http://protegegolfacademy.com/?3530889218 One of the biggest stories of 2020 in Bitcoin was Paypal’s announcement that beginning in the 4th quarter they will be offering Bitcoin purchases to their 300 million+ account holders. It’s unbelievably big news for retail investor/individual adoption since Paypal was the first and biggest financial non-bank app. And then in November, Paypal announced that it’s open for all US account holders per this Paypal press release so now no one in the US has to wait. Other countries will be opened during 2021.
Steffisburg Paypal is all about making financial transactions easier for people. Yet, how is it working?
Is it worth you buying Bitcoin this way? Well yes and no.
is it safe to order prednisone online I bought my first BTC on Paypal back in November when this announcement was made. Here is how it will look on your summary page as mine did in November.
can i buy Pregabalin online in uk And here is what the purchase screen looks like as it did for me in November. Note the difference in price.....
This purchase option is only available to verified Paypal accounts. If you are a US user and your account isn’t verified, it has to be before you can buy Bitcoin.
Pros & Cons
Now that the verifications are out of the way, does it make sense to use Paypal to buy Bitcoin? Here are the pros and the cons:
- It’s very easy and simple
- No wallet management or understanding private keys necessary
- Good introduction to bitcoin for newbies
- Encourages spending and using it
- Can easily sell to convert back to USD
- No additional verifications aside from being Paypal Verified are necessary
- No commission fee to buy (as of now)
- Completely centralized solution where Paypal can control or limit access to your coins
- You cannot move coins to your own wallet. They are stuck there
- You cannot use Bitcoin in other ways like as collateral for a loan or for DeFi
- You cannot transfer your coins to another person
Now for more detail on these…….
Very Easy and Simple
Along with the Cash App, there is simply no easier way to buy Bitcoin. Convenience is a key to Paypal’s offering and why I think they will be successful.
No wallet management or understanding private keys necessary
Some including me, see this as a con also for those that really want to learn about Bitcoin. But for those who simply want no-nonsense access to Bitcoin and its investment potential, you get that here.
Good introduction to Bitcoin for newbies
As stated in the 2 pros above, this is a good way to get started.
Encourages spending and using it
This is the biggest and most underrated pro on this list. Even long-time Bitcoiners admit that getting individuals to adopt Bitcoin as a medium of exchange has been a challenge. For most Americans and Europeans, using plastic is just too simple and easy as a payment system. But Paypal’s wallet enabling purchases with Bitcoin will let people see what it’s like to spend it. They will see how easy it can be when Bitcoin is used within existing frameworks like the debit card and electronic wallet payment systems we use today.
And the first time an individual buys 0.01 BTC for $150 (at $15,000 price) and is able to use that 0.01 to buy $450 worth of goods because the price is at $45,000, they will see how valuable Bitcoin is as a payment system through increased purchasing power.
Can easily sell to convert back to USD
Since you can buy, hold, sell and spend on Paypal, you can sell it to convert back to USD and then send those dollars to someone else or back to your own linked accounts.
No additional verifications aside from being Paypal Verified are necessary
I get it, many of you think that doing Paypal’s whole verification is a PITA. I do too. But then again, most of you have probably done it so you can do larger transactions and move more money around so once you have, there’s nothing else you need to do.
Transparent commission fees to buy
You can expect to pay 2.3% for purchases under $100 down to 1.5% for purchases over $1000, according to Techcrunch. This pricing is higher than other services but still very convenient for small purchases.
Now let’s look at the cons in more detail.
Completely centralized solution where Paypal can control or limit access to your coins
This is one of the 2 big ones. In the same way that Paypal can unilaterally reverse a transaction or chargeback a merchant even when the merchant has evidence of a valid purchase, all the control is with Paypal. It’s a central point of failure for these transactions.
Many of you might not care but it’s important that you know this. Out in the wild, there is no central control over Bitcoin and many Bitcoiners like it this way.
You cannot move coins to your own wallet. They are stuck there
This is the other big one. Your coins are stuck here, for now, until you sell or spend. You cannot move them to a private wallet of yours. You cannot transfer them to someone else. You cannot use them in ANY other way. Very limiting. Again, good for beginners but probably not for those experienced with Bitcoin.
That being said, the Cash App is one of the best, easiest ways to buy Bitcoin as well and they started out this way too. Now you can move your coins from there and I expect sometime soon you will be able to with Paypal as well. But you need to be aware that for now, you can’t.
You cannot use Bitcoin in other ways like as collateral for a loan or for DeFi
As stated above, you are limited in what you can use your Bitcoin for so if you want it for collateral for a loan or a DeFi (decentralized finance) investment then this option does not work for you.
You cannot transfer your coins to another person
Again, limited uses for your coins.
Despite the limited uses for your coins and the backlash that you may see from your more experienced Bitcoiner friends and colleagues, this is a huge development in retail adoption of Bitcoin. Paypal is a leading company with lots of network effects and credibility in making financial services easier and faster for the average person and now they are putting those efforts into Bitcoin.
It’s only good. Is it limited? Yes. Is it ideal? No. Is it a big improvement from not having it? Definitely, yes. And if you are ready to start buying and holding Bitcoin in a wallet of your own, email me at Stu@p2plendingexpert.com and I’ll show you how.