Payments Giant Paypal Says Its Customers Can Now Buy and Sell Bitcoin

[mickaelmosse.cryptoadvise]

On October 23th, 2020, Payments giant Paypal had said its customers can now buy, sell and hold bitcoin and other virtual coins with the company’s online wallets.
The company also says its customers will able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021.

A report quotes the company’s President and Chief Executive Dan Schulman saying they hope “the service will encourage global use of virtual coins and prepare its network for new digital currencies that may be developed by central banks and corporations.”

According to a report, U.S. account holders can start buying and selling cryptocurrencies in “the coming weeks” while there are plans to expand “this to Venmo and some countries in the first half of 2021.”

The report adds that Paypal, which has secured the first conditional cryptocurrency license from the New York State Department of Financial Services (NYDFS), “will initially allow purchases of bitcoin (BTC) and other cryptocurrencies called ethereum, bitcoin cash, and litecoin.” Paypal has partnered with Paxos Trust Company to offer the service.

I think that the payments giants’ entry is likely to spark the wider adoption of cryptocurrencies given its wide reach.
According to the report, Paypal “has 346 million active accounts around the world and processed $222 billion in payments in the second quarter.”

And you, what do you think of Paypal’s entry into crypto space?


*Source of information Mickael Mosse Blog

[fladnaG]

But transaction fees are still too high, I think. Although I haven't used this feature yet.

[gantez]

Yes I think the news have been on and I have read a thread here on that, I may not be able to locate now but it is a cheering information. We hope that it will help bitcoin to leverage on it for greater importance and use.

[BrewMaster]

it definitely is the type of news that could bring some hype to bitcoin market for a little while but the importance of the news is very little because it only becomes important when they allow their users to dump their paypal dollar to buy bitcoin and then withdraw those bitcoins to their cold storages. otherwise when they only allow them to store coins in their paypal wallet and never cash out, that doesn't mean anything.

[asus09]

it definitely is the type of news that could bring some hype to bitcoin market for a little while but the importance of the news is very little because it only becomes important when they allow their users to dump their paypal dollar to buy bitcoin and then withdraw those bitcoins to their cold storages. otherwise when they only allow them to store coins in their paypal wallet and never cash out, that doesn't mean anything.

There is an opening for scammers to make fake coins by using PayPal, because currently PayPal can buy coins using their platform, there will be a variety of coins that are likely to be scam coins, in fact many PayPal users don't necessarily know in detail about the coins that can be purchased. with PayPal whether it's good or not. Just take my mind now why  PayPal allowed this transaction and give chance for scammer how to created new coin and purchase trough PayPal as method payment. I hope PayPal could know when getting scam coin not allowed for purchasing use PayPal.

[rdbase]

It has been discussed about how this can only be good for paypal and it has no intention of just to allow bitcoin to be "more universally known to the entire world". It's a corporation so of course:
It has a hidden agenda.
There has been speculation that it once it has everyone virtually tagged on their platform as having an interest and now know how to buy and sell their cryptocurrency, they will then release their own cryptocurrency sort of like what facebook tried to do and fail on their platform. Due to not having this cryptocurrency license they had to have to operate in the states.
They are just learning from facebook's failure and starting round 2 or how to bump off bitcoin from it's throne and crown their own coin as the only one to use on their platform.
All corporations are doing things for themselves and have their customers interests as second to theirs.
That is a given in this scenario of cryptocurrency usage of who will come out on top in the end.

[jossiel]

Not a very new news.

There is an opening for scammers to make fake coins by using PayPal

I remember when Telegram has announced the TON and even Facebook's Libra. There were scammers that have used those moments to make their fake coins and rename it as it is to fool investors and make them believe that it's the actual coin that they are investing.

But soon, if a scammer ends to make their fake coins to take advantage of the hype, PayPal will eventually notice it and will make an announcement to warn users.

[CODE200]

Bitcoin price is stable at around $13k, it's mainly due to the Paypal news, Paypal will make bitcoin go over 20k this year. If there is a couple of more retail or online company offer, bitcoin can easily reach 25k by the end of this year. However, the US election result also might be a factor tonight, Let's see what happen.

Not sure of this one but I doubt that is the only reason.
The result of the election won't probably affect the market price of cryptos. Thete might be indirect effects such as if the elected will make actions concerning Bitcoin whether to support it or not, things of such. IMO the hype of what PayPal did has already affected the price of Bitcoin when it managed to get closer to $14k mark recently. Exposure on this industry is indeed good but I doubt that its reall influence will be felt this year knowing that they are still on their progress of testing.

[DarkDays]

it definitely is the type of news that could bring some hype to bitcoin market for a little while but the importance of the news is very little because it only becomes important when they allow their users to dump their paypal dollar to buy bitcoin and then withdraw those bitcoins to their cold storages. otherwise when they only allow them to store coins in their paypal wallet and never cash out, that doesn't mean anything.

I agree that having Paypal back up the system at least for buying and storing on their wallet is going to momentarily stir up some fluctuations in the BTC market, perhaps even help it jump over the new resistance point.

However, the point made earlier about this being a small step towards increasing awareness and adoption of crypto makes total sense. There won't be much long term benefits of this news if Paypal doesn't allow transaction flows between fiat to BTC and withdrawal as crypto.

In line with this and a more optimistic mind set would probably say that this is only a matter of time as loading too much at a time might scare off the 'average' customer. I suppose we will have to wait and see.

[Lhaine]

Yes I think the news have been on and I have read a thread here on that, I may not be able to locate now but it is a cheering information. We hope that it will help bitcoin to leverage on it for greater importance and use.

You can find many thread regarimding that news in economics section I remember I found in that sections k before.

But transaction fees are still too high, I think. Although I haven't used this feature yet.

They are still new so I guess they can reduce that fee in case they see that they can get a lot of money out of it asking for too much fees will not benefit them if they plan to buy and Bitcoin and crypto in their platform. If they will continue asking for high fees users will move to other platform instead them and that's not good for them.

[Pmalek]

There is an opening for scammers to make fake coins by using PayPal, because currently PayPal can buy coins using their platform, there will be a variety of coins that are likely to be scam coins, in fact many PayPal users don't necessarily know in detail about the coins that can be purchased.

How can their be fake coins? You are buying some of the top cryptocurrencies on the market, not fresh ERC-20 tokens created on Ethereum. You have no interaction with buyers/sellers. You are buying the coins through PayPal's service provider Paxos, so I don't understand where users can get fake coins from. 

[bitbunnny]

It was the matter of time. PayPal is following trends in finance industry and wants to keep the leading position as a payment platforme so it was expected. However I expect to see some usual problems at the beginning so let's wait to see how users will accept that possibility, so how successful it will become.

[dothebeats]

The effects of this may not be as impacting as others projected, but the awareness it might bring on some people regarding the existence of bitcoin will be monumental, and could even be pivotal for a charge towards adoption in the coming years. Most news and discussions are only concerned about the short-term effects of PayPal's decision, but not everyone realized that it could be the bridge that somehow fills the gap between awareness and ignorance of what bitcoin really is. PayPal may not be the direct avenue of this surge in the coming years but it's a great start nonetheless.

[romero121]

As of now what paypal does is just an addition of service for bitcoin. The same has been taken to discussion on different dimensions. As per my knowledge about paypal and bitcoin, there is more chances of interconnected functioning but the same won't help with large scale adoption. What's been happening with the PayPal acceptance is a promotion for bitcoin. Yesterday paypal too increased the buying/selling limit to $15000 as large scale individual investors are showing interest.

[Ryker1]

Well, in my opinion, -- it is still good news knowing that Paypal has started accepting bitcoin transactions and it only signifies that in no time global adoption will be attained by bitcoin and other cryptocurrencies. Furthermore, when it comes to transaction fees we know for a fact that it will be subjected to Paypal's policy that may vary depending on the bitcoin's value and the amount on which you will be transacting. For now, I just want to celebrate this another milestone that bitcoin has reached even though Paypal is a centralized company and it brings massive awareness to those who had Paypal account.

[metenjean]

Well, in my opinion, -- it is still good news knowing that Paypal has started accepting bitcoin transactions and it only signifies that in no time global adoption will be attained by bitcoin and other cryptocurrencies. Furthermore, when it comes to transaction fees we know for a fact that it will be subjected to Paypal's policy that may vary depending on the bitcoin's value and the amount on which you will be transacting. For now, I just want to celebrate this another milestone that bitcoin has reached even though Paypal is a centralized company and it brings massive awareness to those who had Paypal account.

I am happy when PayPal accepted bitcoin but why have to make us busy to buy bitcoin and altcoin trough PayPal method? every country have local exchange market support to deposit money and buy bitcoin, if you use PayPal you get double fee for buying bitcoin or altcoin. Have little risk with PayPal when you buy some thing, I ever use PayPal when active investing with investment project some time need to upload our document for success sending or receiving money from PayPal. When your PayPal got problem like limited permanent you must waiting more than six moths to withdraw back your fund, do you have planning for buying bitcoin and altcoin with PayPal?

[Emitdama]

PayPal has around 300 million users? Lol, I used to think that they had like a billion. Anywhere, will they allow people to send cryptocurrencies like the normal we use; like sending Bitcoin from one address to another, or is it just going to be some kind of buying and selling and HODL and then convert to USD? Or maybe a transaction that would be among PayPal users?

It would be great if they will allow PayPal users to purchase and send crypto to people that are using other crypto wallets like Coinbase and Blockchain and the rest of them, if not, I wouldn’t like it so much.

[Akiko]

PayPal seems to be very serious about their decision, and are serious about crypto and the development of this direction. But will people be interested in it?

It's depend on the users of that platform more users means more potential customer  in their platform.

Currently paypal has 305 million active users
source : https://en.m.wikipedia.org/wiki/PayPal#:~:text=As%20of%202020%2C%20PayPal%20operates,funds%20in%2025%20currencies%20worldwide.

Do you have any idea what will happen if at least 1% of it's users  tried to buy or want to own Bitcoin and use their platform to buy it?It will add more demand to Bitcoin and other crypto currency they need to grab that opportunity if they want to be one of the business earn from crypto .

[sotoshihero]

PayPal seems to be very serious about their decision, and are serious about crypto and the development of this direction. But will people be interested in it?

It's depend on the users of that platform more users means more potential customer  in their platform.

Currently paypal has 305 million active users
source : https://en.m.wikipedia.org/wiki/PayPal#:~:text=As%20of%202020%2C%20PayPal%20operates,funds%20in%2025%20currencies%20worldwide.

Do you have any idea what will happen if at least 1% of it's users  tried to buy or want to own Bitcoin and use their platform to buy it?It will add more demand to Bitcoin and other crypto currency they need to grab that opportunity if they want to be one of the business earn from crypto .

Good point sir, this PayPal's move is an additional adoption of crytpcurrency particular the bitcoin. We are glad that many institutions and looking to include bitcoin in their services, this is really admirable. Paypal  is popular money transfer platform and adding bitcoin will boost their transactions too. Its a win win  move to them also.

[goldade]

This is especially good for the crypto community. PayPal adopting bitcoin is a huge leap in the mainstream adoption of bitcoin.
PayPal is, according to OP, going to make it possible for its users to shop with bitcoin from their merchants. This is really great as it shows the true potential of bitcoin.
One of the limiting factors to the adoption of bitcoin in the mainstream world is the fact that many people believe bitcoin can't be spent, especially on day-to-day goods and services and it is noteworthy to know that this development by PayPal will solve the problem.