Topic: Paypal accepted the Crypto but it will reduce the BTC marketcaps - page 2. (Read 259 times)

As I read the statement of our buddy here, this is not proven yet but what I analyze was only an accusations for PayPal. Fake Bitcoin can be determined because the address can be checked online if it's based on blockchain network, so if he can send us proof or link maybe it's a better representation. The acceptance of crypto of this site is a good alternative to make payment transaction more efficient to all online shoppers.

Basically looks like contracts that we get while doing leverage trading, but here, no leveraging is allowed. I believe PayPal is just making a fool of us by saying that they will be the buyers on our behalf. TBH, only a fool would buy from them knowing that the coins aren't in our possession (or maybe there won't be any coins at all if nothing is purchased). Buying it from exchanges or P2P markets is a great deal in order to just save our BTC in our own hands rather than giving PayPal the opportunity to do it. Well, who is PayPal here? An escrow (or a bank)? Do we really need a "bank" to rely on when it comes to holding crypto?

It will be like a CFD contract on the stock shares market, so the total turnover of "fake BTC" can affect badly the crypto markets. Logically, the awareness will increase but PayPal users will use contract addresses which can decrease the demand on global markets. Otherwise, it is good news from all perspectives. Fake BTC contracts will not make a huge difference because the smart traders and investors will not use the contract instead of real BTC.

There isn't, though. PayPal say that when you buy bitcoin on their platform, then they will use their third party provider (Paxos) to buy bitcoin, which they will hold in their Paxos account on your behalf. So you have to trust that PayPal have actually bought the coins which they say they have, and you have to trust that Paxos have actually provided PayPal with the coins which PayPal have (maybe) asked to buy from them. There is a lot of trust and zero ways to actually verify that the amount of bitcoin which shows up in your PayPal account is actually being held on a wallet somewhere for you.

It is not that they are generating "fake bitcoin" as OP puts it, but rather they might not be buying bitcoin at all - we have no way of verifying. And even if they do buy bitcoin on your behalf, you can't do anything at all with it. You can't withdraw it, can't transfer it, can't spend it, can't send it, can't hold it, can't use it. All you can do is sell it back to PayPal. All you get when you use PayPal is a number on their database, nothing more.

I get it. I think there's one platform that's very familiar to me that also do this but I'm not sure if they do it really because I've just read it from another individual but I don't have any proof that they actually do it.

Yes, thanks. I understand that you're only virtually trading bitcoins but when you want to withdraw or transfer it outside the platform, it won't proceed. But we need to wait for more for PayPal's move if they are like that.

Yup, we need to wait for the verification first coming from PayPal themselves.

I don't understand what do you mean about fake bitcoins. If you are referring to the fact that they will not sell real Bitcoins, you are wrong. PayPal is a big company that is probably undergoing regular audits.
They haven't said anything about creating synthetic products backed by Bitcoin (and even in that case they would have to demonstrate their Bitcoin holdings).

I agree. His entire argument is around PayPal's BTC being faked but how does he know that? Where is the evidence for it?

If indeed it turns out the BTC on PayPal is fake then sure that will lead to a huge problem.

However, until that is verified there is no weight to this 'panic'. Indeed there are ways to check the validity of these coins and I suppose people with means for

checking and great concerns will do exactly that. But I must say I do not appreciate this 'panic' lead discussion as it might lead to more trouble, specially for newbies.

I don't think that kind of a huge company will do that.
It will be a big stain on their reputation.

How much it will cost them to just being stupid?
If I am the owner of Paypal I won't do such a thing. I built my roots and it's already a large tree with fruits.
Don't want to waste it because of the newly added feature.

When he say fake bitcoins the number that you bought can see in their platform but you can't transenfer it to your wallet . You need to sell it again to $ if you want to widraw your money you are like buying fake Bitcoin because you can't transfer it and the value will only determine by them it is like a trading platform of Bitcoin but you can only use that Bitcoin in their platform and you can't transfer it .

I do not think it will do any damage to the market, traditional traders and investors will not run to PayPal because of the limitation you mentioned.

If you are not able to withdraw your BTCitcoin or send your coins to a third party wallet and you are only able to trade (buy and sell) within the PayPal platform then it can be assumed that they are providing virtual coins, until things are clear about their stand on how they are dealing with it, we can assume that they are dealing with fake coins .

Paypal will neither increase nor decrease bitcoin market cap. The market cap is now around 18.5 million BTC and it is increasing at rate of 6.25 BTC/block. Paypal has nothing to do with bitcoin market cap.

As I said, there won't be any change in bitcoin market cap.
And even if paypal was supposed to decrease the market cap, it would be a good news. Less market cap causes less supply and higher prices.
We don't know whether Paypal will create fake bitcoins out of thin air or they will store equivalent amount of bitcoin sold to their customers in a wallet.

Why do you say that they will be selling fake bitcoins? it's easy to determine if they will do that and just going to sell bitcoin that was made as an ERC20 token or any chain for altcoins. We have to wait if they will actually do that but I'd assume that they won't. They can't do that as they're one of the biggest payment processors in the world and just dive into cryptocurrencies. Do you have any source telling that they will doing it or gonna sell fake bitcoins as you're saying?

Paypal accepted the Crypto but it will reduce the BTC marketcaps

PayPal accepted the cryptocurrency buy/sell trading on its platform but that is not a good news and it will not be increasing the bitcoin marketcaps anywhere since these are the fake bitcoins which are being generated out of thin air so how you can think that it will increase the demand or use of the Bitcoin or other cryptocurrency?

PayPal process around $200 billion+ within 3 months, if half of the people trade fake bitcoins on their platform then it will eliminate $100 billion+ every 3 months from the cryptocurrency market.

If these fake bitcoins are generated then it will effect the crypto market badly. Bitcoin's total marketcaps will be hitting to ATL soon.

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Blockchain.com is not good comparing to its 12%  APY - Need a different thing

Blockchain.com issue only 12% APY per year while bitcoin has too much fluctuation, On daily change it could go up upto 12% up and around -4%-5% down which is around atleast 60% per month. We need something different which may auto sell our cryptos whenever it hits its ATH and buy those crypto again whenever it hits its ATL and I want that there should be either a bank who may do that or either there should be binance or coinbase involved or maybe any good organization along with good reputation and users trust (like Microsoft/Amazon) may do that. That bank or organization is needed to be insured too. If this happens then it will not only increase the bitcoin marketcaps rapidly but will also attract more and more people to join bitcoin and it will also resolve the world's major problem which is poverty p.s you don't know regarding how good this could be, it will increase the businesses growth too much all around the world. Just assume that you only have $100 in bitcoins in your wallet and after a month you find that your wallet has $160 and next month these $160 converted to much bigger then how many people will join to only accept bitcoins?

If bitcoin is accepted all around the world then the total wealth of the world is around $360 trillion which is currently increasing around $9.6 trillion per year which means that if this happens then there will be an addition of upto $9.6 trillion per year in cryptocurrency market capitals.