Topic: PayPal allows users to withdraw Bitcoin to external wallets - page 3. (Read 688 times)

This was a long time coming, sure took long enough. Despite this positive new coming out of PayPal, it’s some of the only good news you’ll ever hear from this company. I would still highly suggest people buy their crypto elsewhere, and not support such a corrupt company. Buy OTC or on exchange like Kraken.

So after almost 2 years (from October 2020) of letting people deposit bitcoin and trade it on their platform, they have accumulated enough bitcoin from their customers to feel safe to let people withdraw some of it (considering not everyone would withdraw)!
Basically they sold and held fake bitcoin for a long time.

Its gonna mixed up of users. Some will agree to this and those who preserved their privacy will surely end up not using paypal at all. Anyway, there are much other ways other than paypal to do buy and sell of bitcoin.

But its great to see that PayPal are now in the league with others relating to bitcoin. It just show that bitcoin adoption is slowly but surely.

Changes such as this one will bring positive views for bitcoins, it came from trusted sources therefore critics have no room to criticize them. This is now convenient for the people who wanted to keep their BTC with them in their personal wallet for security reasons and they don't have to worry about transaction fees using any 3rd parties to get their cryptocurrencies. As for the other payment apps, they should make it possible to have this kind of feature so that they won't be left behind and lose some users.

Indeed. I guess that's the most important point here. It's been more than a year since PayPal allowed its users to buy Bitcoin, Ethereum, and Litecoin. It's only now that they finally allow them to really own their cryptocurrencies. So the issue on fees is a different one. For now, the issue on withdrawal is addressed.


What's the big deal? This isn't a catch anymore. It is PayPal, after all. What do you expect? Your identity is already there. Not only that, your bank information is also there already. So what else is there to hide? Apparently, this PayPal thing is only for a specific kind of people, though.

At least they heard of what their customers demand.

But in exchange for this action, as I read in the article Paypal was planning to increase their identity verification process for users before they can send out their Bitcoin or other altcoins completely outside the Paypal's wallet.  So what it is?

However, it turns out better than before because you are now able to transfer your fund to an external wallet.  I think this system will be going to adopt them is the same as other custodial wallets locally.  The same in our local wallet, there's no fee when you send from the same wallet and if it's external transaction will vary only on the network fee and which is sounds great.

custodial services usually dont send transactions out one by one where the user pays the whole fee of one transaction.

they usually batch it up as being like a 1in100out
which works out cheaper then a 1in 2out

EG

bc1qexchangecoldwallet (5000btc) -> bc1qcustomer1wallet (0.99999860btc)
                                                       bc1qexchangecoldwallet (4999btc)
(140 vbyte) (customer pays 140sat fee at 1sat per vbyte)
vs
bc1qexchangecoldwallet (5000btc) -> bc1qcustomer1wallet (0.99999968btc)
                                                       bc1qcustomer2wallet (0.99999968btc)
                                                       ....
                                                       bc1qcustomer99wallet (0.9999968btc)
                                                       bc1qexchangecoldwallet (4901btc)
(3179 vbyte)(customer pays 32sat fee each at 1 sat per vbyte)

What it says on their released statement provided by dmrdmr,


I'm guessing they will allow you to customize the fee to a certain extent like giving you the option to choose from lowest to highest priority. The problem there is that their estimate will be higher than what you see on mempool.space

there is more to it then that..
there is what i call the 'stirring the pot' problem

if funds are locked into a system with no desire/ability to exit those coins. then people just end up swapping within the system. this means no buying new coin(at corporate paypal level) no exiting with the coin(at customer level). and so its just the same coin stirring in the pot.. being held in custody but not blockchain moving. and instead just changing users account balance numbers. where users are upset by having to sell at a loss when the only option to exit paypal was $$

where as letting people exit holding btc and allowing new users to buy and exit. means new buyers are then requesting coins, which paypal doesnt have to give(less in custody). so paypal buys more to then give.
which at this precise moment is good because its cheap to buy them.

new coins get to stir in the custodial pot at a new lower average cost..

EG instead of stirring the pot of coins where they initially may have been bought at $60k by paypal corporate, and lots of users were at a 50% loss when selling yesterday within paypal(as their only way out previously). those users can exit holding their coin and be happier to be non custodial holders. and not forced to sell at a loss
whereby fresh customers can buy fresh coins. at lower prices. and paypal is then able to 'average down' its custody value of coins it has and keep customers happy

Wrong sellers will realize they don't need Paypal if they have a good reputation.

And buyers will need paypal when they do not trust a seller.

So there is room for both.

It looks like Paypal decided to change their strategy from trying to corner the market by trying to suck in as much Bitcoin as possible to their closed ecosystem, by using their huge existing user base. It actually makes sense from two different angles - they probably don't want a potential headache from customers saying they were missold since the price has started to fall and they're also probably more interested in getting more customers to use their Bitcoin rather than just sit on it as an asset. If there are more people moving money in and out, then there is more opportunity to charge fees rather than the relatively static deposits-only setup. Maybe they are starting to see it as less of a threat and more of a money maker, but they're probably also more confident in the underlying exchange system that they have established as well.

Congratulations to PayPal users this will be a relief for those who use the platform to buy btc and couldn't withdraw, although I don't think many PayPal users mind, just like the way people don't mind leaving their money in some trusted exchange. I believe PayPal must have some policies that protect users' funds in the event of losses from the company's side.
This is an individual opinion so whether users keep their money in their personal wallet or leave it in exchange is totally up to them.
However, it is better to have the option than not to have it, they really have made tremendous progress since the beginning of this journey.

This does really proves out that everything could really changed unexpectedly even though how centralized they are but still they have reconsidered on adopting bitcoin or integrating it and now they do allow for external

transfers which is something that a good option or good news to those people who would tend to make use Paypal.Yes, the numbers might not really be that great but at least we do really have some choices.

Hope other platforms would be doing the same thing too but lets see on how this recognition would really be more rampant on other services/platforms as well.

Because majority of people will never want that responsibility, to be their own bank. The more crypto goes into mainstream, the more people will use centralized exchanges and custodial wallets. It sucks, but that's reality and anyone who thinks that people will suddenly open their eyes and ditch all that centralized stuff is extremely naive.


I don't think that people who are buying Bitcoin via Paypal care much about that, as if the do they certainly wouldn't use PayPal to buy Bitcoin in the first place.


PayPal used to be quite useful back in the day when you didn't have much options, but situation is completely different now so I guess they have to introduce some changes to stay relevant.

In the end, PayPal listened to the customer's demand and do what was necessary. When the news of PayPal accepting btc was first published this was the concern of the majority of the BTC community, but now it is no longer an issue, PayPal users are at liberty to either keep or withdraw their btc to a personal wallet, it is up to them. I hope users will be wise enough to do the right thing. Good update.

gotta laugh at some replies..

paypal offer a way to exit a custodial wallet to a sole control address.. and certain replies then hint at a silly altnet that locks funds into a multisig 50% controlled by another party..

.. putting it into an altnet (like certain people shamelessly advertised) still requires the network fee to lock/peg those funds up. and also requires forming a relationship with another entity that you require authorisation from. so ...

jump out of the fire, fall into a pot of boiling water.. .. gotta laugh

So, people who use PayPal can now move a thing they didn't have before to begin with. Great move.

Misinformation, ignorance, arrogance.

Not if they need PayPal to move them. 

PayPal realized that if they won't do it, if they won't allow moving to external sources then at the end of the day, the customers will have to choose other bank accounts which will ultimately lead to decrease in the customer inflow and also their business therefore it's only rational to make this decision of supporting Bitcoins as a currency and also allowing inflow and outflow. Also if I remember there are many banks in my country that banned the exchange of Bitcoins and thereby my accounts were frozen I just withdrew and choose to go to some other international bank for trading, it's just business and the need of the hour is cryptocurrencies like Bitcoins.

I think nobody really need PayPal,  but an alternative payment method might be good.

It is common to see some discounts using PayPal payment method in Brazil. It might be safe to use it when you are buying something in website where you don't feel safe using your credit card.

It would not be a problem for me if I could add some bitcoin to my PayPal account and pay for an Airline company using PayPal, for example. Sadly, payal and cryptocurrencies are available  only US AFAIK.

It seems that the change management team of Paypal is quick and agile. They are also taking actions based on the market requirements. Because I know many people did not use Pypal's crypto service because they were not allowed to move their bitcoins outside. Paypal's executive team seen that demand and has implemented the change.

Good for people who have purchased bitcoin through a centralized entity like Paypal. It will be interesting to see how many holders actually use this facility to move their bitcoins.