PayPals Bitcoin is a scam

[Altcoinsintel]

They wouldn't accept any transfer inside or outside their wallet for security reasons. They treat it as investment but also purchaces using Bitcoin can be made from their network of merchants who are connected to paypal.
With this limitation of not allowing withdrawals it makes Bitcoin unusable as far as I'm concerned. Probably an attempt to tame it.

It means nothing to me to buy Bitcoin using Paypal. Paypal will always be a payments processor for fiat and as you don't even own this fiat as it can be taken away anytime Paypal wants. They did the same with Bitcoin and those that buy using paypal will not actually own any Bitcoin.

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[pixie85]

I somewhat agree and won't be using their service.

For us, bitcoiners with a little experience, there's no point buying coins that you can't move to your own wallet using PayPal, but this service is not for us and is not a scam.
It's made for PayPal users who don't have accounts on crypto exchanges yet and would never have.
Now they can get Bitcoins without doing any additional work and getting verified on some new platform.

[MCobian]

Paypal is a big platform with lots of users, there's no way they're doing a scam. What you explain in the opening post is not
an indication of a scam, but Paypal service is not optimal regarding Bitcoin. They have just announced that they have accepted
Bitcoin, so give them time to accept Bitcoin slowly. For now they may only accept purchases, sales and holding only on their
platform. But in the future Paypal will definitely change the rules, so give them some time.

[GDragon]

There are a lot of users on PayPal, so I doubt this platform is a scam. If you experience problems on that website, then calling PayPal as a scam is not good. Issues are natural and bare for any platform as they are only new in the world of crypto. It could be resolved by telling the customer service about your problem with them.

[Joel_Jantsen]

--snip--

You brought up good points there dude. However, there is a huge market for PayPal and so does traders who would think it would become a platform to exchange cryptos to their PayPal and from there, to their Bank Accounts. This is how it will be perceived. I wouldn't call it a scam as someone who'd read their entire terms and conditions will know what the platform will offer. I'm eager to see the threads "Help! Got Scammed by PayPal" popping up in the scam accusation section.

[FinneysTrueVision]

There are lots of people who want exposure to the price of bitcoin but are not interested in having custody of the asset. They don't want to have to worry about hacks. Their only motivation is to gain more profit in fiat and are using bitcoin as an instrument to achieve that goal. There is sufficient demand for custodial bitcoin so it is not really a scam. It is simply an investment where your only risk is the price going down.

[thesmallgod]

I read about it but I do not think a giant company like Paypal will want to take peoples bitcoin by telling them to deposit it on their system without giving them the opportunity to withdraw it. The situation might be because they are still in the early testing phase which means continuous development of their platform to enable crypto to be fully used is required. The fact that paypal will run a centralized bitcoin exchange does not make them a scam. There are many centralized platforms and they have their pros

[bryant.coleman]

I see a lot of baseless opposition directed at PayPal. They are not forcing anyone to use their services. You can ignore them, if you are not interested. And before shouting at PayPal, claiming that it is a scam, I would like to draw your attention to the hundreds of cryptocurrency exchanges which closed down all of a sudden, running the lives of large number of users. At least we are sure that the same won't happen with PayPal, since the deposits are insured.

[andytherbg]

paypal is good for mass adoption

[CryptopreneurBrainboss]

Most hate directed at paypal isn't because what they're doing is scammy in nature but due to other past experience fron the platform. Paypal adventuring into the crypto industry might just be the best time that happened to bitcoin in 2020 excluding the halving of block reward.

Paypal isn't a scam and the services they're offering isn't quite different from what other platforms are offering. With time I believe they (paypal) will bring in more utilities for their customers in regards to providing additional services to what they're currently offering.

Let's just give them time, you don't expect they just jump right into the industry and not take some time to test easily service than complicated ones like offering a wallet services for users to hold their coins.

[Sithara007]

Most hate directed at paypal isn't because what they're doing is scammy in nature but due to other past experience fron the platform. Paypal adventuring into the crypto industry might just be the best time that happened to bitcoin in 2020 excluding the halving of block reward.

Paypal isn't a scam and the services they're offering isn't quite different from what other platforms are offering. With time I believe they (paypal) will bring in more utilities for their customers in regards to providing additional services to what they're currently offering.

Let's just give them time, you don't expect they just jump right into the industry and not take some time to test easily service than complicated ones like offering a wallet services for users to hold their coins.

I am not a big fan of PayPal, but in this case I have to agree with your post. As per the statement from PayPal, right now they are in a testing phase. Full services for cryptocurrency users may be available only by mid 2021, and until then the functionalities may be restricted. At least when compared to the current bunch of cryptocurrency exchanges, the services being offered by PayPal seems to be better. 

[Francis Freeman]

After researching it , I think the while "buy Bitcoin on PayPal" is a scam at best , and could be something more sinister at worst. Basically , you cannot withdraw the crypto , which for me means that it isn't crypto at all. But after doing research , I found that you cannot EVEN PAY another person with it - you're simply buying a token that is linked to the Bitcoin price - what is the value of this ?

I believe that this could be an attack on Bitcoin - I discuss this in detail here : https://youtu.be/bApVhoTemGw

To recap :
- You cannot withdraw your Bitcoin
- You cannot Pay anyone ( ironic ) , so it can't even go to another PayPal account
- You dont own the keys

While all these points maybe true there is no doubt that it has increased thr amount of people owning Bitcoin. Just read in another thread that it has reached 85% binance volume in a month. Let's hope they implement these features soon.

[kotajikikox]

I read about it but I do not think a giant company like Paypal will want to take peoples bitcoin by telling them to deposit it on their system without giving them the opportunity to withdraw it. The situation might be because they are still in the early testing phase which means continuous development of their platform to enable crypto to be fully used is required. The fact that paypal will run a centralized bitcoin exchange does not make them a scam. There are many centralized platforms and they have their pros

I think the bonding is too young to be criticize and instead of making thread here and there why not directly address the involving company so things will be settle in right manner because the way we spread things like this?
it sounds like FUD again and not supporting this progress both in Crypto and PayPal users.Yeah there are something to be corrected but Don't addressed as scam because we have no proof of this as valid.
but it is also good that there are community member that concern about their co crypto users.

[adzino]

Nah, it's not a scam. It is how it is supposed to work. They already told us that you won't be able to send the coins to someone else or any other external wallet. All you can do is buy bitcoin from paypal, sell it back or hold it. You can also spend your coins buying from sites that accept paypal as payment option.
So how is this a scam? It is not like they are stealing from you or anything. I know its a shitty way to own bitcoin (you don't even own those since you don't have access to the keys) but don't go screaming scam if they aren't.

[witcher_sense]

PayPal is far from being a scam; it is a reputable company that revolutionized online payment systems and gave us the ability to send and receive payments in a very convenient manner. We can't deny that. Bitcoin, on the other hand, has also revolutionized the way of making transactions, and it doesn't need any company because it exists outside any centralized systems. Bitcoin poses a threat to such companies as Paypal; it is their direct competitor that has many interesting characteristics and therefore attracts more and more people, companies, institutional investors, and even governments. Paypal decided not to fight it but adopt it in a form that doesn't contradict PayPal policies. PayPal version of bitcoin is a perfect solution for those who don't need bitcoin per se but who are eager for the profits bitcoin can give in terms of the dollar or any other national currency. In other words, PayPal's bitcoin is not a scam, but bullshit.

[Lucius]

I'm quite surprised to see so much PayPal support coming from older members over here...

Don’t confuse support with some other things, because it’s not the same to say that the PP thing isn’t scam - but no one who understands what Bitcoin is will say that PP (at least at this point) gives its users a good crypto service. It is logical that if someone buys something in that case they have the right to fully dispose of their property - and when the service is available globally, maybe PP will at least allow the withdrawal of BTC. This would prove that they actually have real BTC in their possession and not to sell some virtual BTC.

On the other hand, I am surprised that many members of the forum think that the adaptation of BTC to society can pass without companies such as PP, banks, various funds and all other institutions. I look at this situation more from the perspective of a very good promotion of Bitcoin through the media, and also the fact that each of the 346 million PP users will find out about BTC. Each of them will be able to explore what BTC really is, so if they don't like the service provided by PP - they will register on some crypto exchange and buy BTC in the right way.

[milani]

After researching it , I think the while "buy Bitcoin on PayPal" is a scam at best , and could be something more sinister at worst. Basically , you cannot withdraw the crypto , which for me means that it isn't crypto at all. But after doing research , I found that you cannot EVEN PAY another person with it - you're simply buying a token that is linked to the Bitcoin price - what is the value of this ?

I believe that this could be an attack on Bitcoin - I discuss this in detail here : https://youtu.be/bApVhoTemGw

To recap :
- You cannot withdraw your Bitcoin
- You cannot Pay anyone ( ironic ) , so it can't even go to another PayPal account
- You dont own the keys

I understand your thoughts about all of these points you mentioned in your post. May be some your statements are a little bit exaggerated, because scam is very specific and with a narrower concept, comparing with the meaning that people imagine to themselves. But the sense of the Bitcoin on the PayPal wallet personally I do not see at all. What is the purpose for a person from it when the person can not manage his assets on his or her own view.

[dificanovi]

We really need to stop using the "scam" word as a sort of synonym to "bad service"; because obviously there's a HUGE difference between the two.

PayPal's cryptocurrency-related services are definitely very very limited, but it has been the same with Cash App in the past. The likeliness of what's going to happen is, it's a slow rolling out of features; because I'm pretty sure PayPal is totally aware that bitcoin is really hot right now, and it's smart for them(business wise) to take advantage of this hype and roll out their buy/sell feature asap.

yes you are right, it's not good we say something with the word '' SCAM '' we have to make sure everything is right, this can create slander which is very bad for bitcoin and paypal. I think paypal just needs time to fix this problem, and in the end we will all be able to buy bitcoin or sell it on paypal. I hope we all don't immediately think about the negative if a problem occurs, we better be careful and discuss the problem in order to get clarity and a solution to the problem.

[shield132]

We really need to stop using the "scam" word as a sort of synonym to "bad service"; because obviously there's a HUGE difference between the two.

PayPal's cryptocurrency-related services are definitely very very limited, but it has been the same with Cash App in the past. The likeliness of what's going to happen is, it's a slow rolling out of features; because I'm pretty sure PayPal is totally aware that bitcoin is really hot right now, and it's smart for them(business wise) to take advantage of this hype and roll out their buy/sell feature asap.

I absolutely agree with you, the word "scam" is far from PayPal and it's a shame to use these words together. It looks like PP seems to be a scammy company, similar of HYIP.

True story is that PayPal hasn't fully implemented bitcoin and cryptocurrencies into it's system. It's like a beta version at the moment, available only in the USA. At the moment, there are only these options available and it was clearly stated in articles and interviews that in 2021 they'll fully implement crypto and it's related services, so who to blame and why? At the moment all you can do is to hold virtual bitcoin and buy/sell it any time.

[CapGelatik]

talking about paypal scam of course it's nonsense, paypal will not be a scammer,
do you remember when paypal announced that Bitcoin was accepted on paypal ?,
yes, everyone is happy, paypal is not a stupid platform.