PayPals Bitcoin is a scam

[maartenhaha]

Paypal released support for cryptocurrency on 21 October last and please note that PayPal is not a crypto exchange service before, so give them time to develop this service for the world crypto community, we almost enjoy it

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https://twitter.com/PayPal/status/1318930120523087873

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[Sultanar484]

I really don't think it's a scam, I believe it's a first trial step for PayPal and if they see some profit making opportunity they will take it and some more features for users will come later.

It is not scam. It is on testing step for the developers of Paypal. Soon they will announce for ready to use cryptocurrency service as they have promised to start in quarter one 2021. We need to wait patiently and give them time to be prepared for the next step.

[bearexin]

As most of the people here believe that this is not enough reason to call Paypal a scam as it's a huge company and by doing a scam like that it would ruin the entire company in minutes. So, I agree that is is not a scam. But for such a huge company it is not cool to add Bitcoin with very limited features. I mean if they wanted they could easily add bitcoin properly with all it's features. It will not be a big deal for them. But they added it with limited feature.

It is either they are testing it yet or they did not understand the bitcoin itself yet. They should have tested it everything at the beginning and added it with all it's features.

[Thavash]

OP here - so many of you seem to be unhappy that I used the word "scam". Here's why I am so skeptical.....

1) Right now , we all agree that the way that they've implemented this is not ideal. However many are optimistic that PayPals implementation will change to allow withdrawals. If and when that happens, I will be happy to say that I was wrong, but I'm waiting for that to happen.

2) Remember, Bitcoin was ignored and mocked for so long, but with the attention that its now receiving , those that stand to lose from it will start increasing their attacks on it. PayPals traditional business stands to be impacted in a big way by crypto including Bitcoin. If PayPal is smart , it will embrace Bitcoin which could be very good for them.

3) If Paypal / other institutions and governments start attacking Bitcoin after this recent resurgence, one way they'll do it is to convince users that they're using Bitcoin ( therefore riding the buzz ) while not actually giving them Bitcoin. This would both create fraction reserve inflation and slowly make the actual blockchain irrelevant , while the uninformed masses think they're getting in on the Bitcoin action.

4) If nothing changes, all PayPals "bitcoin" is,  is a number in their database, with absolutely nothing to do with Bitcoin or the blockchain itself ( as I've said in the video , where it's easier to explain than typing out all this ).

5) IF PayPals intentions are good, they implement the changes that we all want including withdrawals , then it would prove that they're NOT attacking Bitcoin , but embracing it. More importantly , Paypals Bitcoin platform could become the ULTIMATE LIGHTNING NETWORK , helping Bitcoin payments scale , but with the options to still withdraw and own your coins ( with that final transaction being recorded on the blockchain ).

Lets see what happens next......

[Wawa2013]

I have been using Paypal for a long time, so I really believe Paypal will not do anything that could damage its reputation. We cannot
blame Paypal for not allowing its users to withdraw Bitcoin. They do this must have their own reasons, we give time to Paypal to perform
services that they think are right. I believe all the rules they make regarding Bitcoin are temporary, do not rush to require Paypal to provide
the services that many people want.

Because I believe they are more experienced in the digital payment world, so Paypal knows what is best for their platform. At least there has
been great progress Paypal has finally accepted cryptocurrency, if there are still shortcomings, because this is still in the early process of adoption.

[NeilLostBitCoin]

I have been using Paypal for a long time, so I really believe Paypal will not do anything that could damage its reputation. We cannot
blame Paypal for not allowing its users to withdraw Bitcoin. They do this must have their own reasons, we give time to Paypal to perform
services that they think are right. I believe all the rules they make regarding Bitcoin are temporary, do not rush to require Paypal to provide
the services that many people want.

Because I believe they are more experienced in the digital payment world, so Paypal knows what is best for their platform. At least there has
been great progress Paypal has finally accepted cryptocurrency, if there are still shortcomings, because this is still in the early process of adoption.

Me either, I'm using PayPal for good and for a long time but still don't have any problem with that, maybe this new feature is of course a new one and needs development, maybe soon they will open that withdraw option, PayPal didn't scam people I think, it just that maybe this thing is included in their toc, or disclaimer but we didn't notice it.

[fauzan123]

Maybe we can not take the decision to call Paypal a scam. We need to wait a bit more. Let's see what feature Paypal will bring in the near future. Though I am not going to use Paypal for using Bitcoin. I prefer a noncustodial Wallet, not Paypal.

This product is still new to paypal, of course there will be many shortcomings that occur. Actually, this only takes time to be able to see how developments will occur in bitcoin paypal going forward.

[Xxmodded]

Maybe we can not take the decision to call Paypal a scam. We need to wait a bit more. Let's see what feature Paypal will bring in the near future. Though I am not going to use Paypal for using Bitcoin. I prefer a noncustodial Wallet, not Paypal.

This product is still new to paypal, of course there will be many shortcomings that occur. Actually, this only takes time to be able to see how developments will occur in bitcoin paypal going forward.

We can't bigger company currency like PayPal is scam because they have working for long time and become most currency digital payment used by many people around the world as way for online transaction and EBAY have adopt PayPal for long term ago as currency payment, just little waiting and get their announcement how about rule of purchase bitcoin with PayPal, what about price the same with other exchange market for buying or selling, just price make by PayPal it self without checking demand and supply. I think why you waste your time with purchasing bitcoin trough PayPal, not available for your country with local exchange market to buy bitcoin and save it, or do you wanna try with new payment way to buy bitcoin with PayPal.

[DarkDays]

Too far to say that paypal is a scam with bitcoin in it, because we all know the legality used by paypal.

There is often a crucial distinction between "legality" and "morality".  Just because it's legal, doesn't mean we have to find it acceptable.

That's right. Just because we do not agree with how PayPal is dealing with and portraying BTC doesn't mean they're doing it illegally.

I'm still of the opinion that any custodial service dealing with IOUs and not operating full-reserve is effectively a scam.  Most people just don't realise it yet.  This applies to any exchanges or webwallets operating fractional reserve, not just PayPal.

I wouldn't go so far as saying that any IOUs not operating of full-reserves are scams, I get that it is far from ideal but surely there would have been some audits in place to ensure that whatever they estimate (even if it is not held in reserve) is something that the business plan can cover. It is true though that some projects take advantage of the system which is why fully-backed up assets operations are being favoured over the alternative.

That said, no I do not in any way approve of how PayPal is dealing with BTC, it still keeps all the people who use it in a blindspot.

[Tahid12]

mentioned, all is true. If anyone buy bitcoin from Paypal, they won't own the key even can't transfer bitcoin but those aren't enough reason to considered paypal's bitcoin as scam.paypal giving people oppourtunity to use bitcoin though it.public can trade there, they can buy bitcoin at ow and sell it with high. Thus people can increase their fund on paypal platform.and i read some article where i found, Paypal soon going to allow bitcoin payment system.hope others issues will be solved gradually

[elisabetheva]

mentioned, all is true. If anyone buy bitcoin from Paypal, they won't own the key even can't transfer bitcoin but those aren't enough reason to considered paypal's bitcoin as scam.paypal giving people oppourtunity to use bitcoin though it.public can trade there, they can buy bitcoin at ow and sell it with high. Thus people can increase their fund on paypal platform.and i read some article where i found, Paypal soon going to allow bitcoin payment system.hope others issues will be solved gradually

maybe because it is still new being done and of course there will always be deficiencies that occur and must be tolerated and with developments it will certainly be updated and addressed. we know that paypal may still be new to the crypto field so there will always be updates even though they have experience with trading. but for me what happened at paypal is just an explanation that bitcoin is recognized, because i feel like not using paypal because for me it is not and not the best way at this time

[Jonyshake71]

In my opinion, Paypal isn't scam but they provided very worst service.they close accounts for simple reason even without reason. Those 3 points you mentioned, i can't disagree with you but you should understand that, they have some limitation too!! It isn't possible for any platform to enable all features of crypto so soon while they just adpot it! So should wait more for their nex annonucment about those facts

[CarnagexD]

A bit disappointed about it honestly, but it's too far from a scam to be considered a scam. For instance, there's the fact that you can still convert it to dollars which you can then withdraw. And the fact that coinbase doesn't make you own the keys too yet became one of if not the biggest crypto app in the west says a lot about the paypal bitcoin feature. There's the things to get around.

In my opinion, Paypal isn't scam but they provided very worst service.they close accounts for simple reason even without reason. Those 3 points you mentioned, i can't disagree with you but you should understand that, they have some limitation too!! It isn't possible for any platform to enable all features of crypto so soon while they just adpot it! So should wait more for their nex annonucment about those facts

Exactly. They value privacy so much thinking it will help fend the hackers off yet still experience yearly cases of hacking anyway. The feature is still in its infancy and would include features that would improve thebquality of buyimg bitcoin in the website.

[Sithara007]

In my opinion, Paypal isn't scam but they provided very worst service.they close accounts for simple reason even without reason. Those 3 points you mentioned, i can't disagree with you but you should understand that, they have some limitation too!! It isn't possible for any platform to enable all features of crypto so soon while they just adpot it! So should wait more for their nex annonucment about those facts

Yes.. this is the biggest risk while using a PayPal account. Every now and then, they will make your account "limited" and for an uncertain period you will lose access to your funds which are stored in it. In most cases, eventually you may get back the access in a few weeks or even months, but this can leave the user very frustrated and bitter. And the addition of cryptocurrency to the PayPal account is definitely not going to make matters any more easier.

[judeafante]

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

And I would like to add there is no transaction hash if you buy or sell, it's like they twisted how Bitcoin works, newbies will be disoriented if they first use Bitcoin on PayPal and then they acquire more of it through peer to peer, PayPal changed the definition of Cryptocurrency by integrating it in their platform.

[Lorence.xD]

I have been using Paypal for a long time, so I really believe Paypal will not do anything that could damage its reputation. We cannot
blame Paypal for not allowing its users to withdraw Bitcoin. They do this must have their own reasons, we give time to Paypal to perform
services that they think are right. I believe all the rules they make regarding Bitcoin are temporary, do not rush to require Paypal to provide
the services that many people want.

Because I believe they are more experienced in the digital payment world, so Paypal knows what is best for their platform. At least there has
been great progress Paypal has finally accepted cryptocurrency, if there are still shortcomings, because this is still in the early process of adoption.

The only reason that I can think of is that they are doing this to prevent money laundering in their platform, which is reasonable but to hold your customers account just because they have bitcoin in there is definitely something. I like the service of Paypal because they are the most reliable International payment system in my country but I think that they are still a youngling when it comes to integrating it in their payment system. Or a far more sinister which I hope is not really the case which is they are trying to find a way to screw over the people.

[iTradeChips]

Well, I think the approach that you can do here is if you are not really comfortable with the service, gauge it first using a small amount of Bitcoin and see if you can use the service to your liking or not. Immediately calling it a scam does not really do justice here and it only makes you look like a noob to the eyes of the Bitcoin veterans. As many people do in the real world, they put a small amount of money or cryptocurrency in the wallet and try to use it and see if they are satisfied with the service.

[Inspiron14]

there is no scam word, the best paypal platform in the world, and bitcoin is the most popular crypto currency,
of course far from the word scam, I know if the price has reached the top, then the FUD will continue to be spoken from people,
therefore don't be consumed by Fudder!

[Slow death]

And the addition of cryptocurrency to the PayPal account is definitely not going to make matters any more easier.

See the price increase, it clearly shows that people are not looking at any disadvantage of paypal, on the contrary most people just believe that paypal is bringing a great demand to the bitcoin market and that with that paypal will not go freeze people's accounts as easily as in the past. this is a "game" where paypal wins and bitcoin users also win. I see no reason for people to be too concerned about the cases of freezing funds for 180 days that paypal does.

[kentrolla]

Do you mean one of biggest payment giant is a scammer? Spreading such rumours will not impact the market or BTC, PayPal has a strong reputation across the world and has a wide range of users you can't entertain by spreading such news in this forum.

PayPal service providers are very genuine to their users and everyone aware of that, I feel sorry for you if you went through some misconception kind get support from the cs team.