Paypal accepted the Crypto but it will reduce the BTC marketcaps

[o_e_l_e_o]

Fake Bitcoin can be determined because the address can be checked online if it's based on blockchain network

Anything Paxos does buy on behalf of PayPal will be held in their general cold storage and mixed with all other bitcoin they are holding. Individual users or even PayPal won't have a single address they can check for funds.

for example once Paypal has gotten a certain volume of BTC bought on their platform (thousands) they could ask Paxos to put a significant amount of that on an address and publish that address for all to see.

That only proves PayPal have that amount of bitcoin right now. It says nothing about the other 99.9% of the time. And even then, there is no way to check if that covers all their bitcoin holdings. If they put 1,000 BTC on an address, how do we know PayPal customers haven't collectively purchased 10,000 BTC?

I would say the odds of fractional reserve shenanigans are very low.

I agree they are very low, but they are not zero. Much better to hold your own keys and your own coins, where the odds of any fractional reserve shenanigans are exactly zero.

[SquallLeonhart]

The whole idea of bitcoin was to be decentralized, if we move to paypal and let them do our banking, what would be the difference of bitcoin with paper money? Sure we are still decentralized in the currency part of it, but we would basically be not decentralized in how we use it, it would become highly centralized version of a decentralized currency and I do not find it enough.

I am not against using centralized places when we need some services, sure use paypal to pay for stuff with crpto that is fine, but to let them keep all of my money? I am not sure if I am comfortable with that at all. Hence I think the payment process should be used and paypal is great at it and everyone uses them, but that should be it, nothing more than that should be used from them.

[drlukacs]

Blockchain.com is not good comparing to its 12%  APY - Need a different thing

Blockchain.com issue only 12% APY per year while bitcoin has too much fluctuation, On daily change it could go up upto 12% up and around -4%-5% down which is around atleast 60% per month. We need something different which may auto sell our cryptos whenever it hits its ATH and buy those crypto again whenever it hits its ATL and I want that there should be either a bank who may do that or either there should be binance or coinbase involved or maybe any good organization along with good reputation and users trust (like Microsoft/Amazon) may do that. That bank or organization is needed to be insured too. If this happens then it will not only increase the bitcoin marketcaps rapidly but will also attract more and more people to join bitcoin and it will also resolve the world's major problem which is poverty p.s you don't know regarding how good this could be, it will increase the businesses growth too much all around the world. Just assume that you only have $100 in bitcoins in your wallet and after a month you find that your wallet has $160 and next month these $160 converted to much bigger then how many people will join to only accept bitcoins?

I have never agreed with the view that it is easy to make money from Bitcoin in particular and all financial markets in general. If anyone could be led to easily earn Bitcoin, then surely the value of Bitcoin would decrease exponentially! Here is the reason :
+ When a coin is too easy to make, it is certainly not a coin of real value, that is the law of nature.
+ What do you think when everyone doesn't need to do anything but buy insurance and make a lot of money every year?  Wasn't this the mechanism of many scam projects before?
->> So this marketing would be really wrong and it would cause the value of bitcoin to decrease over time. We should all learn how to make smart money instead of wanting to make this game easier.

[aesma]

If these are real bitcoins then paypal would need to remove money back guarantee tag/insurance from the items paid via cryptocurrency & users would be allowed to withdraw those funds to their crypto wallet.

Furthermore, people who do not receive the cryptocurrency payments, can only be able to buy bitcoin and hold on their paypal wallet, they would not be allowed to withdraw as there could be chances of scam like someone who sell something and does not deliver then convert their money to bitcoins and then withdraw to his/her crypto wallet

That's not the plan. Paypal doesn't handle BTC, as we keep repeating. If you have bought "BTC" on Paypal, and want to use it to buy something (when that will be activated), then Paypal will sell the BTC needed to pay the merchant in his fiat currency. Money back can still work, but you will have the "conversion risk" already existing when going from one fiat to another, meaning if BTC has gone up in price, you'll get less back. If BTC has gone down, you will get more.

[sheenshane]

I am not against using centralized places when we need some services, sure use paypal to pay for stuff with crpto that is fine, but to let them keep all of my money? I am not sure if I am comfortable with that at all. Hence I think the payment process should be used and paypal is great at it and everyone uses them, but that should be it, nothing more than that should be used from them.

I tend to agree with you on this statement.  Paypal is just a payment processor who adopts Bitcoin as a part of payment but it doesn't mean this is your wallet that might hold a huge fund.  It might you will have a fake amount of Bitcoin in your Paypal account that doesn't have an effect on the Marketcaps, the same as the custodial wallets that they had their own hot wallets as the main receiver of any amount transfer.  But Paypal was totally different because you can't even transfer your Bitcoin into other addresses, which means it's pure for the purpose of payment processor.

A good benefit for Paypal accepting Bitcoin is the awareness of people, if they will understand how Bitcoin works, for sure they will find ways to hold Bitcoin together with the key.

[batang_bitcoin]

Why do you say that they will be selling fake bitcoins? it's easy to determine if they will do that and just going to sell bitcoin that was made as an ERC20 token or any chain for altcoins. We have to wait if they will actually do that but I'd assume that they won't. They can't do that as they're one of the biggest payment processors in the world and just dive into cryptocurrencies. Do you have any source telling that they will doing it or gonna sell fake bitcoins as you're saying?

As I read the statement of our buddy here, this is not proven yet but what I analyze was only an accusations for PayPal. Fake Bitcoin can be determined because the address can be checked online if it's based on blockchain network, so if he can send us proof or link maybe it's a better representation. The acceptance of crypto of this site is a good alternative to make payment transaction more efficient to all online shoppers.

Just like other exchanges, they can have their off chain transactions or they will just have a note that the transaction made was successfully processed and they are not obliged to put a transaction id that can be seen on the network.
It's only like labelling that it's transaction id but it's for their own record and it's not publicly broadcasted.

[o_e_l_e_o]

The whole idea of bitcoin was to be decentralized, if we move to paypal and let them do our banking, what would be the difference of bitcoin with paper money?

I don't disagree with you, but there are a significant amount of people who already use bitcoin in a completely non-decentralized way. Coinbase hold over one million bitcoin belonging to their users in their cold wallets, and that's just one exchange. All the exchanges, all the custodial web wallets, all the third party services, and so on. Indeed, there are already numerous services just like PayPal which allow users to "buy" bitcoin, but never actually withdraw, hold, spend, transfer, or use it. PayPal is simply the latest company to jump on the bandwagon for their own profit.

Holding coins you don't own on PayPal is not all that different from holding coins you don't own on Coinbase or any other centralized exchange. The difference only comes when you withdraw the coins and hold them yourself.

[exstasie]

I would say the odds of fractional reserve shenanigans are very low.

I agree they are very low, but they are not zero. Much better to hold your own keys and your own coins, where the odds of any fractional reserve shenanigans are exactly zero.

Sure, that wasn't meant to encourage people to invest on Paypal or downplay the security risks. It was just a comment on this idea that Paypal balances are fake BTC printed out of thin air. On the contrary, I expect Paypal to have quite a bullish effect on the market because the BTC they'll be accumulating on behalf of customers will be quite real.

[Vaskiy]

I would say the odds of fractional reserve shenanigans are very low.

I agree they are very low, but they are not zero. Much better to hold your own keys and your own coins, where the odds of any fractional reserve shenanigans are exactly zero.

Sure, that wasn't meant to encourage people to invest on Paypal or downplay the security risks. It was just a comment on this idea that Paypal balances are fake BTC printed out of thin air. On the contrary, I expect Paypal to have quite a bullish effect on the market because the BTC they'll be accumulating on behalf of customers will be quite real.

Same as we get digital money through the net banking created out of thin air, it isn't possible to do the same on bitcoin. If paypal is a new company getting into the transaction business, then there is possible chances of paypal doing it. A company that has gained good reputation in the market will not ruin it.

[Emitdama]

Mate, I think you don’t know what you are saying here, like for real, what do you mean by they will be selling fake bitcoins that are generated our of thin air?

What does that mean, how does anyone just generate Bitcoin? I know for sure that once they start offering this particular feature it’s not going to be just buying and selling Bitcoin, I believe users will also be able to buy Bitcoin and send to addresses from a different wallet that is PayPal based.

So, if the bitcoins are fake and generated, how do you think this is going to work? Get your facts right before you talk please, stop posting whatever comes to your mind without verifying it.

[stompix]

I agree they are very low, but they are not zero. Much better to hold your own keys and your own coins, where the odds of any fractional reserve shenanigans are exactly zero.

I could say they are pretty close to zero.
What advantage would be for them to not buy those coins and keep the $?
The risks are insane, if BTC goes up by x2/x3 and they have a few tens of millions invested they will need to come with that money if people decide to cash out, where would they pull that out? Gamble huge amounts of bitcoin going down? Again not the smartest thing.

You do this with things that have slim to none chances of doubling their value, you can play with gold this way as long as you get a constant influx of money but one small pump in the markets and your whole business is turning into a Ponzi scheme. For what? They already have published some pretty high fees for those so they will milk a lot of money from their users, it's simply not worth it.
Of course, for a new private company that would have gone with this approach, I would say the chances are well above zero, I'm very doubtful Revolut does this,  and I call the chances in double digits but PayPal already has a thriving business and its a public company they wouldn't be able to hide this.

The chances of Paypal playing dirty I consider to be minimal, the chances of Paxos making a mess and losing some coins are way higher in my opinion.

[o_e_l_e_o]

The chances of Paypal playing dirty I consider to be minimal

I agree that they are very low, but they are not and can not be zero. It doesn't matter how big, how reputable, or how trustworthy the third party (or parties, in this case) you are using - there is always a risk that they do something shady, and you will never be able to prove 100% that they are holding the coins that they say they are 100% of the time. There have been a number of big exchanges which people consider "trustworthy", such as Huobi and OKCoin, which have been found to be running fractional reserve system and lending out and investing user's deposits without their knowledge or consent to make more profit for themselves. There is no way you can know that PayPal or Paxos won't do the same thing. The risk is low, yes, but it is not zero.

The only way to know that you actually have the coins you think you have is to control their private keys yourself.

[Psynthax]

How they sell fake bitcoin tho? "bitcoin" that is IN the bitcoin blockchain is real bitcoin and I think it's impossible to create bitcoin out of thin air except they do hardfork or something like that making their own version of bitcoin otherwise it's not gonna happen and to manipulate bitcoin blockchain is like doing some kind of miracle. it's nearly impossible. BTC market cap will not be affected paypal literally become a payment method only here nothing more.