Bitcoin Forum

It seems lucrative but also a bit dangerous. If a buyer wants free bitcoins, I'm assuming they could just say they never received the coins and Paypal would gladly give them their money back. I've also read that paypal may reverse all your payments out of the blue if they believe you are trading currency.

My idea is to sell btc as collectible promissory notes that can optionally be redeemed for bitcoins. The auction will clearly state that you are bidding on the "collectible", not the BTC you can redeem it for. This way I have something physical to send them with delivery confirmation and I'm not directly selling BTC.

Is my idea worth pursuing or am I ultimately going to have my money stolen by paypal? Anyone else doing something similar and avoiding hassle from Paypal/eBay?

I don't know why anyone would buy bitcoins on ebay.  I doubt those sales are real.

Well you can always make like a instawallet account and put in the BTC in there, then ship the URL of instawallet it to the person that bought it.

With of course tracking number and taking a screenshot of your instawallet amount you put in.

Google instawallet because I dont want any mix up of my wallet. :/

Because they want to buy bitcoins with credit cards or PayPal. The question isn't why somebody would buy on eBay, but rather why somebody would sell with such repudiable payment methods. Hence the premiums bitcoins fetch on eBay.

You could just say you are selling "A paper wallet with 1BTC in it".

90% of the scammers are people with stolen accounts. If you mail a paper wallet with keyinfo and instructions on how to import/transfer it then you get the advantage of using a verified physical address.

Never done it, but it seems like it would thwart a lot of scammers. People can still lie about not getting it but you could just show a delivery confirmation number and will win the dispute 90% of the time.

I wouldn't recommend it, seller should start selling paper bitcoin money

Only an idiot was dispute a delivered items as not received.   Read up on "Item Significantly Not as Described Dispute".

People have done this before and still had their PayPal accounts frozen because PayPal explicitly states in their ToS that they won't process transactions for digital currency.  There are already many threads on this board posted by people who thought they'd found a "loophole", including someone who shipped paperclips and gave BTC as a "free bonus". 

I'm pretty sure that the ToS are also written in a way which says they won't arbitrate disputes over digital currency, too - so there's no incentive for buyers to trust sellers.

As I understand it, PayPal gave MemoryDealers hell just over selling Casascius Coins for PayPal.  And that's as physical as Bitcoins can get.

CONVENIENCE AND FAMILIARITY

PayPal denied. http://www.ebay.com/itm/230883477390