The buzz around PayPal entering the crypto market has been quite real. PayPal recently announced that its users will now be able to buy as well as sell Bitcoin along with other digital currencies directly through their PayPal accounts. The use of these digital currencies is permissible with all the sellers that accept PayPal payment, a number roughly touching 26 million. Digital currency finding use on one of the world's most trusted payment applications is certainly something to look out for.
PayPal's plans of rolling out buying options in the United States spread over the coming weeks seem to be real. This comes alongside the full rollout which is due in the first few months next year.
We also saw Bitcoin prices hit the $12,000 (£9,170) mark alongside, marking another important event crypto enthusiasts need to take a look at. Other virtual currencies that PayPal plans on adding first will be Bitcoin Cash, Ethereum, and Litecoin.
Most of us are stuck with the primary question of "How exactly does PayPal plan on going through with this?" Despite there being a lack of news on the front yet, a concise statement by the company gives quite some insight into the matter. PayPal put forward the idea of storing all virtual currency directly in the digital wallet that PayPal offers.
Taking a look at PayPal's new decision
A major reason for the popularity of cryptocurrencies is their survival as a niche payment method coupled with rapid price changes. This is a trait that is very different compared to fiat currencies controlled by the government. Investors have been speculating the power of cryptocurrency for this very interesting reason for a long time now.
PayPal further stressed its aim to increase consumer understanding along with the adoption of cryptocurrency. With most people around the world still being apprehensive and skeptical when it comes to the matter, this seems to be a much-needed initiative that trusted names like PayPal could undertake for the good.
The company plans on providing educational content to account holders, thereby helping them understand how cryptocurrency works and the dynamics of the crypto world. PayPal's influence on helping ordinary users understand the cryptocurrency ecosystem could echo and foster a variety of needed basics in the minds of people.
To know about it in detail, go check trading with bitcoin era.
The author of "Attack of the 50 For Blockchain", David Gerard, stressed Facebook's interference in the process and stated that PayPal was merely describing what can be seen as a crypto day trading market. He pushed forward the idea of being at a loss about who the market is for when we see PayPal as a crypto-exchange.
Comparisons were also made to the stock market. However, with Bitcoin in the picture, the volatile and less well-regulated nature also immediately tagged along and a striking comparison was that of "gambling on penny stocks".
The author believes that one could very well have a flutter and spring a few dollars at it while simultaneously learning what they wouldn't learn any other way. However, at the end of the day it is gambling, he warned. He continued to talk about the big players out there who have what it takes to manipulate the price while ordinary people sit silently at the risks of losing their investments.
"I don't have high expectations from the market because this is out of reach for existing crypto holders. I'm amazed that PayPal came out with such an offer. I still can not comprehend the exact idea and plan of action they are proposing," he said
Emphasis was also laid on some intriguing mind at work, at PayPal, that may well be deeply hit by the crypto fad, thereby trying to bring PayPal and cryptocurrencies together.
What could crypto payments look like?
Several payment firms like Revolut and Square Cash have offered cryptocurrencies for sale earlier. So, the question is: What is so startling about PayPal proposing the idea? The answer is simple. PayPal boasts one of the largest networks of merchants in the world. This undoubtedly underlines every step it takes with immediate as well as chronic gravity. It is this concern that has caused all kinds of alarm and speculation on the front.
When the talk is about virtual currency, PayPal can go ahead and convert it to fiat currency. This will allow merchants to receive correct amounts in their immediate authorized currency.
The New York State Department of Financial Services has granted permission to PayPal and this has been done in the form of a conditional "Bitlicence" - a one of a kind license. Having seen PayPal's early connection with the Facebook product "Libra", we cannot assume this is its first step in the domain. However, PayPal's crypto venture is not to come to life until later next year. This pushes the concerns further ahead.
