Bitcoin, News & Updates

Bitcoin’s Battle with PayPal Begins!

Recent news reported that PayPal began allowing the users to buy Bitcoin thru the app and website.

The majority of users addressed this move as a decisive moment for Bitcoin adoption and cryptocurrency markets have answered positively, with the price of BTC momentarily hitting $13,000 recently. Yet others think PayPal’s upcoming feature looks bad for the world’s largest cryptocurrency, basically because of what is lacking.

This new feature allows users from the US to buy, sell, and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on the platform.

On the other hand, a few things are missing from this feature, like private keys. Although it is something the exchange users cannot scoff at, they are more troubled than “the crypto in your account cannot be transferred to other accounts on or off PayPal.”

Adam Back, Blockstream CEO, and Dan Held from Kraken have pointed out that PayPal can follow the lead of other platforms, like eToro, and will add the withdrawal features after the element.

But now, PayPal’s proposal seems like Bitcoin without the Bitcoin.

Consequently, Casa CTO Jameson Lopp says that it is not crypto that PayPal makes available, but the IOUs.

SatoshiLabs, on the other hand, wasted no time telling the people not to use PayPal for Bitcoin.

“When a household brand like PayPal starts selling Bitcoin, it’s probably not because they want to spur healthy adoption,” stated in a blog post.

The post further states:

“The only reasons to own Bitcoins which cannot be used would be to invest for the long term, which is incredibly reckless to do when your funds are held by a third party, or speculate on its price, which again, would be introducing the masses to financial mechanisms they do not understand.”

Brad Garlinghouse, Ripple’s CEO acknowledged that it was “great to see a payment pioneer leaning in,” but then noted that it was “disappointing [that] some fundamental tenets/benefits of crypto are spurned.” It is then pivoted to a common refrain at Ripple, it then speculating that PayPal is remaining cautious for crypto’s regulatory uncertainty in the US.

If Garlinghouse is correct, then one might sensibly assume PayPal’s cryptocurrency features to evolve and expand, like Back and Held does. In the coming year, PayPal had planned to allow the users to certainly use Bitcoin for payments, although merchants have received dollars rather than BTC.

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