PayPal is sending the wrong message

[Altcoinsintel]

Paypal has recently announced the offer of Bitcoin in their platform but in a very restrictive way.
Recently a friend informed me that he bought Bitcoin in PayPal and I was glad about it, but what was the impression of a beginner about Bitcoin? He told me he sold it after making a profit and didn't need it.

I tried to explain what he should be doing. I told him to buy a hardware wallet and transfer the Bitcoin there and tried to explain about private keys, public addresses, and passphrase, how Bitcoin is giving him financial freedom and why it is important to own the private key.

He was confused with that and told me that Bitcoin bought inside Paypal, only exists in Paypal and he can buy or sell and make some profit from trading. The only thing he could do except buying or selling is to use the Bitcoin bought in the Paypals merchant network which he could do with dollars and didn't need to switch to Bitcoin.
His first impression was that Bitcoin wasn't even needed at all. And he is right. It doesn't have a use case if it is trapped inside an app and you can't move it.

The essence of Bitcoin is removed this way as Bitcoin doesn't belong to the user but to Paypal. Paypal can even give you a token instead of Bitcoin and tell you that it is Bitcoin.

This is not Bitcoin that Paypal is offering but perhaps it is something similar to Grayscale Bitcoin Trust stock. It should be classified as such, a share of Bitcoin with restrictions.

[AB de Royse777]

Sad!
So those frauds bitcoinDOTcom, Paypal are using the name of Bitcoin to stay in the completion with their business?

Let's call it Paypal coin not Bitcoin in Paypal. This Paypal coin is just some numbers coming from their database, and they can issue it whenever and however they want. This is interesting. In other words they are printing currency and the governments things it's okay? Paypal is new FED?

This seems another One coin or bitconnect.

And, this is another example that the current currency system is a joke and the majority people in the world do not even know about it. For them this is something very normal. In the future for a piece of bread one may need to have a full bag of notes.

[Charles-Tim]

Normally, I know how PayPal do block users account, also now supporting bitcoin but providing custodial service, which means it is not my coin, PayPal go extra mile than other services like exchanges that are also offering custodial services in a way the bitcoin you bought can not be sent to outside the PayPal's account, it remains there, you can only buy it, you will have to sell it there because you can not send it, you actually not having any bitcoin with PayPal, you have only numbers with them. PayPal has proven to be manipulating people and compromising privacy but now also in a way people have no bitcoin he can make use of by sending it to people.

Only novice will make use of PayPal to buy bitcoin when we can just stay noncustodial, but people are just ignorant and not ready to learn but like choosing what is supported by government, and custodial services fooling them in a way they will not have any privacy. I do not know the reason why anyone should make use of PayPal crypto service.

[mk4]

Surprise surprise, PayPal only wants to take advantage of the bitcoin hype for them to be able to earn through the fees; hence why their product seems to be really really incomplete and rushed.

Also, I'm pretty sure they don't care about whatever "message" there is. What matters is revenue.

[Jating]

It's pretty obvious by now, Paypal used to be against bitcoin, because they see it as competition, but as time goes by, it's becoming a threat that the best way is to take advantage of it by joining the bandwagon. But we all know that it is centralised by all means.

And now they are regarded as the new catalyst  for the next bitcoin bull run, win-win situation for them. They will definitely make a ton of money here. So definitely, it's better to just buy bitcoin and hold it on our wallet instead of using other third party platform like Paypal.

[pilosopotasyo]

This is not Bitcoin that Paypal is offering but perhaps it is something similar to Grayscale Bitcoin Trust stock. It should be classified as such, a share of Bitcoin with restrictions.

I would not even think of using Paypal to buy and HODL my Bitcoin it's against what Nakamoto teaches us that not your key not your coin philosophy, what we've seeing on PayPal are only figures, we don't even sure if there are blockchain records in all our transaction, PayPal is not the right way to start someone to Cryptocurrency, I will not recommend my friends who are new in Cryptocurrency on PayPal platform.

[FatFork]

I don't think that matters. If PayPal thinks that's the best way to incorporate Bitcoin into their operation, so be it. PayPal has a massive user base, and this can be seen as a form of marketing for Bitcoin and cryptocurrencies in general. How many users will learn about Bitcoin via PayPal but want to know more about it? Maybe they're going to decide to buy the 'real thing' when they see the restrictions that PayPal has imposed?
Do you think integrating bitcoin into eBay payment methods would have a positive effect on Bitcoin? Well, this could be the first step in that direction.

[eaLiTy]

Sad!
So those frauds bitcoinDOTcom, Paypal are using the name of Bitcoin to stay in the completion with their business?

It is true during the initial stages as PayPal did not provide any clarity on how they are planning to carry on with the business but once reports came out that PayPal purchased 70% of the mined coins in recent times it is clear that they will be allowing the option to withdraw BTCitcoin sometime around next year.

PayPal started allowing BTCitcoin to stay in the competition and we will see many platforms accepting BTCitcoin in the future and the only problem with PayPal is their business model of blocking the account if you are dealing in huge amounts and i have seen complaints regarding a BTCitcoin trader who got his account frozen and as far as i understand it is a long process to unlock the account.

[lovesmayfamilis]

PayPal has contacts with over 26 million retailers. Therefore, goods can be paid in all ways, which fully satisfies the interests of the system itself. Unfortunately, this does not include the interests of the sellers themselves. Since paying for the product with Bitcoin, the seller will still receive the equivalent in the default currency. According to the expectations of this system, it is assumed that retail sales in the coming 2021 could grow significantly using cryptocurrency payments. Be that as it may, I remain very skeptical to fully trust my finances to this system.

[Nhor1011]

This is not Bitcoin that Paypal is offering but perhaps it is something similar to Grayscale Bitcoin Trust stock. It should be classified as such, a share of Bitcoin with restrictions.

I would not even think of using Paypal to buy and HODL my Bitcoin it's against what Nakamoto teaches us that not your key not your coin philosophy, what we've seeing on PayPal are only figures, we don't even sure if there are blockchain records in all our transaction, PayPal is not the right way to start someone to Cryptocurrency, I will not recommend my friends who are new in Cryptocurrency on PayPal platform.

It means bitcoin in Paypal is just a fraud and not safe because you don't have your own private key. Your privacy and funds may be compromise. Oh, it's not good to use it. They just using the name of bitcoin to take advantage.  

[crwth]

His first impression was that Bitcoin wasn't even needed at all. And he is right. It doesn't have a use case if it is trapped inside an app and you can't move it.

It's just being used as an instrument to profit from your actual balances in their accounts. I have read a couple of threads about PayPal and into what they have done with it. It's just weird that they cannot get their actual Bitcoin.  

This is not Bitcoin that Paypal is offering but perhaps it is something similar to Grayscale Bitcoin Trust stock. It should be classified as such, a share of Bitcoin with restrictions.

People should be aware that this is actually happening. I know some people who have been looking at Bitcoin differently and was taught to see it just as you have told. It shouldn't be like that. I think the truest people who have been loyal to BTC are the ones who have been there from the start. People who have come along the way are looking for ways to profit with Bitcoin.

[Rodeo02]

It means bitcoin in Paypal is just a fraud and not safe because you don't have your own private key. Your privacy and funds may be compromise. Oh, it's not good to use it. They just using the name of bitcoin to take advantage.  

You will never have your private keys in a 3rd party services even exchange so no question about that if the PayPal will not also provide keys.

I would not even think of using Paypal to buy and HODL my Bitcoin it's against what Nakamoto teaches us that not your key not your coin philosophy, what we've seeing on PayPal are only figures, we don't even sure if there are blockchain records in all our transaction, PayPal is not the right way to start someone to Cryptocurrency, I will not recommend my friends who are new in Cryptocurrency on PayPal platform.

No one like holding funds in any exchange or 3rd party services since it's proven that is not secured to hold funds in there for long .and the other problem of paypal if you buy btc there is us regulations and you can't avoid it .

[noorman0]

_snip_
what we've seeing on PayPal are only figures, we don't even sure if there are blockchain records in all our transaction, PayPal is not the right way to start someone to Cryptocurrency, I will not recommend my friends who are new in Cryptocurrency on PayPal platform.

Paypal only backs up a certain amount and of course your transactions are only recorded in their database and cannot be tracked publicly. Learning to transact bitcoin using paypal is clearly not ideal, because some paypal systems conflict with the nature of bitcoin especially about freedom and transparency.

[avikz]

Paypal is sending the right message - not your key, not your bitcoin!

People are usually stupid and they sometime needs to learn the hard way! When people will learn that they can't do much with Paypal's bitcoin, probably then they will try to understand the actual technology behind it and start using some desktop wallets to hold their bitcoins going forward.

It's definitely unfortunate, but I think the community will be benefitted out if it in the long term!

[hugeblack]

Let's be fair. If we ask a large portion of the people who have Bitcoin about why you are continuing to hodling it, then the price will be one of the main reasons for this.
Everyone loves Bitcoin not because it provides the required decentralization or it resists inflation, but because it is an easy investment that achieves good returns in the medium and long term.

A lot of people do not care about privacy, otherwise, they would not store those currencies in central platforms, which seems against the general concept of bitcoin.

[hatshepsut93]

From a user's point of view, the point of holding Bitcoin on PayPal is its price - if you believe that the US dollar will fall, that Bitcoin will rise, and if you always has some balance on PayPal for your needs, it can make sense to convert that balance to PayPal's Bitcoin, and convert it back to USD when you need to make some spendings. Of course from a point of view of Bitcoin user PayPal is not needed and malicious, but from a point of view of active PayPal user, it's a nice additional option. PayPal targeted their Bitcoin trading at their existing users first, they didn't do this to win Bitcoiners.

[gmaxwell]

I'll state a somewhat controversial view: Forcing everyone who's *only* interest in Bitcoin is number-may-go-up to do the whole self-custody thing is bad for Bitcoin.

Not everyone needs, realizes they need, or is ready for what Bitcoin provides.  Yet they still may not want to get left behind on the price action.  If you force someone who doesn't want to use Bitcoin to use it they will likely have a bad experience just like anyone forced to do anything else-- they'll do it poorly, they'll lose their coins, they'll blame bitcoin, and they'll demand changes to the ecosystem that bend bitcoin to the need of price-action-only-use to the detriment of other uses.

Instead, we should consider price action only people our allies-- since support for Bitcoin's price is useful to everyone else too-- but help guide them to solutions that best meet their needs while making sure they're educated on what they're getting and what they are missing out on.

Before you can adopt something fully you need to recognize that it's useful to you, and for many people before they can do that they need to recognize that its useful to other people.  Price-action-only bitcoiners are recognizing Bitcoin's usefulness to other people, if not themselves.

They'll come around eventually.

[FatFork]

Instead, we should consider price action only people our allies-- since support for Bitcoin's price is useful to everyone else too-- but help guide them to solutions that best meet their needs while making sure they're educated on what they're getting and what they are missing out on.
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Very sensible thinking, and not at all controversial, if I may say so. 
Each of us should do our part.

[Kakmakr]

If you read the articles and announcements from PayPal, you would have noticed that they were only launching this for selected customers in the USA to test the water... but they said that the future plans include the expansion into Europe and then opening up their merchant network to the users to buy and sell goods with those bitcoins.

There are a lot of things that they would have to navigate to be able to offer Bitcoin payment to countries before they can actually do it. A typical example : How do you offer Bitcoin as a currency or payment option, if the government define Bitcoin as a Commodity?

Give this time to evolve.... and for PayPal to find their feet.... then this will fly. 

[ChiBitCTy]

This is exactly what I suspected would happen with PayPal.  First off, what do you expect, PayPal is a scummy corrupt as all hell company and has been for a very long time.  The fact that you can only buy / sell/ hold bitcoin is such a joke.  Not being able to send and receive bitcoin ( just like with Robinhood ) should surprise no one.  I would suspect they change this eventaully, but who knows.