PayPal fears Bitcoin :) PayPal CEO Dan Schulman Disses BTC & Praises Blockchain

[maianh09]

Why do you need to switch to FIAT if it accepted as a currency then all will be traded with Bitcoin. I agree that Bitcoin is too volatile for a short time and it is not as stable as stable coin so it will not be able to replace FIAT.

[BitcoinHodler]

i am more interested to know when PayPal dudes are going to be desperate enough to start their own altcoin. it certainly has started like this before many times. the latest example was Jpmorgan crapcoin. they also attacked bitcoin a lot before they made their own altcoin. what would it be this time? peepee coin?

[TheCoinGrabber]

Well he was not wrong about the price fluctuation but most payment processor would find a way to lessen the effect of that. If it would bankrupt them, they wouldn't offer the service in the first place.

Note that I'm referring to services that accept the bitcoin and pays whatever utility one has to pay in fiat. These companies even offer discounts and rebates if you use their services. They wouldn't if they were struggling with the volatility.

[BitBustah]

Lol, this isn't surprising.  Paypal stands to lose a business if crypto becomes the preferred payment method.  This is just like Warren Buffet calling bitcoin rat poison when he holds la large percentage of banks and credit card companies.  These guys will criticize anything that threatens their bottom line.

[adzino]

Of course he is going to diss bitcoin. Crypto currencies is going be a huge competition for him. Do you really think he will put on full support for it? At best he can do is integrate crypto currencies to his current system. But yeah, then again there are these legal issues and risks associated with it. Though i won't deny, from his point of view he is correct. The conversion fee and all those hassle is actually going to be an issue. But, that problem will be for the people who will be converting it to fiat.

[2double0]

Fuck PayPal, who uses it nowadays?
Bitcoin surpassed PayPal in terms of total yearly transaction volume at $1.3 trillion.
More info here - https://www.newsbtc.com/2019/02/26/bitcoin-surpasses-paypal-in-yearly-transaction-volume-at-1-3-trillion/

That's the main reason that scared PayPal and all its employees as well as CEO himself that he couldn't resist himself from showing up and responding under the effect of jealousy. I don't really count anyone to anything if they belong to PayPal, I personally hate them for all their shady holds, especially their 21 day hold and account freezing.

[Mometaskers]

Well Bitcoin is competition to money transferring services like Western Union and Paypal just as much as it's competition to banks so of course you are going to hear some criticisms. He was not entirely wrong however, the crypto do have high fluctuation.

Most merchants seem to be unfazed though. Even in my country the range of payment options using online wallets are expanding. These obviously converts to fiat at one point but that they can keep the business going means there's money to be made.

[kryptqnick]

I agree with Schulman that volatility is an obstacle on the way to mass adoption. Retailers don't want to risk their profits so much, it's reasonable. Some do go for btc, though, but I am pretty sure they just convert btc into fiat on regular basis, and that's not how adoption should work.

So I'm not surprised by Dan's statement because they know that bitcoin is out there taking a big slice on their profit earnings that's why they continue to attack it in the media.

That is also true. Paypal is nothing special, and in my country it's not even that popular, because people can send their money here via Paypal, but not receive it. I agree with the  analyst that in the long run such services might want to be more crypto-friendly is they want to survive. Elong Musk is one of the founders of Paypal and he respects Bitcoin. Maybe he'll put some sense into the CEO's head  

[BrewMaster]

every day the bitcoin market looks more similar to 2015 bitcoin market. and each of the news like this one here makes me think there is more similarity and the same situation is about to be repeated soon.
we had the same scenarios too, people being scared of bitcoin future, price not rising and staying stable, some speaking of ridiculous drops to imaginary lows, and the news spreading lots of FUD about bitcoin...

you all know how it ended

[SaShiRaJaVu]

This is really interesting. PayPal CEO Dan Schulman disses BTCitcoin for price fluctuation and claims it can't be used as a currency for businesses due to the fact of needing to be converted to fiat after the sale (which takes a fee to convert, thus losing your margin). He also argues that the extreme price fluctuations of 10%+/- can be a hindrance for businesses to accept BTC.

They have to dismiss the use of bitcoin because it will hurt their business so much and they will come out with things like these, majority of the payment platform will be affected if people start using bitcoin for international business transactions, we will see a mass adoption in the future until then they can spread FUD like these to protect their businesses.

[pixie85]

Well of course he's going to publicly denounce Bitcoin, I mean Bitcoin has just surpassed Paypal in terms of yearly transaction volume.
Source: https://www.newsbtc.com/2019/02/26/bitcoin-surpasses-paypal-in-yearly-transaction-volume-at-1-3-trillion/

Then there's this, an ex Paypal COO has had some very positive things to say about Bitcoin recently.
Also participating in the Lightning Torch Bitcoin transaction relay.

If I were Paypal's CEO, I'd be worried too.

Source: https://cointelegraph.com/news/ex-paypal-coo-hails-bitcoin-acceleration-as-he-joins-lightning-torch-relay

This must be the reason why he got angry at Bitcoin for stealing their clients. Ex paypal coo must be the EX for that reason. Maybe he finally was able to share his positive attitude when he was kicked out of the company. Maybe they have policies that forbid praising cryptos?

Paypal is losing this battle. I'm sure CEO sees the numbers and knows where this is heading. It's not the fault of Bitcoin. It's the fault of Paypal's high fees.

[avikz]

This is really interesting. PayPal CEO Dan Schulman disses BTCitcoin for price fluctuation and claims it can't be used as a currency for businesses due to the fact of needing to be converted to fiat after the sale (which takes a fee to convert, thus losing your margin).

It's laughable when someone from Paypal talks about high fees! Paypal is well known for their exorbitant conversion fees so people will be less worried about margin if they use cryptos instead of paypal.

But I understand Dan's pain. Unlike Banks, PayPal's revenue is mostly dependent on the remittance business where they take fees for receiving money, converting money to local currency and to transfer money to our bank accounts. So cryptos are directly impacting their business. A lot of people like me stopped using paypal after inception of bitcoin. I had a bank verified paypal account which was pretty active. However, I recorded zero transactions in last 3 years after I adopted bitcoin for my freelancing payment. So paypal can he considered as the most badly affected company due to adoption of cryptos.

He also argues that the extreme price fluctuations of 10%+/- can be a hindrance for businesses to accept BTC.

I completely agree with this statement. 10% fluctuation in any direction is indeed huge and that is actually discouraging a lot of business owners to use bitcoin. Even though there are other reasons like non existent government regulation and confusing tax structure, but the fluctuation is also a big challenge.

I am sure there are lot if businesses accepting bitcoin, but it is particularly challenging for price intensive sectors where the competition is high.

[G2z_Riya]

This has been said years back by Peter Thiel who is the founder of PAYPAL. He states this to be the best solution for cross border transactions. To the same he added stating if he had known about the blockchain technology prior to the development of PAYPAL he could've used the same on PAYPAL. Now CEO of PayPal coming with such a news adds value to bitcoin.

[blockman]

every time i hear another FUD story by some big company, or bank,... i become more confident in bitcoin

Yes!
Everyone should start getting used to this kind of words. We've been attacked since before and look on where they are, this is another big company just think on how it went after Jamie Dimon was bashing bitcoin before.

[plvbob0070]

Of course they see bitcoin as a threat so it's not something surprising that they will throw shades about bitcoin. Though he still has a point. I mean bitcoin has its own pros and cons, and when you attack the other party, of course you'll tell its cons. It just matters how you view bitcoin yourselves.

[vv181]

We can't deny that volatility in the cryptocurrency markets is still a controversy for now. In one side some traders utilize the benefit of volatility to make a significant amount of profit. In another hand business owner won't use Bitcoin as the way of payment because of the volatility.

IMO, both aren't likely a good side but the second option more likely are more desired since the more Bitcoin accepted in the merchant, that will mean the adoption increase, and if the adoption increases the volatility will decrease.

[eternalgloom]

Well of course he's going to publicly denounce Bitcoin, I mean Bitcoin has just surpassed Paypal in terms of yearly transaction volume.
Source: https://www.newsbtc.com/2019/02/26/bitcoin-surpasses-paypal-in-yearly-transaction-volume-at-1-3-trillion/

Then there's this, an ex Paypal COO has had some very positive things to say about Bitcoin recently.
Also participating in the Lightning Torch Bitcoin transaction relay.

If I were Paypal's CEO, I'd be worried too.

Source: https://cointelegraph.com/news/ex-paypal-coo-hails-bitcoin-acceleration-as-he-joins-lightning-torch-relay

--snip--

Paypal is losing this battle. I'm sure CEO sees the numbers and knows where this is heading. It's not the fault of Bitcoin. It's the fault of Paypal's high fees.

Well, not only the high fees, it's also that you're just not in control of your own money.
Paypal can just lock your account for as long as they want, under the guise of 'fraud investigation'.

Imagine having a business and having your Paypal account frozen for X amount of weeks.
Yes, they have done this to many people and businesses, sometimes for pretty obscure reasons.

[manfredmann]

Paypal should not only fear cryptocurrency because the use of digital money has been widely used by the banks. The bank to bank transfer make this possible. If you were to think how those individuals will able to do successfully huge transactions is because of this banks. So paypal were just too assuming to react on the rise of cryptocurrency without seeing the real danger of their business behind with the banks nowadays. 

[Carlton Banks]

He's...not wrong. Rapid fluctuations are a pain. It's often said that volatility must be addressed for Bitcoin to mature. Some might deny this, but if they're the same people who don't want to spend coins because they're waiting for the price to go up, then they probably have to take a good look at themselves lol.

Bitcoin is in some ways unsuitable as a currency now, but I believe it won't be long until these competitors start shaking in their boots. They can talk trash in the meantime.

But there's an inescapable counter-balance to price volatility; it attracts traders. Which consequently increases market liquidity. Which attracts investors... which causes price volatility. So as you said, Bitcoin is more attractive as an investment asset than a medium of exchange for the majority of users, but only until the market matures.

But that's not stopping trade using Bitcoin; there's no reason not to sell as much of your regular fiat income as you can for BTC, then buy as much of your regular purchases using bitcoin. That supports the bitcoin economy, supports market liquidity, and proves these kind of claims from bitcoin's competitors wrong.

[Artemis3]

Paypal is one of the things that becomes obsolete with Bitcoin. Like banks, unless Paypal also becomes an exchange or payment processor (ie. deposit bitcoin pay fiat), people will simply stop using it. The main problem with Paypal is that depends on credit cards. Why? We should be able to move our funds from/to bitcoin.

But that is ok. The whole sector either embraces Bitcoin or will start getting kicked to the sides. Why he doesn't ask one of the actual creators of Paypal, you know, Elon Musk? That should give him a hint...