, it's only available in the United States and a few other countries.

If you mean "affect the supply" by taking some bitcoin out of circulation after buying, then it still has an effect since you're pretty much buying real bitcoin through Paxos.

This is why reading the terms and condition is a must with these companies  ::) you cannot do any much if you bought in paypal and suddenly don't want it anymore, once you agreed to the said terms and agreement you'll be caught in disappointment and regret. I thought paypal is doing a good job in integrating cryptocurrencies *facepalm* turns out they are defeating the very essence of it  :'(

Have you read the terms of service as a whole and understand it comprehensively before expressing your opinion?
it clearly mentions how PayPal approaches bitcoin today and in 2021. Well, this is not perfect or good enough at the moment, the most important thing for the current adoption of PayPal is the large number of users and merchants who can accept Bitcoin payments even though indirectly which the value converted to fiat through paxos. Paypal will improve its service toward crypto as time goes on, hopefully will enable the user to withdraw bitcoin.

First of all thanks for the video, it explains very well the issue with Paypal, i would not call them scammers for this but they limitations really sucks.

You can only buy, hold and sell bitcoins... The fact that you can't spend the bitcoins or dump your privatekey shows us how a centralized project deals with a descentralized one.

PayPal's BTC  a scam?
No!
Folks seem to forget that PayPal is a payment provider geared to servicing merchants as an alternative to merchants having to work deals with the credit card companies. It is not a bank or exchange.

When PP first started consumers had to load their PP account with fiat, then they could use that reserve to pay for items on eBay and other places accepting PayPal. AFAIK, at least in the beginning consumers could not 'cash out' their PP account after loading it with fiat but of course merchants can - after all, it is a payment processing service.

PayPals foray into using crypto is exactly the same thing. You CAN will be able to spend your crypto stored there starting early 2021 and the only limitation is that it has to be spent at merchants who are in the PayPal network. All they have done is now make it easy for merchants to accept crypto as well as fiat.

edit: correct statement that currently you are not able to spend at merchants.

Provide substance with your claim for it to be more acceptable. PayPal has reputation for being a large network, why will it ruin that reputation earned through years of existence, in an instant. For sure it is earning more profit in other transactions than its adoption of this technology. And that I think is enough to tell it won't make a risky move. It's adoptation is viewed as something positive for this industry due to its influence which may trigger mass adoptation in a positive point of view. But we are not required to use it. It will be an option for those who are not that familiar with crypto exchanges to invest in cryptos.

That's not what they've done at all. Have a read of their Terms and Conditions, particularly the following quote:


You cannot spend your crypto held by PayPal at any merchant, whether they are in the PayPal network or not. The only way to "spend" your crypto held by PayPal is to first sell it back to PayPal, and then spend the fiat you receive for it at a merchant as you usually would. They are not making it easy or even possible for merchants to accept crypto. Merchants who accept PayPal will continue to only accept fiat through PayPal, and there is no way to use PayPal to pay a merchant with any crypto, whether it is held by PayPal or held in your own wallet.

You are not buying bitcoin when you buy from PayPal. You are only buying exposure to bitcoin's price.

You don't hold anything. As long as you only have the ability to purchase and/or sell it, it's exactly like me selling you a paper with "Bitcoin" written on it for $16k, telling you that's your coin. It doesn't work that way. I highly suspect their Bitcoin is not the Bitcoin we know.

I have one question I think is quite important: why be in such a hurry and push this so-called "Bitcoin adoption" without the most essential features such as withdrawing or sending when you have had an issue as a corporation with Bitcoin for many years straight? Why not just delay it for one more month or two and make all these other features available as well?

I can answer this very easily: because when there's no demand for it, you don't need to make it available so it's in your advantage. So why put everything out there for your users straight from the start when you could start from the bottom and only make available the most-requested features instead?

Keyword is CURRENTLY. I corrected that in my post
As I recall their announcement stated that it WILL become available for payments within the PP network of merchants in early 2021.

So yes, until then folks loading their PP account are exposed to a chance of their deposited coin being worth less once they are able to spend it. OR, if BTC value continues to rise it will be worth more...

It is not a scam. PayPal is an established company and its adoption of crypto is one big thing for the community. Give it time until they have furnished all the rules and service that they've just launched. There will be future changes for them because they are just starting out.
Once they have settled those limitations that they have, we may see them improve a little by little.

It's an attempt by PayPal to get you or any user to keep more money "on account" there, tied in with something novel like Bitcoin. The more money you have on account the more likely you are to use it to pay for things using their service (for which they can charge fees)...even more so if that money on account has gone up because it was tagged to some Bitcoin-pegged investment.

I haven't seen any of PayPal's marketing or PR on this...is it a bait and switch? Did they promise to be able to buy bitcoin specifically?

Here's an article summarizing their offer: https://decrypt.co/43158/how-to-buy-bitcoin-with-paypal-2020-update (https://decrypt.co/43158/how-to-buy-bitcoin-with-paypal-2020-update)

The fees might not be worth the effort, on top of the illiquidity of the PayPal wallet. But this kind of press is good press, because it reinforces with a broader audience that bitcoin isn't fringe, bitcoin isn't a fad, bitcoin is real and accepted...and that alone will drive some people to (finally) get involved in bitcoin.

Scam acussation is kinda deep and it will be good if you can provide a solid evidence agaist your claim aside from what you have stated as PayPal has been operating for a long period of time already and has a very good reputation so I am not so sure if they will just throw away their reputation by adopting bitcoin in their platform and scam their users.

There must be misunderstanding in your side, it will be good if you will read first their terms before posting something like this as I am sure that all of your concerns can be answered there.

for long time crypto users, definitely they will not do the buy and sell of btc on their platform. but for those newbies or previously noncrypto users, this will be a good introduction to them. but once they learn more about crypto or btc, i definitely can say, they will not use paypal for other crypto related transactions.
 so for me, this move from paypal is a win-win situation to all. people will come to know about crypto and eventually, they will go to a better platform that will cater best their needs. so what we  can get from this paypal adopting crypto in their system, will be more crypto users which is good for crypto community
this will also remove some hesitations of noncrypto users that btc is a fraud or scam. but saying paypal's btc is a scam, is another story. the OP should understand more what he's saying here because he's misleading the idea of paypal using btc in their platform

You could say that the service they offer is not a very good service or crypto users are not satisfied with such a service. But somehow the word scam does not go with PayPal, it is completely incompatible. Paypal just wants to offer a service to crypto users and it is still in the testing phase, Hopefully in the future they will improve it further and reduce restrictions. It is really a great initiative and will have a positive impact on the crypto market.

They wouldn't accept any transfer inside or outside their wallet for security reasons. They treat it as investment but also purchaces using Bitcoin can be made from their network of merchants who are connected to paypal.
With this limitation of not allowing withdrawals it makes Bitcoin unusable as far as I'm concerned. Probably an attempt to tame it.

It means nothing to me to buy Bitcoin using Paypal. Paypal will always be a payments processor for fiat and as you don't even own this fiat as it can be taken away anytime Paypal wants. They did the same with Bitcoin and those that buy using paypal will not actually own any Bitcoin.

I somewhat agree and won't be using their service.

For us, bitcoiners with a little experience, there's no point buying coins that you can't move to your own wallet using PayPal, but this service is not for us and is not a scam.
It's made for PayPal users who don't have accounts on crypto exchanges yet and would never have.
Now they can get Bitcoins without doing any additional work and getting verified on some new platform.

Paypal is a big platform with lots of users, there's no way they're doing a scam. What you explain in the opening post is not
an indication of a scam, but Paypal service is not optimal regarding Bitcoin. They have just announced that they have accepted
Bitcoin, so give them time to accept Bitcoin slowly. For now they may only accept purchases, sales and holding only on their
platform. But in the future Paypal will definitely change the rules, so give them some time.

There are a lot of users on PayPal, so I doubt this platform is a scam. If you experience problems on that website, then calling PayPal as a scam is not good. Issues are natural and bare for any platform as they are only new in the world of crypto. It could be resolved by telling the customer service about your problem with them.

You brought up good points there dude. However, there is a huge market for PayPal and so does traders who would think it would become a platform to exchange cryptos to their PayPal and from there, to their Bank Accounts. This is how it will be perceived. I wouldn't call it a scam as someone who'd read their entire terms and conditions will know what the platform will offer. I'm eager to see the threads "Help! Got Scammed by PayPal" popping up in the scam accusation section.

There are lots of people who want exposure to the price of bitcoin but are not interested in having custody of the asset. They don't want to have to worry about hacks. Their only motivation is to gain more profit in fiat and are using bitcoin as an instrument to achieve that goal. There is sufficient demand for custodial bitcoin so it is not really a scam. It is simply an investment where your only risk is the price going down.

I read about it but I do not think a giant company like Paypal will want to take peoples bitcoin by telling them to deposit it on their system without giving them the opportunity to withdraw it. The situation might be because they are still in the early testing phase which means continuous development of their platform to enable crypto to be fully used is required. The fact that paypal will run a centralized bitcoin exchange does not make them a scam. There are many centralized platforms and they have their pros

I see a lot of baseless opposition directed at PayPal. They are not forcing anyone to use their services. You can ignore them, if you are not interested. And before shouting at PayPal, claiming that it is a scam, I would like to draw your attention to the hundreds of cryptocurrency exchanges which closed down all of a sudden, running the lives of large number of users. At least we are sure that the same won't happen with PayPal, since the deposits are insured.

paypal is good for mass adoption

Most hate directed at paypal isn't because what they're doing is scammy in nature but due to other past experience fron the platform. Paypal adventuring into the crypto industry might just be the best time that happened to bitcoin in 2020 excluding the halving of block reward.

Paypal isn't a scam and the services they're offering isn't quite different from what other platforms are offering. With time I believe they (paypal) will bring in more utilities for their customers in regards to providing additional services to what they're currently offering.

Let's just give them time, you don't expect they just jump right into the industry and not take some time to test easily service than complicated ones like offering a wallet services for users to hold their coins.

I am not a big fan of PayPal, but in this case I have to agree with your post. As per the statement from PayPal, right now they are in a testing phase. Full services for cryptocurrency users may be available only by mid 2021, and until then the functionalities may be restricted. At least when compared to the current bunch of cryptocurrency exchanges, the services being offered by PayPal seems to be better. 

While all these points maybe true there is no doubt that it has increased thr amount of people owning Bitcoin. Just read in another thread that it has reached 85% binance volume in a month. Let's hope they implement these features soon.

I think the bonding is too young to be criticize and instead of making thread here and there why not directly address the involving company so things will be settle in right manner because the way we spread things like this?
it sounds like FUD again and not supporting this progress both in Crypto and PayPal users.Yeah there are something to be corrected but Don't addressed as scam because we have no proof of this as valid.
but it is also good that there are community member that concern about their co crypto users.

Nah, it's not a scam. It is how it is supposed to work. They already told us that you won't be able to send the coins to someone else or any other external wallet. All you can do is buy bitcoin from paypal, sell it back or hold it. You can also spend your coins buying from sites that accept paypal as payment option.
So how is this a scam? It is not like they are stealing from you or anything. I know its a shitty way to own bitcoin (you don't even own those since you don't have access to the keys) but don't go screaming scam if they aren't.

PayPal is far from being a scam; it is a reputable company that revolutionized online payment systems and gave us the ability to send and receive payments in a very convenient manner. We can't deny that. Bitcoin, on the other hand, has also revolutionized the way of making transactions, and it doesn't need any company because it exists outside any centralized systems. Bitcoin poses a threat to such companies as Paypal; it is their direct competitor that has many interesting characteristics and therefore attracts more and more people, companies, institutional investors, and even governments. Paypal decided not to fight it but adopt it in a form that doesn't contradict PayPal policies. PayPal version of bitcoin is a perfect solution for those who don't need bitcoin per se but who are eager for the profits bitcoin can give in terms of the dollar or any other national currency. In other words, PayPal's bitcoin is not a scam, but bullshit.

Don’t confuse support with some other things, because it’s not the same to say that the PP thing isn’t scam - but no one who understands what Bitcoin is will say that PP (at least at this point) gives its users a good crypto service. It is logical that if someone buys something in that case they have the right to fully dispose of their property - and when the service is available globally, maybe PP will at least allow the withdrawal of BTC. This would prove that they actually have real BTC in their possession and not to sell some virtual BTC.

On the other hand, I am surprised that many members of the forum think that the adaptation of BTC to society can pass without companies such as PP, banks, various funds and all other institutions. I look at this situation more from the perspective of a very good promotion of Bitcoin through the media, and also the fact that each of the 346 million PP users will find out about BTC. Each of them will be able to explore what BTC really is, so if they don't like the service provided by PP - they will register on some crypto exchange and buy BTC in the right way.

I understand your thoughts about all of these points you mentioned in your post. May be some your statements are a little bit exaggerated, because scam is very specific and with a narrower concept, comparing with the meaning that people imagine to themselves. But the sense of the Bitcoin on the PayPal wallet personally I do not see at all. What is the purpose for a person from it when the person can not manage his assets on his or her own view.

yes you are right, it's not good we say something with the word '' SCAM '' we have to make sure everything is right, this can create slander which is very bad for bitcoin and paypal. I think paypal just needs time to fix this problem, and in the end we will all be able to buy bitcoin or sell it on paypal. I hope we all don't immediately think about the negative if a problem occurs, we better be careful and discuss the problem in order to get clarity and a solution to the problem.

I absolutely agree with you, the word "scam" is far from PayPal and it's a shame to use these words together. It looks like PP seems to be a scammy company, similar of HYIP.

True story is that PayPal hasn't fully implemented bitcoin and cryptocurrencies into it's system. It's like a beta version at the moment, available only in the USA. At the moment, there are only these options available and it was clearly stated in articles and interviews that in 2021 they'll fully implement crypto and it's related services, so who to blame and why? At the moment all you can do is to hold virtual bitcoin and buy/sell it any time.

talking about paypal scam of course it's nonsense, paypal will not be a scammer,
do you remember when paypal announced that Bitcoin was accepted on paypal ?,
yes, everyone is happy, paypal is not a stupid platform.

Not with stupidity matters but reliability. PayPal is known as the largest network regarding online transactions and it just adopted this technology as a third party network. Fees are expected to be higher because there will be percentage for the network in every transaction but will definitely won't destroy its reputation to the masses. It is obvious that they made such action for profit purposes but to pull down their name will be a total loss for this network. We are assured with this network, but it is just an alternative to crypto exchanges. If you don't trust them with your transactions, then let it be, but to a use them of fraud is something not to be tolerated.

They have not started offering such services where I live. From the news I saw they are starting with the United States, and in 2021 they will carry the crypto services over to some countries.

So, I can’t tell if what you’re saying here is true or not, but right from time when this news of PayPal offering crypto was announced I kept asking this particular as to how it’s going to function, whether people will be able to send out the cryptocurrencies from their wallet to another wallet and nobody gave me the answer. If what you’re saying here is right, then buying Bitcoin from PayPal wouldn’t make any sense if you are not going to be holding actual Bitcoin that you can send out.

You true with PayPal bitcoin is scam because we can't withdraw our bitcoin to wallet and only available for buying and selling trough PayPal, just happen right now with many people have buy many bitcoin with PayPal but never could not sell their bitcoin until now, be quit with your balance and keep safety by buying directly with local exchange market than you buy with PayPal because you will not available for withdraw later, maybe you can try with small amount about $10 and buy bitcoin, then you have try available for selling back your bitcoin based on price of exchange market or not, and looking how much money do you lost when you buy bitcoin trough PayPal.

The word used "scam" is very inappropriate to be executed in this situation for the record that PayPal service is not providing such kind and the purchasing of Bitcoin and having it in line with PayPal's terms of services is still under the process. It does not mean that because you cannot withdraw your purchased Bitcoin through PayPal will give you the right to call it as a scam. It is just that the usage of Bitcoin on the platform of PayPal is still undergoing a process and can be accessed once it was already done for the people to make use of the purchased Bitcoin just like what local exchangers do to effectively use Bitcoin and that serves as for payment options to pay merchants for certain goods and services offered. As of the moment, PayPal is still working into their system to effectively adapt the usage of purchased Bitcoin that based on the news can possibly be offered by the entrance of year 2021. Do not bother to have so much worry for we all know the credibility and reputation associated with the name of PayPal itself.

some time ago I read news from paypal for bitcoin purchases using the paypal platform it is still only available in a few countries so if you state that the biggest platform like paypal is a scam then it will not be possible, i think you just need to read more information or contact support is available on paypal so maybe what is the problem will have a solution.

Therefore, what is the point of being integrated the bitcoin in paypal? If after all its useless, would it attract investors and users in paypal. Think about how paypal will lose the trust and reputation they have planted to the people who use their services for just a click. Of course, they won't let that happen because:

1. Bitcoin is a digital currency which suits to the use of paypal.
2. Paypal is not a fool to make a noise then dip itself in hot oil just to hype bitcoin to the people.

I was pleased to hear that PayPal started accepting bitcoin. However, I am truly disappointed to know that we all misunderstood their intention. Bitcoin was created as a currency and that is why someone used it to pay for pizza. So, what sense does it make if you can buy bitcoin but can't really use it for its real purpose? Just to buy and sell? Well, this is only making bitcoin look like an investment scheme. And trust me, when volatility goes wrong, the millions of people brought by PayPal (who sees bitcoin as an investment) may start looking at bitcoin as a scam. And this my friends can cause bitcoin to worthless.

Adding to that, OP, In as much as I no longer agree with PayPal, I wouldn't really use the "scam" word.

PayPal Bitcoin is not a scam. PayPal will increase the demand for crypto by supporting crypto. PayPal has made it much easier to use crypto in countries where transactions were not available. LocalBitcoins is an online service for matching individual buyers and sellers in which case you connect with Bitcoin sellers who accept PayPal. Due to the one-to-one nature of the site, it is incredibly important to do business only with high quality reputable users. PayPal is very helpful in both crypto and outside of crypto.

That's not a scam OP but a business scheme that works best for PayPal. They like to take your money after all  ;D You just have to read carefully their TOS regarding BTC and you'll quickly understand that they're doing something similar like Revolut and other wallets. I'll personally never buy BTC on there cuz of the reasons stated above, but still many people buy it.

I am waiting for you to answer my question that was asked yesterday, but no one has yet responded. please take responsibility for what you describe. so that I am not mistaken. You understand something that I don't know, so I asked you yesterday. I hope you open my question and answer it immediately.

funny... until recently it was:

paypal is a centralized service and bitcoin is better than paypal

that's what they said.

a few weeks ago paypal says it will add bitcoin and the bitcoin price starts to see a very big increase that was almost impossible to see this year.

Now I ask myself:

where is that pride that they kept saying about paypal and centralized services?

the fact is that this crypto market no longer cares about the philosophy of the past, today people want to see the price going to the moon, they want to see wall street in this market, they want to see services like paypal and amazon and more others enter this market.

you can talk about scam, but nobody will care about those points you mentioned

https://i.imgur.com/gdIahjJ.jpg

that way, no doubt that next week we will be in the $20,000

 ;D

I don't think that paypal is a scam, it is just their intention is not what we expected. What we expect from paypal to do is to become a wallet and an exchange at the same time where we can buy, sell or send btc at the same time wherein the exactly opposite of what they do.

Honestly, it puts me on doubt and  we can not transact Bitcoin one to another then this is actually not the Bitcoin just a number and it  is probably a business strategy to attract crypto people on paypal.This video link and post was helpful.

Paypal's implementation is exactly what I expected it to be from the first moment it was announced. I would've been amazed if they had accepted and sent out raw Bitcoin. That's a world more pain and work.

They have a Bitlicence which means the coins have to be real. That doesn't mean they're going to let anyone at them and the majority of their customers probably don't want it either.

Completely agree with your post, especially the last line. I personally know a lot of people who would like to invest in cryptocurrency, but are unable to do so because of all the complexity involved such as registering with a crypto-exchange, going through KYC, setting up a crypto wallet, taking multiple backups, doing 2 FA.etc. PayPal just do away with all these requirements and make it easier for people to invest in cryptocurrency. It is just like an ETF. In an ETF, the bank holds the gold or other commodity for you. Here PayPal is doing the same.

That is too much to say mate,Yeah we are in doubt about the policies of PayPal towards crypto but calling as scam is foul.
First there are still no victim and second how come to be scamming when you can still use as purchasing material the bitcoin you transferred in paypal?so i believe that this is exaggerated.
But anyway this is good point also so these claims needs to be addressed and clarify for the benefits of crypto users and also paypal users.

Don't say Paypal is a scam because it can't make Bitcoin withdrawals, It seems that people who say Paypal are scam must read
the terms and conditions.Because the official Paypal website clearly says that they can only make Bitcoin transactions on their platform,
but I believe this rule will definitely change in the future. Let Paypal adopt Bitcoin in their own way, the most important thing is to give
them time.

I think OP here is just being sarcastic in pointing out this issues ,and i believe that the reason why he reacted like this is that he is interested in using the features but found out this things so he is disappointed .

Paypal is more established and popular than crypto so i'm sure they are only protecting their reputation so rules are set first favoring them but i think over time all of this wull be resolve and the merging will bring success to both user of Paypal and Crypto.

There are a lot of exchanges that don't give their uses the keys to their wallet.

That is the reason why we usually say that if you are putting your cryptocurrencies in an exchange, you don't own it because you don't have the private keys to it. This is pretty normal, that is why we don't usually use hot wallets. I guess you are used to those wallets that have their private keys and it is better, but you should know that there are a lot wallets like these.

I think saying Paypal is a scam is a big accusation and inappropriate to say because they just don't meet what we are expecting from them, they are just at the beginning handling Bitcoin in their business. If you have any issue regarding that then you can tell it to them through their costumer service. Maybe later on they will improve everything to satisfy their costumers.

Paypal has only accepted new Bitcoin for a while and they may still be exploring to learn about how to transfer from your wallet to someone else or make Bitcoin payments, so before you get a deeper understanding of the matter you shouldn't call it a scam In my opinion it is only a matter of time and you can wait until it is resolved. I think paypal already has a really good name there and they won't scam everyone just because of cases like this.

it's still too early to say they are a scam, everything needs a process and you don't have to say it's a scam, let's see how it works slowly going forward, I also hope to be able to buy and sell crypto on paypal in the future, so that will make it easier for me to do transactions using money from paypal, to be honest your video does not show anything scam in my opinion

I agree. They have just started the testing phase, and it will go on until mid-2021. The proper implementation and additional features will be offered only after this testing period. And you have to be careful, if you want to call a successful business, which has run for more than 20 years as a scam. The community has reacted positively to the news, as can be seen from the 80% jump in exchange rates.

A scam is an indiscriminate accusation without any strong argument. PayPal is just starting to adopt crypto as one of a payment method scheduled for 2021 through the Venmo app, they certainly don't want to miss this astounding payment technology. Although PayPal disables withdrawal bitcoin for now, the terms stated 'currently' which could mean they may consider plans to expand the functionality, a better way to do it without having to go through all the hassle, hence PayPal wants to acquire crypto-companies to handle it.

I don't think PayPal bitcoin is scam, they don't need to put at risk their reputation, it's a huge financial company with active users all over the world. In my opinion they did a big step forward to bitcoin adoption and serve as a proof that bitcoin is here to stay for other institutions.

I think , let's give Paypal a chance to prove their company being able to adopt bitcoin and other crypto currency on their platform. It's too early to judge Paypal for their adoption in cryptocurrency, beside Paypal is one of the biggest company that also trusted a lot of people.

Paypal is one reputable company not too good with the support they give to bitcoin though but it was something that is worth it. Another post here in the forum stating that binance receiving bulk orders of buying bitcoin using paypal. It is something remarkable and I do not know wht we should be forgetting this that paypal has done good with bitcoin and to bitcoin user.

I, for one, will never use PayPal crypto option, because it's so very lame.

At the same time, I mist admit that PayPal has done something that adds to mass adoption, and it's a good thing.

I think the Bitcoin Paypals are starting to be hotly discussed. Where Paypal is now reportedly opening a Bitcoin buying and selling market and others. But I myself have not checked whether the Paypals is true or not.

Paypal is still testing Bitcoin on its platform...
since the first launch of buying or selling Bitcoin on PayPal I have been convinced that PayPal is not really serious about developing their new service, there is no point in buying Bitcoin there because there is already a very reliable Bitcoin buying and selling platform on DEX and CEX.

Exactly. They're are just starting to roll out their idea so perhaps cutting them a little slack would be in order...

As the scam tag is just the OP's knee-jerk reaction to PP's plans, trying a change of subject line to see if it sticks.

I would not call PayPal a scam, not at all. But I think they shouldn't have added this feature.

I don't get it, accusing paypal is a scam well in fact many users still patronizing this platform. I know some can even use to deposit, purchase bitcoin and can withdraw. Paypal is just starting to adopt bitcoin service if there is an issues on bitcoin in my view, let’s give them a doubt. There is a risks of course putting your assets in PayPal since not your keys, not your crypto.

You have a good point. We are not very convinced that PayPal is accepting bitcoin and other cryptocurrencies on its network because DEX and CEX are more reliable for buying and selling cryptocurrency platform than PayPal. Still, PayPal is one reason why bitcoin's price surprisingly increased its value, and we are now getting closer to its ATH.

PayPal has just made a service addition, and for the same we can't state PayPal's bitcoin to be a scam. In my opinion this has made bitcoin go more popular, because paypal is known and used by more number of people compared to bitcoin. Now it is bitcoin, maybe in the future we can expect large number of cryptocurrencies (altcoins) added to the list giving way for users to buy and sell through the centralized service.

Please don’t compare Coinbase to PayPal in this case, Coinbase is totally different.

Yes, Coinbase doesn’t give you your private keys, but at least what you have in your wallet is real cryptocurrencies and you can send them to another wallet you own where you can actually hold the private keys. But, according to the OP this is not the case with PayPal.

All exchanges hold our coins but we never demand for private-key there. So, if we understand their reputation then we can believe them for our coins else we may need to simply move on. Blaming as scam is not a right approach just because of non-access to private-key.

I guess the system is really worst and the transactions are hidden, but I maybe it's just too early to assume this thing as they are just getting started into crypto for sure there will be changes.


This is probably their disadvantage since this is more like a custodial bitcoin wallet.


These two are something that I highly doubt for sure you able to withdraw your bitcoin and at the same time you could pay anyone with bitcoin at that account otherwise no people or investor is gonna use this system at all.

Without these features, it's just useless and it will be a huge failure, so for sure, there will be changes and updates about it.

you seem to not grasp what is going on here. it is not just about not having your keys, it is about not even being able to use your bitcoins! for example if you wanted to withdraw and pay for something with bitcoin, you can not do that.
basically all Paypal lets you to do is to trade on their platform and pay them the fee. and when i say trade it means buying bitcoin from THEM.
the fact that you can not withdraw bitcoin is a big red flag because they may not even have any bitcoin to let you withdraw. in other words they are selling you nothing but receive your money all the same.

For anyone who doesn't quite understand why some of us see the potential for an actual scam, despite the fact that PayPal are a "respected and recognised company" or whatever, I'll see if I can make it clearer:


If we're talking about national currencies and custodians (i.e. banks), it's a widely accepted practice for such custodians to operate fractional reserve schemes.  Laws and/or regulations say it's fine for them to do that.  If we work on the assumption that it is highly unlikely all of their customers will attempt to withdraw their entire balance in cash at the same time, there is no issue.  

But when it comes to cryptographic currencies and custodians, fractional reserve suddenly becomes a very perilous gamble.  If the company in question are not capable of signing a transaction for every BTC they claim to own, they are technically insolvent.  Bitcoin doesn't do debt.  It's not a thing in our ecosystem.  A valid transaction must take place on the blockchain in order for a customer to withdraw funds from that custodian to their own wallet.  There is no way to fake it.  Meaning that if PayPal do eventually decide to offer BTC withdrawals, they better make damn sure they have sufficient funds in place, or they're going to have some very upset users, making some very legitimate allegations of scamming.

And until/unless they offer BTC withdrawals, we can't know for sure if they're solvent or not.  Paxos, the actual custodian, do have a NY "Bitlicense", but in terms of capital requirements, that merely means:


Or, in plain English, some random dickhead with a fancy job title gets to decide how much BTC they need to keep in reserve.  And that person probably doesn't understand the risks of not being fully backed either.  Hence my cynicism.

---

TL;DR - Don't operate fractional reserve with Bitcoin.  It will fuck both you and your customers.

I am kinda impressed by PayPal however....the regular wallet and the BTC wallet are right in your face the same

size...I can see the amount of BTC I have on Paypal also (about 0.0037 some such...and I bought in at $50.00

and can sell out at $54.00 now. So for its uses...I can see why they did it this way. As stated before IMHO,

Paypal will use KYC and such with BTC in a debit card format to jump-start the 'unbanked' of the world in

dubious countries with dubious gov't and banking, bribes, etc. And IMHO will offer

banking itself and also be an exchange...just too...I see this as their real plan long term.

much $$$ out there for PayPal to bring in the unbanked using BTC 'security' and debit BTC card to 'jumpstart'

the process. Not a fan, BTC/Crypto works or will work at that point just as well without banking, but I'd bet my

own $$$ that is where this is going in Paypals view long term

But then again...PayPal could 'never' truly let you control your BTC/Crypto in and out I suppose. But it gives

newbies a foot in the door on BTC/Crypto, IMHO. :) Adoption/Adoption/Adoption! IMHO!

Brad

I think Paypal is still in its trial phase so it will be early for us to conclude that it's a scam because Paypal has been reputable all these years and I don't think that they would let their reputation be ruined by that. Let's wait for more developments because I'm sure that they will do something to improve it. Maybe there are restrictions or limits for now but if you're having a hard time just try to contact their support for them to enlighten you about their terms and conditions about Bitcoin transactions.

Truly it may not be possible to withdraw bitcoin or send to another wallet yet but you can surely pay for goods and services though. The paypal account of recipient need to be for merchant. This feature is still in trial period hence it may not be satisfactory now.

This doesn't qualify them to be a scam, i think paypal have made a name for themselves which proves they are not a scam. They have millions of users, i do agree they may be strict with their terms and high fee to top it but they are not a scam.

It's not a scam
BUT
-----
the reason they want you to buy bitcoin through them&&you cant sell/transfer it after
is because they know they win either way
so for example:
BTC price goes down they don't care since YOU already paid for it to them
BTC price goes up and THEY enjoy the profits not you

I think they just want to stock up bitcoins and enjoy the profits without any risks

I mean think about it

A good way to advertise your video though :). Posting things like this just to have some views on your Youtube channel. Nice Clickbait.

And please don't think that scam is the same as bad service or anything bad. Yes you can't do anything when you buy Bitcoin in Paypal but it doesn't mean that it is considered a scam already. Also think that it has been added just a month ago I think or two so possible that they will add some features that are related to Bitcoin in the future.

Scam? Do more research though and good luck in your channel :P.

Same observation mate at first i thought this is really an issue but getting deeper thats what i found that the advertising is the main reason and yeah he may earn viewers in this strategy.
Don't bother mate explaining to Him because surely he knew what is the real score and he was just fooling himself for pretending not to.
If the Owner is a Fud then the channel may also a Fud right? ;D

This is their first step on trying adding bitcoin in their system, many complaints will surely reach them and we can surely expect that they will change the bitcoin trading system in their platform. What's the point of having bitcoin if you can't use it like normal bitcoin. Paypal isn't a scam at all, they are just experimenting from where I see it.
If you see paypals bitcoin as a scam right now there are bunch of option you can go in and buy bitcoin, Binance and many more exchange out there.

This is my opinion regarding this topic as well. Not a big fan of PayPal (had bad experience with them in the past), but they have done something positive for the mass-adoption. And almost everyone is gaining, because the prices have risen by 70% to 80% during the last 2-3 weeks. And who knows, this measure from PayPal may result in more mainstream companies accepting BTC.

In my opinion, it's not a scam. but PayPal has bad service in buying and selling crypto assets. What I mean is that after we buy Bitcoin using US dollars on the PayPal service, Bitcoin is immediately available on the account, without being transferable at all. Bitcoin will return to the PayPal wallet custodian when we sell it or use it in online payments to tens of millions of merchants around the world.

Bitcoin's demand for PayPal crypto has doubled the quantity of capital within the cryptocurrency market is ten times above that recorded within the gold sector. Specialized media have interpreted this as a sign of Bitcoin's growth potential, although the bank's CEO, Jamie Dimon described the virtual currency as a scandalous hit two years ago but now most are investing. Virtual currencies can form a paradise within the context of declining reliance on Fiat currencies.

LOL... are you saying that cryptocurrency market capitalization is 10 times above that of gold market cap? That is factually wrong. The gold market cap, as per the current price stands at $11-$12 trillion. According to the coinmarketcap lisitng, the market capitalization for all the cryptocurrencies stand at less than $500 billion, and for Bitcoin the figure is reported at $330 billion.

I don't think it is scam, its just that it is so limited and there lot of thing paypal is considering to impose regulations. There are lot more better wallet than PayPal and we can use it if we feel like there is something scetchy on their platform. Paypal have just started and they are in the developing stage, it's a good start for the expansion of Cryptocurrency in the mainstream platforms. We have the freewill to not use it, time will tell if Paypal is reliable. Just like any other exchange, you really don't have full control over your funds in paypal, so better choose a hardware wallet.

Maybe we can not take the decision to call Paypal a scam. We need to wait a bit more. Let's see what feature Paypal will bring in the near future. Though I am not going to use Paypal for using Bitcoin. I prefer a noncustodial Wallet, not Paypal.

Paypal is not a scam.

We all know that. What the OP is emphasizing is that the Bitcoins, well, our Bitcoins in Paypal is not ours since they don't issue a private seed, proof that the Bitcoin in their wallet is yours. They can freeze it, they can ban you and just let your Bitcoins not be accessible by you, that is why people don't prefer using these kinds of wallets.

Too far to say that paypal is a scam with bitcoin in it, because we all know the legality used by paypal.

It is too far to say that bitcoin is a scam paypal feature, maybe it all takes time if we want to go further from this feature, because it is still new and needs a lot of innovation so that it can be one of the advantages of products on paypal in the future.

There is often a crucial distinction between "legality" and "morality".  Just because it's legal, doesn't mean we have to find it acceptable.

I'm still of the opinion that any custodial service dealing with IOUs and not operating full-reserve is effectively a scam.  Most people just don't realise it yet.  This applies to any exchanges or webwallets operating fractional reserve, not just PayPal.

It's a bit like 'Schrödinger's Cat'.  Until you open the box, you cannot tell whether the service has your BTC or if it's actually dead.

The original wallet for Bitcoin is better, because it doesn't require verification, and it's really you who holds it,
you can manage your wallet, but Paypal is a digital money wallet, it doesn't mean that if you use paypal then it's the same as other bitcoin wallets, and paypal is not a scammer.

I am still thinking that PayPal's Bitcoin trading are just new in their platform and maybe they are still adjusting, and gather more reviews to make their service better or might have some innovations to further serve their users/customers an awesome experience. Peoples testimonials comes in different ways...which other shares the best and more convenient buying and selling experience in PayPal and others are not. I guess, we should do more research about it and don't ever engage in this platform if you are skeptical of doing so. After all, there are lots of bitcoins well-established and popular trading platform that you need to try with.

Many investors are still finding it difficult to understand PayPal transaction which is very good for any investors who want to make a good profit from the market. PayPal bitcoin is not a scam but real transaction many investors use to grow their business and other things that Will bring profit for them.
Those that see PayPal bitcoin as a scam, are those people who don't have any idea on bitcoin transaction base on, bitcoin is not legalized in their country and most of them find it difficult to understand bitcoin and other PayPal account in their country.

That's the word "freeze" not a scam. I don't think Paypal will scam us, yeah they do have poor service regarding this matter but I don't think they will do to such an extent of scamming everyone.
They do have poor service for now perhaps because they don't yet familiar with few things here or might be in their trial period, just give them some time and they might do some changes in the system in the future. What I don't like about it is that PayPal doesn't allow us to have the keys.

Paypal has a Bitlicence. Itbit/Paxos who are doing the actual work have one and a banking charter thing. They would not be allowed to operate fractional reserves. If they attempted that they'd be nailed to the wall and also unbelievably stupid to attempt it.

It's the type of thing some college kid asshole would happily do, not big old players.

Paypal released support for cryptocurrency on 21 October last and please note that PayPal is not a crypto exchange service before, so give them time to develop this service for the world crypto community, we almost enjoy it :)

View and analyze again
https://twitter.com/PayPal/status/1318930120523087873

It is not scam. It is on testing step for the developers of Paypal. Soon they will announce for ready to use cryptocurrency service as they have promised to start in quarter one 2021. We need to wait patiently and give them time to be prepared for the next step.

As most of the people here believe that this is not enough reason to call Paypal a scam as it's a huge company and by doing a scam like that it would ruin the entire company in minutes. So, I agree that is is not a scam. But for such a huge company it is not cool to add Bitcoin with very limited features. I mean if they wanted they could easily add bitcoin properly with all it's features. It will not be a big deal for them. But they added it with limited feature.

It is either they are testing it yet or they did not understand the bitcoin itself yet. They should have tested it everything at the beginning and added it with all it's features.

OP here - so many of you seem to be unhappy that I used the word "scam". Here's why I am so skeptical.....

1) Right now , we all agree that the way that they've implemented this is not ideal. However many are optimistic that PayPals implementation will change to allow withdrawals. If and when that happens, I will be happy to say that I was wrong, but I'm waiting for that to happen.

2) Remember, Bitcoin was ignored and mocked for so long, but with the attention that its now receiving , those that stand to lose from it will start increasing their attacks on it. PayPals traditional business stands to be impacted in a big way by crypto including Bitcoin. If PayPal is smart , it will embrace Bitcoin which could be very good for them.

3) If Paypal / other institutions and governments start attacking Bitcoin after this recent resurgence, one way they'll do it is to convince users that they're using Bitcoin ( therefore riding the buzz ) while not actually giving them Bitcoin. This would both create fraction reserve inflation and slowly make the actual blockchain irrelevant , while the uninformed masses think they're getting in on the Bitcoin action.

4) If nothing changes, all PayPals "bitcoin" is,  is a number in their database, with absolutely nothing to do with Bitcoin or the blockchain itself ( as I've said in the video , where it's easier to explain than typing out all this ).

5) IF PayPals intentions are good, they implement the changes that we all want including withdrawals , then it would prove that they're NOT attacking Bitcoin , but embracing it. More importantly , Paypals Bitcoin platform could become the ULTIMATE LIGHTNING NETWORK , helping Bitcoin payments scale , but with the options to still withdraw and own your coins ( with that final transaction being recorded on the blockchain ).

Lets see what happens next......

I have been using Paypal for a long time, so I really believe Paypal will not do anything that could damage its reputation. We cannot
blame Paypal for not allowing its users to withdraw Bitcoin. They do this must have their own reasons, we give time to Paypal to perform
services that they think are right. I believe all the rules they make regarding Bitcoin are temporary, do not rush to require Paypal to provide
the services that many people want.

Because I believe they are more experienced in the digital payment world, so Paypal knows what is best for their platform. At least there has
been great progress Paypal has finally accepted cryptocurrency, if there are still shortcomings, because this is still in the early process of adoption.

Me either, I'm using PayPal for good and for a long time but still don't have any problem with that, maybe this new feature is of course a new one and needs development, maybe soon they will open that withdraw option, PayPal didn't scam people I think, it just that maybe this thing is included in their toc, or disclaimer but we didn't notice it.

This product is still new to paypal, of course there will be many shortcomings that occur. Actually, this only takes time to be able to see how developments will occur in bitcoin paypal going forward.

We can't bigger company currency like PayPal is scam because they have working for long time and become most currency digital payment used by many people around the world as way for online transaction and EBAY have adopt PayPal for long term ago as currency payment, just little waiting and get their announcement how about rule of purchase bitcoin with PayPal, what about price the same with other exchange market for buying or selling, just price make by PayPal it self without checking demand and supply. I think why you waste your time with purchasing bitcoin trough PayPal, not available for your country with local exchange market to buy bitcoin and save it, or do you wanna try with new payment way to buy bitcoin with PayPal.

That's right. Just because we do not agree with how PayPal is dealing with and portraying BTC doesn't mean they're doing it illegally.


I wouldn't go so far as saying that any IOUs not operating of full-reserves are scams, I get that it is far from ideal but surely there would have been some audits in place to ensure that whatever they estimate (even if it is not held in reserve) is something that the business plan can cover. It is true though that some projects take advantage of the system which is why fully-backed up assets operations are being favoured over the alternative.

That said, no I do not in any way approve of how PayPal is dealing with BTC, it still keeps all the people who use it in a blindspot.

mentioned, all is true. If anyone buy bitcoin from Paypal, they won't own the key even can't transfer bitcoin but those aren't enough reason to considered paypal's bitcoin as scam.paypal giving people oppourtunity to use bitcoin though it.public can trade there, they can buy bitcoin at ow and sell it with high. Thus people can increase their fund on paypal platform.and i read some article where i found, Paypal soon going to allow bitcoin payment system.hope others issues will be solved gradually

maybe because it is still new being done and of course there will always be deficiencies that occur and must be tolerated and with developments it will certainly be updated and addressed. we know that paypal may still be new to the crypto field so there will always be updates even though they have experience with trading. but for me what happened at paypal is just an explanation that bitcoin is recognized, because i feel like not using paypal because for me it is not and not the best way at this time

In my opinion, Paypal isn't scam but they provided very worst service.they close accounts for simple reason even without reason. Those 3 points you mentioned, i can't disagree with you but you should understand that, they have some limitation too!! It isn't possible for any platform to enable all features of crypto so soon while they just adpot it! So should wait more for their nex annonucment about those facts

A bit disappointed about it honestly, but it's too far from a scam to be considered a scam. For instance, there's the fact that you can still convert it to dollars which you can then withdraw. And the fact that coinbase doesn't make you own the keys too yet became one of if not the biggest crypto app in the west says a lot about the paypal bitcoin feature. There's the things to get around. Exactly. They value privacy so much thinking it will help fend the hackers off yet still experience yearly cases of hacking anyway. The feature is still in its infancy and would include features that would improve thebquality of buyimg bitcoin in the website.

Yes.. this is the biggest risk while using a PayPal account. Every now and then, they will make your account "limited" and for an uncertain period you will lose access to your funds which are stored in it. In most cases, eventually you may get back the access in a few weeks or even months, but this can leave the user very frustrated and bitter. And the addition of cryptocurrency to the PayPal account is definitely not going to make matters any more easier.

And I would like to add there is no transaction hash if you buy or sell, it's like they twisted how Bitcoin works, newbies will be disoriented if they first use Bitcoin on PayPal and then they acquire more of it through peer to peer, PayPal changed the definition of Cryptocurrency by integrating it in their platform.

The only reason that I can think of is that they are doing this to prevent money laundering in their platform, which is reasonable but to hold your customers account just because they have bitcoin in there is definitely something. I like the service of Paypal because they are the most reliable International payment system in my country but I think that they are still a youngling when it comes to integrating it in their payment system. Or a far more sinister which I hope is not really the case which is they are trying to find a way to screw over the people.

Well, I think the approach that you can do here is if you are not really comfortable with the service, gauge it first using a small amount of Bitcoin and see if you can use the service to your liking or not. Immediately calling it a scam does not really do justice here and it only makes you look like a noob to the eyes of the Bitcoin veterans. As many people do in the real world, they put a small amount of money or cryptocurrency in the wallet and try to use it and see if they are satisfied with the service.

there is no scam word, the best paypal platform in the world, and bitcoin is the most popular crypto currency,
of course far from the word scam, I know if the price has reached the top, then the FUD will continue to be spoken from people,
therefore don't be consumed by Fudder!

See the price increase, it clearly shows that people are not looking at any disadvantage of paypal, on the contrary most people just believe that paypal is bringing a great demand to the bitcoin market and that with that paypal will not go freeze people's accounts as easily as in the past. this is a "game" where paypal wins and bitcoin users also win. I see no reason for people to be too concerned about the cases of freezing funds for 180 days that paypal does.

Do you mean one of biggest payment giant is a scammer? Spreading such rumours will not impact the market or BTC, PayPal has a strong reputation across the world and has a wide range of users you can't entertain by spreading such news in this forum.

PayPal service providers are very genuine to their users and everyone aware of that, I feel sorry for you if you went through some misconception kind get support from the cs team.