Bad reputation

[Zoomic]

PayPal had lots of deficiencies.
Your privacy is not guaranteed.
Transactions can be reversed.
Very high fees in most cases.
And quite a lot of other reasons which have made people avoid that payment platform.

There are quite a good number of better options now which correct the above-mentioned deficiencies, plus the fact that you have full ownership and control of your bitcoins, as opposed to trusting PayPal. There are really better options now that serve the purpose perfectly

[betswift]

PayPal had lots of deficiencies.
Your privacy is not guaranteed.
Transactions can be reversed.
Very high fees in most cases.
And quite a lot of other reasons which have made people avoid that payment platform.

There are quite a good number of better options now which correct the above-mentioned deficiencies, plus the fact that you have full ownership and control of your bitcoins, as opposed to trusting PayPal. There are really better options now that serve the purpose perfectly

During the previous era, only at the start of the road, it may of been good, but currently, I agree, there are options to choose from, which is great.

[Lucius]

But then why did many people have a negative experience with paypal in the early days then?

Which people exactly are you referring to? You can always have a negative experience with PP if it involves any kind of dispute.

Besides, in 2009/10, BTC could be mined even with just a personal computer and the reward per block was 50 BTC - the question arises, why would someone pay $1000 for something they could get for a fraction of that price?

The first recorded transaction involving PP and BTC was between Martti Malmi and NewLibertyStandard and as far as is known no one complained.

[Tazzy4050]

Interesting question about PayPal's role in the early days of Bitcoin exchanges! From what I've learned, PayPal was indeed one of the options for buying Bitcoin in the early 2010s, but it had its limitations and risks.

In the early days, PayPal's policies were not very crypto-friendly, and they had a history of freezing or limiting accounts that dealt with Bitcoin. This made it challenging for users to buy or sell large amounts of Bitcoin.

If someone wanted to buy over $1000 worth of Bitcoin in early 2010, PayPal might not have been the best option due to its limitations and risks. Other exchanges like Mt. Gox (which was once the largest Bitcoin exchange) or New Liberty Standard Exchange might have been more suitable.

PayPal's reputation took a hit due to its inconsistent policies, account freezes, and chargebacks. Many users experienced difficulties withdrawing funds or had their accounts restricted without warning.

From my own experience, I've found that using reputable and specialized cryptocurrency exchanges has been a more reliable and efficient way to buy and sell Bitcoin.

[avikz]

Was PayPal ever a good option in the early days of exchanges in order to buy bitcoin? If someone wanted to buy a ton of bitcoin in early 2010, would PayPal have been the way to go to buy more than 1000 usd worth of bitcoin? Why did PayPal get a bad reputation then?

Paypal is good for dollars transactions but the only risk is their chargeback facility. It was implemented for a good reason but it has created a fair amount of controversies as well.

I never considered paypal as a good payment method of buy anything related to crypto. It was only good for some ecommerce transactions where I can be assured about the safety of my money but at the same time, the seller is unsure if I put a chargeback request or not.

With this facility, I believe Paypal is good for some and risky for some.

[robertcarlyle]

What do you mean that new liberty standard might have been more suitable?  If some people had issues with them via paypal...?

[ellie888]

What do you mean that new liberty standard might have been more suitable?  If some people had issues with them via paypal...?

I think he meant that the Liberty Standard might’ve been a better fit for some users because it allowed direct transfers between accounts without relying on third-party processors like PayPal.

So if people were having problems with PayPal freezing funds or blocking transactions related to e-gold, they might’ve found Liberty more straightforward or less restrictive.

[gunhell16]

PayPal policy stands against the Bitcoin standard. Because Bitcoin is irreversible, whereas PayPal is reversible. Even if you transfer Bitcoin through PayPal to another PayPal, they still could reverse it if they want. It's because it's just an internal transaction and off-chain, not an on-chain transaction. PayPal is accepted worldwide; that's why people choose that. But those who are familiar with Bitcoin, they always prefer to use Bitcoin. However, in addition, I don't prefer to store your Bitcoin in any custodial wallet, even if it's PayPal.

That's the only thing that's a bit worrying about Paypal if they can reverse it. Then I've also heard a lot of bad issues with Paypal, although I haven't experienced using it ever since to be honest. All I read in the articles is news regarding the development of Paypal.

Maybe from another angle there are still other good things about Paypal and it's probably okay when it comes to transactions in dollars, right? Because this is where they really started with transactions like this and they just added crypto or bitcoin because it became trending in the market at this time.

[Josefjix]

PayPal's payment nature is very restrictive that it can only e successful by considering these factors.

_Payment as family and friends option
_Sending money from PayPal balance not directly from bank debit card.

If a sender chooses these methods to make transfer then the possibility of fund reversal is very low and that PayPal always seems to believe much in friends and family options than goods and services.

[AprilioMP]

Was PayPal ever a good option in the early days of exchanges in order to buy bitcoin? If someone wanted to buy a ton of bitcoin in early 2010, would PayPal have been the way to go to buy more than 1000 usd worth of bitcoin? Why did PayPal get a bad reputation then?

I have never bought Bitcoin through Paypal and I did not really follow how the journey was considered good and had experienced a bad reputation.

Paypal is currently an easy online payment and can be accepted by many shopping sites. Yes because of privacy and security so many people recommend using PayPal. For me it is their greatness in building trust.
People will consider using a service if there is security and privacy recognized.

[Crackboy68]

In fact, at that time there was no other exchange to buy Bitcoin except PayPal. Although buying Bitcoin from PayPal was very risky. But they had no other option but to take this loan. But now you will be able to buy Bitcoin without a loan very easily.

[Lucius]

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Nice alt farm, but a poor attempt to gain any merit by creating topics like this. It's a pity that there are no negative merits, you all deserve it

[robertcarlyle]

But how could they buy bitcoin on new liberty without paypal?

[Perfectbaby]

Do you think with how people cared about privacy they would be that dumb to use PayPal currently?
I don't think so because as then things weren't that better as now and there people aren't know how to use exchange or do i say that exchange aren't the common compared with today's word. Currently everyone cared about privacy, and security can't use PayPal as before leaving centralized exchange.

[Z-tight]

But how could they buy bitcoin on new liberty without paypal?

Why do you keep asking repetitive one line questions that are not genuine, so your alts can reply to them? If you are trying to grow an alt farm, you have to put in a better effort. Your question has already been answered, not that you cared to begin with, but maybe it is time to lock the thread and try something else later, lol.

[doomloop]

Its not about PayPal now, its about security and privacy, as at then, people chose to use PayPal because of several reasons which they never have the perfect option as alternative to buying bitcoin than PayPal, anyway, now they have know and understand that its only a gateway payment system and not an exchange, they can easily use an exchange in buying bitcoin now.

If security only, Paypal is actually superb but if privacy, obviously they lack about it. Back then, there were still lacking of payment options to choose from and Paypal is already popular before, so in most cases, people go for it. Last time, I think Paypal actually supported Bitcoin. So buying Bitcoin using it have become much easier. About the exchange, well if one is not yet a member of it, they will still face some hassle, as we know that they usually mandate a KYC but they might offer a better rate for buying Bitcoin. Not only that but we can also choose other cryptos here and then do other stuffs like staking, trading, investing, etc.. So it can still be worth it.

[robertcarlyle]

But what does new liberty have to do with any of this?  How was new liberty selling bitcoin in early 2010 then?

[Nwada001]

They lost a court case in the US, and were ordered to pay something like $500 million in compensation to users ( I may have remembered the amount incorrectly). They managed to suppress the reports of this, and I have tried many times to find them without any luck. I wish I had taken a copy., as I can't even remember the jurisdiction. It was as a result of this that they moved the company out of America, and into a less litigious environment.

If the case you are talking about is the case filed against PayPal in 2015 by the Consumer Financial Protection Bureau (CFPB), the total fine was around $25 million, of which $10 million was to be paid as civil fines and the remaining $15 million was to be paid to consumers (customers) for their wrongful treatment of their customers, as during that time there were a lot of unresolved complaints from customers about them about policy violations and funds withheld and asset frozen.

[robertcarlyle]

Look at this if you dont believe,

https://postimg.cc/fVXQyhTd

[Ever-young]

The reason I believe why PayPal isn’t mostly considered as an option, or gained a not so great reputation is most likely due to a lot factors. There the account freezing, yeah PayPal can easily freeze your account over little issues that you guys could’ve just easily resolved, and even when you try to contact them for resolution, their customer support response is just awful which is a another red flag. There’s also the issue of fee dispute, account limitations, policy changes and a lot of other reasons/issues.