[2020-10-23]PayPal is eyeing a BitGo purchase

[cr1776]

PayPal is the first corporation to realize that cryptocurrency will be a big thing in the future, especially in the finance sector. BitGo is not a very large sized firm, and I suspect they are going after it as a test run. If the acquisition is successful, then they may acquire larger crypto businesses. And one more thing. I won't be surprised if PayPal acquires one or two major cryptocurrency exchanges in the distant future, and merge them with their main platform.

There were quite a large number of corporations who realized it years ago.  Overstock, Newegg, Coinbase, Grayscale among many others.  Acquisitions are important for some of the smaller companies to get funding to grow which should help the entire ecosystem.

And DooMAD - i think you are right about the "PayPal froze my account" stuff...no doubt that will happen.

I don't see why people would use PayPal as it is now to purchase bitcoin since it is locked into PayPal.  Hopefully they correct that issue eventually, but if they do, that is when I'd worry about the "frozen account" issue if someone sends it to an unapproved web site directly from PayPal.  e.g. gambling or some site that someone doesn't allow.

[gentlemand]

I don't see why people would use PayPal as it is now to purchase bitcoin since it is locked into PayPal.  Hopefully they correct that issue eventually, but if they do, that is when I'd worry about the "frozen account" issue if someone sends it to an unapproved web site directly from PayPal.  e.g. gambling or some site that someone doesn't allow.

Let's hope adoptees don't get their messages mixed. I can well imagine mindless druggists logging into Paypal thinking 'oh wow, no one can stop the bit coin, right?' and then lasting a few seconds before their door is booted in.

[cr1776]

I don't see why people would use PayPal as it is now to purchase bitcoin since it is locked into PayPal.  Hopefully they correct that issue eventually, but if they do, that is when I'd worry about the "frozen account" issue if someone sends it to an unapproved web site directly from PayPal.  e.g. gambling or some site that someone doesn't allow.

Let's hope adoptees don't get their messages mixed. I can well imagine mindless druggists logging into Paypal thinking 'oh wow, no one can stop the bit coin, right?' and then lasting a few seconds before their door is booted in.

Yeah.  If I were a conspiracy theorist, I might think that is the goal given the way that PayPal has restricted it.  Get people in and then turn them off to it.  I know some people aren't that dumb to be fooled, but enough?

On a related note, my cousin (finally) asked me about it a few months ago even though I had initially discussed it with him Thanksgiving of 2010.  He was going to do it "eventually" with Coinbase.  You can lead a horse to water but can't make him drink.  Then when the PayPal news broke he said "So, I guess PayPal is even an easier way to buy bitcoin?"  I had to tell him (a) as of now it isn't transfer it out of there except by selling, and (b) if you don't have the private keys you are merely a creditor.  Coinbase at least he could buy and then transfer out eventually.   

PayPal will be a reasonable option once they allow outbound transfers.  Who knows if/when that will be.

[squatter]

No custodian is insured as far as I know. No insurer will do it. Certain places like Coinbase have insurance but only for their hot wallets.

I was researching BitGo and noticed they do provide a $100 million insurance policy where they act as qualified custodians, with the option to upgrade to a $500 million policy. This applies to cold storage.

Still anybody's guess what happens if every Bitgo customer requests a withdrawal.

I know BitGo is quite significant in terms of network transactions, but I would be very curious to know how much is actually in their sole custody. They do lots of multi-sig arrangements with their clients, especially exchanges, and they also offer self-managed custody where they only set up client infrastructure including BitGo API, but have nothing to do with custody itself.

[bbc.reporter]

I don't see why people would use PayPal as it is now to purchase bitcoin since it is locked into PayPal.  Hopefully they correct that issue eventually, but if they do, that is when I'd worry about the "frozen account" issue if someone sends it to an unapproved web site directly from PayPal.  e.g. gambling or some site that someone doesn't allow.

Let's hope adoptees don't get their messages mixed. I can well imagine mindless druggists logging into Paypal thinking 'oh wow, no one can stop the bit coin, right?' and then lasting a few seconds before their door is booted in.

It would be very difficult for mindless druggists to mistake bitcoins in Paypal from the real bitcoin unless there is a mindless vendor that accepts bitcoins in Paypal payments.

[gentlemand]

It would be very difficult for mindless druggists to mistake bitcoins in Paypal from the real bitcoin unless there is a mindless vendor that accepts bitcoins in Paypal payments.

Yup. There'll be plenty of them too. Paypal attracts scum wherever consciousness exists. This will pull in more of it. It'll really ramp up when you can withdraw the real deal which is why it may never happen.