PayPal to allow cryptocurrency buying, selling and shopping on its network

[fillippone]

<...>
There is no doubt that the adoption by PayPal is responsible for the current bull run. For almost a year (mid-2019 to mid-2020), the Bitcoin price was stagnant at around $10,000 per coin. But immediately after the news of PayPal adoption came out, the prices started moving upwards. There may be some other minor triggers, but IMO PayPal is responsible for more than 90% of the current rally.

Trying to give a quantitative background to this statement, we can look at volumes at itBit, whose trading desk PayPal is using to back client’s orders.



We are seeing a noticeable increase of activity since the announcement, not a spike, but a regime shift. For sure there are PayPal customers buying and selling bitcoins with a double counting on volumes, but I think, given the high fees and bid/offer spread, traders and scalpers are a tiny fractions of those volumes.
I think the vast majority are holders, maybe weak hands, but hodlers.

[1714606996]

1714606996

[1714606996]

1714606996

[1714606996]

1714606996

[1714606996]

1714606996

[sapnu]

Paypal's adoption on bitcoin is one of the reasons why bitcoin is doing good right now and it's inevitable  we are looking forward to see ATH of bitcoin's price before end of the year. These adoption paved great uses of online payment system that users have now an alternative way to use bitcoin on buying online items and this testament will be forever be used in on paypal future transactions. This is just an early stage, so hoping more updates to come and more integration between crypto currencies in the platform.

There is no doubt that the adoption by PayPal is responsible for the current bull run. For almost a year (mid-2019 to mid-2020), the Bitcoin price was stagnant at around $10,000 per coin. But immediately after the news of PayPal adoption came out, the prices started moving upwards. There may be some other minor triggers, but IMO PayPal is responsible for more than 90% of the current rally.

We can see the growth of the market after the adoption of Paypal, so we can see that it has a great effect on the market when one company adopts cryptocurrency, and since Paypal is being used as an online paying service and can be used all around the world, there are lots of people who knew what bitcoin is. This really helps to spread the good use of bitcoin and to prove to them that it is not a scam. As of now, Visa is also trying to adopt bitcoin, another big company will adopt it, let us see what will happen after that.

[BigBoy89]

Paypal's adoption of crypto is good for the whole community. The current bull run is one of the few good stuff in 2020.

But I would never ever trust PayPal to buy *and keep* any coins there. I had problems with eBay/PP and frozen account year ago and from that point, I don't trust them.

[Sithara007]

We can see the growth of the market after the adoption of Paypal, so we can see that it has a great effect on the market when one company adopts cryptocurrency, and since Paypal is being used as an online paying service and can be used all around the world, there are lots of people who knew what bitcoin is. This really helps to spread the good use of bitcoin and to prove to them that it is not a scam. As of now, Visa is also trying to adopt bitcoin, another big company will adopt it, let us see what will happen after that.

PayPal has proved that the glass ceiling can be broken and Bitcoin can be integrated with mainstream payment processors. And this will encourage other mainstream businesses such as Visa to venture in to the cryptocurrency sector. But 2021 is going to be every crucial, because the actual outcome of the PayPal adoption will be known only by then. Once it is confirmed as a success, more and more companies will venture in to cryptocurrency.

[mersal]

Paypal's adoption of crypto is good for the whole community. The current bull run is one of the few good stuff in 2020.

But I would never ever trust PayPal to buy *and keep* any coins there. I had problems with eBay/PP and frozen account year ago and from that point, I don't trust them.

FYI, you can't withdraw your cryptocurrency from your paypal account, you can either sell or buy it but you should keep it in their wallet only. So don't go to PayPal if you are actually wanted go keep your coins in your wallet, existing exchanges are better place to buy, once you bought simply move it to your wallet.

[AndySt]

PayPal has proved that the glass ceiling can be broken and Bitcoin can be integrated with mainstream payment processors. And this will encourage other mainstream businesses such as Visa to venture in to the cryptocurrency sector. But 2021 is going to be every crucial, because the actual outcome of the PayPal adoption will be known only by then. Once it is confirmed as a success, more and more companies will venture in to cryptocurrency.

If integration into the main payment systems is expressed in the form of bitcoin transactions through the internal PayPal system, then I am not sure that this is exactly breaking the glass ceiling. I agree that the use of such a huge payment system as PayPal played a very big role in the growth of the exchange rate and, accordingly, the capitalization of bitcoin, but the bitcoin transaction system itself seems to be left out and I think this may happen in the case of other payment systems. I'm afraid that no matter what happens, major payment systems will digest bitcoin and then put it on the back burner, thereby almost destroying the competitor.

[Sithara007]

PayPal has proved that the glass ceiling can be broken and Bitcoin can be integrated with mainstream payment processors. And this will encourage other mainstream businesses such as Visa to venture in to the cryptocurrency sector. But 2021 is going to be every crucial, because the actual outcome of the PayPal adoption will be known only by then. Once it is confirmed as a success, more and more companies will venture in to cryptocurrency.

If integration into the main payment systems is expressed in the form of bitcoin transactions through the internal PayPal system, then I am not sure that this is exactly breaking the glass ceiling. I agree that the use of such a huge payment system as PayPal played a very big role in the growth of the exchange rate and, accordingly, the capitalization of bitcoin, but the bitcoin transaction system itself seems to be left out and I think this may happen in the case of other payment systems. I'm afraid that no matter what happens, major payment systems will digest bitcoin and then put it on the back burner, thereby almost destroying the competitor.

Right now, I would say that internal transactions through the PayPal platform is better than direct payments with Bitcoin, as it doesn't involve huge transaction fee and lengthy delays (of up to 1 hour). It is just like other third party payment processors such as BiyPay. For those who want to make direct transactions with Bitcoin, they can still do that with their online BTC wallet.

[Twinkledoe]

Paypal's adoption of crypto is good for the whole community. The current bull run is one of the few good stuff in 2020.

But I would never ever trust PayPal to buy *and keep* any coins there. I had problems with eBay/PP and frozen account year ago and from that point, I don't trust them.

FYI, you can't withdraw your cryptocurrency from your paypal account, you can either sell or buy it but you should keep it in their wallet only. So don't go to PayPal if you are actually wanted go keep your coins in your wallet, existing exchanges are better place to buy, once you bought simply move it to your wallet.

Yes, the way PayPal does crypto dealings is quite different. I hope those newbie users from their platform will not be disappointed on how they are introduced with crypto, and think that it is how crypto dealings is done. But it is a good introduction for them, and they may later on realize that crypto transaction outside PayPal is way better. So bottomline, it is already a good introduction for them.

[Vishnu.Reang]

Yes, the way PayPal does crypto dealings is quite different. I hope those newbie users from their platform will not be disappointed on how they are introduced with crypto, and think that it is how crypto dealings is done. But it is a good introduction for them, and they may later on realize that crypto transaction outside PayPal is way better. So bottomline, it is already a good introduction for them.

It's true. Few of the experienced users are using PayPal for dealing with their cryptocurrency. But for those people who have faced difficulty in purchasing and holding cryptocurrency on their own, PayPal provides a good alternative. When the use cryptocurrency through the PayPal platform, they don't need to worry about the legality or security, as PayPal is responsible for these aspects.

[Spaffin]

Yes, the way PayPal does crypto dealings is quite different. I hope those newbie users from their platform will not be disappointed on how they are introduced with crypto, and think that it is how crypto dealings is done. But it is a good introduction for them, and they may later on realize that crypto transaction outside PayPal is way better. So bottomline, it is already a good introduction for them.

It's true. Few of the experienced users are using PayPal for dealing with their cryptocurrency. But for those people who have faced difficulty in purchasing and holding cryptocurrency on their own, PayPal provides a good alternative. When the use cryptocurrency through the PayPal platform, they don't need to worry about the legality or security, as PayPal is responsible for these aspects.

In any case, the PayPal service is very interesting, but I am more interested in the possibility of purchasing various goods on sites using cryptocurrency through paypal. Of course, I can only do this on foreign sites, but not in my country. PayPal only provides national currencies and I don't understand why such restrictions.

[fillippone]

The good momentum for PayPal  is still strong:




They have beaten the record levels touched in November.
Just remember this service by PayPal is only at the beginning: you are basically hodling a Bitcoin CFD, you cannot even send this to other PayPal user.
Just wondering what will happen when they will become a fully fledged gateway.

[Prince Malik]

Paypal's adoption of crypto is good for the whole community. The current bull run is one of the few good stuff in 2020.

But I would never ever trust PayPal to buy *and keep* any coins there. I had problems with eBay/PP and frozen account year ago and from that point, I don't trust them.

FYI, you can't withdraw your cryptocurrency from your paypal account, you can either sell or buy it but you should keep it in their wallet only. So don't go to PayPal if you are actually wanted go keep your coins in your wallet, existing exchanges are better place to buy, once you bought simply move it to your wallet.

Yes, the way PayPal does crypto dealings is quite different. I hope those newbie users from their platform will not be disappointed on how they are introduced with crypto, and think that it is how crypto dealings is done. But it is a good introduction for them, and they may later on realize that crypto transaction outside PayPal is way better. So bottomline, it is already a good introduction for them.

This is a very important point because many people that didnt use crypto will try it through paypal and i really wish that they will understund that the crypto services given by paypal is not what crypto really is...wish that paypal also will make some explanations about crypto fore those who will try it through thrir platform

[Sithara007]

In any case, the PayPal service is very interesting, but I am more interested in the possibility of purchasing various goods on sites using cryptocurrency through paypal. Of course, I can only do this on foreign sites, but not in my country. PayPal only provides national currencies and I don't understand why such restrictions.

As far as I know, you may be able to do this by mid-2021, when PayPal will launch their full service with cryptocurrency. But there is a catch though. From what I heard, this feature will be available only for the users from the United States. In case you are residing outside the US, then I guess you need to wait for some more time, to purchase anything with PayPal Bitcoins.

[verita1]

According to the PayPal faq on its website, it indicates what is the first objective when offering its services with cryptocurrencies.

In this first stage, PayPal seeks to teach its users to buy, sell and hold cryptocurrencies in its app. So that then they are ready to the second stage and buy items in their network of merchants with cryptocurrencies.

https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398?app=searchAutoComplete

[fillippone]

It is obvious that PayPal took a very gradual and prudent approach in enabling clients doing stuff with their cripto. For the moment they are even more restrictive than Revolut, that allows the transfer of cryptos in the platform (off-chain).

I am sure they will proceed down the road, even this will imply a more effective KYC on their clients.

[fillippone]

Quite unexpected news on the PayPal Front:

Crypto firm BitGo touts record assets as PayPal deal falls through

In October, rumours swirled that PayPal was poised to acquire BitGo, one of the country's oldest cryptocurrency firms. That deal will not happen, according to multiple sources, and BitGo is now charting a new path.

For sure PayPal business has been increasing lately:



this surge in trading volumes might have turned PayPal Execs elsewhere.

[bakasabo]

Quite unexpected news on the PayPal Front:

Crypto firm BitGo touts record assets as PayPal deal falls through

In October, rumours swirled that PayPal was poised to acquire BitGo, one of the country's oldest cryptocurrency firms. That deal will not happen, according to multiple sources, and BitGo is now charting a new path.

Been using BitGo for few years and was disappointed with service they provide. Been a PayPal user for ages and had issues with them (not crypto related). The news are the second *ding-dong* for me and I would consider moving funds from BitGo in a nearest future.

Sorry for a newbie question, but where is the magic button to buy crypto on PayPal? I have a button "add currency", but I can add only fiat.

[Vishnu.Reang]

Sorry for a newbie question, but where is the magic button to buy crypto on PayPal? I have a button "add currency", but I can add only fiat.

That option is available only to select users in the United States. If you are not an US citizen, then probably you need to wait for a few months (or even years). And even for the US users, the functionalities are limited right now. They are only allowed to buy and sell cryptocurrency. They can't withdraw their coins to a non-PayPal wallet, or make payments using PayPal BTC.

[exstasie]

Quite unexpected news on the PayPal Front:

Crypto firm BitGo touts record assets as PayPal deal falls through

Was it really unexpected? I recall Bitgo was the only name mentioned in the October report, but Paypal was reportedly looking at other potential acquisitions at that time, and they still are.

They probably low balled them, given Bitgo's lack of profitability.

Sorry for a newbie question, but where is the magic button to buy crypto on PayPal? I have a button "add currency", but I can add only fiat.

That option is available only to select users in the United States. If you are not an US citizen, then probably you need to wait for a few months (or even years).

They plan to roll out crypto services to "select global markets" the first half of next year:

At this time, buying and selling Crypto with PayPal is available in the U.S. (excluding Hawaii) and U.S. territories, and all trades must be executed in USD. We plan to expand this service to select global markets in the first half of 2021.

https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398?app=searchAutoComplete

Whether your country makes the cut, who knows? Some specifics would be good.

[aioc]

That option is available only to select users in the United States. If you are not an US citizen, then probably you need to wait for a few months (or even years). And even for the US users, the functionalities are limited right now. They are only allowed to buy and sell cryptocurrency. They can't withdraw their coins to a non-PayPal wallet, or make payments using PayPal BTC.

I'm sure they will add other territories as well PayPal will make a lot of money from adding more countries and more people that will engage in buying and selling Cryptocurrency in their platform, I don;t like how they implement trading in their platform it's very much centralize, people like to buy and withdraw the coins they bought so they can HODL and they want total control, something PayPal is not giving tot heir users.