May I ask what is the purpose of this "experiment"?
It's a very cool thing that PayPal accepts cryptocurrencies, but why did you choose this wallet to collect Bitcoin? Do you want to prove something by this? I am asking really seriously, because somehow I do not see any greater sense in what you do, of course I do not see also anything wrong with it.
It's a very cool thing that PayPal accepts cryptocurrencies, but why did you choose this wallet to collect Bitcoin? Do you want to prove something by this? I am asking really seriously, because somehow I do not see any greater sense in what you do, of course I do not see also anything wrong with it.
This is a good question. I have to ponder upon the answer.
Just off the top, it seems quite clear that you should be able to gain exposure to BTC volatility by holding some or all of your paypal account value in BTC.
Let's say that historically, you have a floating paypal balance that bounces around between $200 and $5,000. If you choose to allocate a certain percentage to BTC (whether 5%, 25%, 50%, 90% or some variating percentages that is based on other factors chosen by you), then you could potentially monitor the extent to which there might be advantages/disadvantages in holding some portion of your account value in BTC rather than dollars.
Of course, during high BTC UPpity volatility there should be greater benefits to hold larger portions of your account value in BTC rather than dollars, and opposingly, during high DOWNity BTC volatility, there should be greater benefits of holding larger portions of your account value in dollars rather than BTC.
For all those saying that this will "increase btc adoption" and "grandmas will buy btc on PayPal", I'm glad you are documenting this.
You are actually highlighting and showing how useless this extra step is, versus just buying stuff through PayPal with your CC or bank account directly.
You are actually highlighting and showing how useless this extra step is, versus just buying stuff through PayPal with your CC or bank account directly.
That does seem to be one of the BIG questions concerning if there happens to be any value in holding some or all of your account value in BTC rather than sticking with dollars ONLY?
Also this is one of two PayPal accounts that I have.
I can easily do hodl and fully understand cap gain tax for it. Or cap loss carry over.
To me it is a no brainer to take advantage of it.
Frankly I am too old (63) to deal with hiding my KYC info. So this makes things easy to do.
This account can be a simply hodl account for BTC. With my past history of over 10 years with this account and 10's of thousands in USD fiat charges and payments. This is simply another piece of investment for me. And there is a hedge to it. Along with a simple accounting for cap gain/loss. Just buy and don't sell for 2-3-5 years
At 63 I don't think in terms of 30 year hodl.
But I do think a nice 15 month plan as stated earlier would give me an idea of what this PayPal account can do for me.
I have still only read the first page of responses in this thread, and from your response to my post, I realize that I engaged in a bit of a presumption that some dickering around of account values might be reasonable in terms of considering potential future BTC price movements, and many of us longer term BTC HODLers realize that there are some problematic aspects in changing allocations based on anticipated future value (aka possible future BTC price movements) - which your post highlighted the weighing of some of the considerations that would be involved to move in and out of positions rather than attempting to maintain a more steady position.
By the way, I was presuming a bit of a range for your possible account value fluctuations, and really, if your account is anywhere in the area of $200 to $5k in the next year and a half or so, there might not be any great attention that would come from the IRS, unless they are adding up other areas in which accounts and BTC activities are adding up that go beyond reasonable assessments of BTC related activities.. Of course, these areas remain in flux, so individuals are likely to come to varying conclusions regarding how much reporting is reasonable and practical - especially related to potential micro-transactions. I am NOT sure the extent to which your age matters, but of course, I get your point that if you have already built up systems that largely already account for your various BTC transactions in relatively comprehensive ways, why would you NOT just fold your PP related BTC activities into systems that you have already established - even though others might come to differing assessments regarding prudence and practicalities in that direction.
