The sudden strike to people mentions Bitcoin bearish came when PayPal announced people in the US have now the ability to pay the merchants via BTC.
Let’s have a look back. Last year PayPal after long rumors revealed it will allow Bitcoin transfers. The price has gone into a rally until people realized this was a one-way trap like for example the bank Revolut which also has a bitcoin service.
The problem: You can buy Bitcoins, sell them but can’t send them away. So they stay In the ecosystem. So if PayPal shut down your account like Revolut can do, your coins have gone for good.
PayPal became an exchange in a closed circuit. Later the year they announced they will start accepting payments somehow in the next year in the first quarter. As the new year started many people have been disappointed because they believed it would happen in February.
In March rumors started about accepting Bitcoins as a payment provider for PayPal and finally they allowed it today. Bitcoin price reached $60,000 again and the market also had a lot of big invests today so the price movement upside will continue.
Interesting is that PayPal is an own coin system not crypto but digital Most of the people don’t know. The reality is if you use PayPal, they create from the money you have to pay digital coins which are exactly 1 Dollar, 1 Euro, whatever. These digital coins will be transferred to the guy who accept PayPal payments. Means PayPal is a wallet nothing else. It is pre checking the source of the money and the account of the recipient. If this is compliance ready the digital coins are transferred but the payment itself not. So we pay a fee to paypal exchanging the money in digital money and do an instant payment.
Best is, the recipient does not know which method you used to pay (credit, wire, bitcoins…) because after the deal is gone PayPal itself exchanges the money. As long only the digital coins have been transferred, we can do regress. Means the deal does not work PayPal can clarify so the money is hold on PayPal’s end. If now compliance is necessary the money is transferred, but since the digital coins have been accepted your deal is always paid.
Means the merchant does not accept directly your Bitcoins and PayPal is the exchange backing up the volatility with their digital coins in value.
The PayPal founder Peter Thiel (also owner of a bitcoin mining company in parts) made a former statement saying Bitcoin is what PayPal would have been.
Today this is a big step for everyone who believes in the new money of Bitcoin.
Written by : Prof. (Dr.) h. c. Joerg Molt