It's just a temporary 'fix' for the current slow transaction speed and high fee.

Instead of having your transactions being handled on the blockchain it's used on a centralized entity-- which is ironic, since Bitcoin is suppose to be decentralized.

This post was edited by Marcusd0 on Feb 11 2021 05:54am

paypal can become a wallet, imo that's the play they're considering. taking their massive name recognition and legitimacy and moving crpyto into their umbrella.

otherwise its just a play on people to get them using paypal more, also smart but more short term.

Does a wallet function like a traditional bank account. A bank takes the money you deposit with them and uses it for investing, lending, etc. Would PayPal be making their money that way by using your bitcoin for things a traditional bank would do?

NO, that would be a bad choice and cause people to not invest in their wallet.

the wallet makes money by charging fees on transactions. which is right in Paypal's wheel house.

in this case, likely holding cash, and converting BTC and other cryptos into cash for those conversions. and then either holding said cryptos (in a bull market) or liquidating them quickly (in a bear market).

that does beg the question tho, in a deeply bearish market can they provide cash for crypto transactions without losing their ass and/or charging customers a fee that makes the transaction not worth it. maybe not. maybe they just bet on BTC going big enough that they HLOD it all even in bearish times and then liquidate once its acrued enough interest to justify selling off in the next bull market.

without knowing the demand on that kind of wallet service yet i have no idea. what i can say is many people are upset with current small timer wallets with high fees, servers down, etc. Paypal could be a giant here if they can just provide stability.

Alright, so I am years and years behind on this. If Paypal is charging fees on transactions what makes this currency vastly different from our current fiat currency. What as a typical average individual makes me say yes, crypto is the future because X X X X will make things much easier or it will be X. What is my drive to change and accept this new currency other than right now it's increasing in value?

shortest answers are limited quantity causing scarcity (BTC has a max limit of # that will ever exist of 21m) and decentralized ledger making it immune to book cooking compared to fiat currency in a bank's ledger. banks with $$ can cause havoc ala housing crisis, current student loan debt crisis, auto loan crisis, etc.

long answer, and i know this is a bit of voodoo, its a currency involving technology that is in the hands of the many rather than behind closed doors. not a technical answer but betting against it feels like betting against the internet in the 1990s to me.

The US gov aquired 1.3m bitcoin (.6% of the market) when it stole them from the silk road bust back in the day.
the aryan founders of facebook before zucc supposedly have 2m (1%) of bitcoin
Investors are probably not personally late to bitcoin, but institutions certainly are.



This post was edited by MaliceMizer on Feb 11 2021 11:56am

gotta wonder what will happen to that Silk Road BTC in the long run. does the US Govt find an off ramp and sell it to pay off debt or just HOLD?

i also saw a figure the other week of the amount of BTC lost to people losing keys or dying and the $$ amount made me sick.

solid looking dip atm on BTC, might be a good buy point anywhere near 46.5 for a short or even long play.

and if anyone wants or doesnt want my market watch notifications lmk, i be peakin at it most of the day looking for swing trade dips

imagine saying dip to 45k at this point last year

huheheuhuhuhehe