PayPal's Crypto Announcement - The Good and the Bad
(Edited)
The big news in crypto last week was PayPal's announcement that they would be enabling account holders to buy and sell bitcoin. But are they really?
It was good for a few points on the stock at least.
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The good, the bad, and the ugly, right?
I'm missing the last, 3rd part.
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I don't think it's going to be too ugly. Net-net it's a win for crypto.
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The Ugly is when Bitcoin is trading at a cool quarter mill per coin and PayPal's honeypot is so large that a hack is inevitable. My sources point to an inside job.
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That was my first thought when I read the title. Ugly is going to come when nobody is ready.
Don't use PayPal to buy crypto because you won't own it.
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Another way for PayPal to tie and enslave their users
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Exactly!
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At some point PayPal will accept every shitcoin under the sun.
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Even if you can't truly buy and send Bitcoin to an external wallet address, it's the start that we need.
Definitely a win for crypto.
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You own your keys and crypto on Dex. It gets hacked and poof; Your coins are gone.
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That's true. Any time you give access to your wallet your funds are at risk.
Alternatively, what happens to your bitcoin-on-PayPal if they ban your account?
It's unfortunate that theft and fraud are parts of our lives.
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It's exactly how metalpay offered (and still offers) "Steem" support. They have never, to this day, allowed anyone to send their STEEM to the blockchain. We have never even seen a wallet account that reflects the sum of customer balances, that I'm aware of.
But for all other cryptos, metalpay does allow deposits and withdrawals, so maybe they just can't figure out Steem.
Hopefully, PayPal will figure out Bitcoin.
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Yep, I made the same point when MetalPay first came into the STEEM ecosystem.
When it comes to popular BTC derivative services, Square has enabled wallet transfers and RobinHood has not. We will have to wait and see what PayPal does.
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https://twitter.com/CryptoCurrNews/status/1321000469100113921
Do you think they will ever take the risk of holding less bitcoin than the users have?
Even though it's a derivative, i think they have to hold 100% of the coins in order to make sure not to lose money. Price is still very volatile.
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That's the temptation of fractional reserve. Hopefully they will play honest banker.
If they ever decide to buy Bitcoin as a treasury asset, they will haven even more than 100% reserves. This can't be ruled out anymore.
The paypal CEO already owns Bitcoin for a few years, let's see what they do.
Only good or bad?
How about ugly? :)
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https://twitter.com/mistermac15/status/1321901593499996162
Thanks, I was excited initially about using this to buy Bitcoin, but when I saw I couldn't send it to my wallet or to another person's wallet I paused to learn why...you have answered some of my questions.
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Glad I could help
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