Topic: PayPal fears Bitcoin :) PayPal CEO Dan Schulman Disses BTC & Praises Blockchain (Read 502 times)

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https://www.youtube.com/watch?v=lZcHqF_Dl4E

He's actually not wrong about a lot of businesses accepting bitcoin and quickly converting it into fiat - because bitcoin is after all admittedly volatile, and businesses, apart from a few actual bitcoin enthusiasts, do not want to carry that exchange rate risk by accepting bitcoin is itself instead of going through a third party like Bitpay.

To be honest, this is a concern, but in the future as adoption increases, price stability will come as well. These things go hand in hand and we're already seeing prices being a lot more stable as markets matured from year to year. And it certainly doesn't warrant this level of criticism, as adoption has certainly been on the increase as you say.

I'd be interested to know what his stance on other, non-decentralised, government or privately issued blockchain projects are. He seems to be solely talking about decentralised cryptocurrencies in this segment, which is not surprising given that Paypal I believe has lost at least a fraction of their market share in online payment processing given the emerging popularity of bitcoin in online trades. There is a conflict of interest that doesn't allow him to comment unbiasedly here.

I doubt PayPal fears Bitcoin at all, just like Warren Buffet, people just don't get it. Bitcoin isn't even trying to compete against centralized payment systems, it's a whole different ball bame, when they realize Bitcoin is digital gold it will be too late, everyone that got it will be rich.

If Bitcoin can compete against PayPal in the form of Lightning Network in the future that is just a nice extra, however is not the main point of Bitcoin. This is how things are. And gold is 7.8 trillion, most payment processors are nothing compared to the potential market for Bitcoin. I mean how can't people see Bitcoin is still tiny and it doesn't fucking matter if you get in at $3000 or $300? it's nuts. When we are at $100k well see the first regret suicides.

Well, he isn't completely wrong. Using Bitcoin in business is still very complicated and risky and often tied with many difficulties so I would not say that he is afraid of Bitcoin because of competition but he is quite realistic. Especialy in some countries is hard to use Bitcoins for business because of very strict laws and regulations oposed by government and tax authorities and it's true that at the end you need fiat money. But I hope this will change in the future.

If you are sending a million dollars for business purposes what is total amount you have to shell out with other payment solutions and if you compare that with the transaction fees of bitcoin it is just like a drop in the ocean. They can diss what ever they want but eventually people who does international transaction will understand the value of bitcoin and how much they can save in transactions alone.

He might be right to some extent, but we can't deny the fact that with the necessary enabling environment by the government, much fund will flow into this market, which will guarantee low volatility unlike what we are seeing now, wherein when just $10b is taken of the crypto market, bitcoin feels the offload. In the future, if bitcoin price becomes relatively stable overtime, there will be no need to converting to fiat. If large population uses bitcoin, fiat will be dished.

I agree with you that merchant adoption is growing, especially with the Lightning Network, but that does not contradict what I wrote. Bitcoin's volatility is a concern for some merchants, and insofar as it is, it will play a role in bitcoin's rate of adoption. However, I believe over time the bitcoin price will stabilize.

Paypal is one of the things that becomes obsolete with Bitcoin. Like banks, unless Paypal also becomes an exchange or payment processor (ie. deposit bitcoin pay fiat), people will simply stop using it. The main problem with Paypal is that depends on credit cards. Why? We should be able to move our funds from/to bitcoin.

But that is ok. The whole sector either embraces Bitcoin or will start getting kicked to the sides. Why he doesn't ask one of the actual creators of Paypal, you know, Elon Musk? That should give him a hint...

But there's an inescapable counter-balance to price volatility; it attracts traders. Which consequently increases market liquidity. Which attracts investors... which causes price volatility. So as you said, Bitcoin is more attractive as an investment asset than a medium of exchange for the majority of users, but only until the market matures.

But that's not stopping trade using Bitcoin; there's no reason not to sell as much of your regular fiat income as you can for BTC, then buy as much of your regular purchases using bitcoin. That supports the bitcoin economy, supports market liquidity, and proves these kind of claims from bitcoin's competitors wrong.

Paypal should not only fear cryptocurrency because the use of digital money has been widely used by the banks. The bank to bank transfer make this possible. If you were to think how those individuals will able to do successfully huge transactions is because of this banks. So paypal were just too assuming to react on the rise of cryptocurrency without seeing the real danger of their business behind with the banks nowadays. 

Well, not only the high fees, it's also that you're just not in control of your own money.
Paypal can just lock your account for as long as they want, under the guise of 'fraud investigation'.

Imagine having a business and having your Paypal account frozen for X amount of weeks.
Yes, they have done this to many people and businesses, sometimes for pretty obscure reasons.

We can't deny that volatility in the cryptocurrency markets is still a controversy for now. In one side some traders utilize the benefit of volatility to make a significant amount of profit. In another hand business owner won't use Bitcoin as the way of payment because of the volatility.

IMO, both aren't likely a good side but the second option more likely are more desired since the more Bitcoin accepted in the merchant, that will mean the adoption increase, and if the adoption increases the volatility will decrease.

Of course they see bitcoin as a threat so it's not something surprising that they will throw shades about bitcoin. Though he still has a point. I mean bitcoin has its own pros and cons, and when you attack the other party, of course you'll tell its cons. It just matters how you view bitcoin yourselves.

Yes!
Everyone should start getting used to this kind of words. We've been attacked since before and look on where they are, this is another big company just think on how it went after Jamie Dimon was bashing bitcoin before.

This has been said years back by Peter Thiel who is the founder of PAYPAL. He states this to be the best solution for cross border transactions. To the same he added stating if he had known about the blockchain technology prior to the development of PAYPAL he could've used the same on PAYPAL. Now CEO of PayPal coming with such a news adds value to bitcoin.

It's laughable when someone from Paypal talks about high fees! Paypal is well known for their exorbitant conversion fees so people will be less worried about margin if they use cryptos instead of paypal.

But I understand Dan's pain. Unlike Banks, PayPal's revenue is mostly dependent on the remittance business where they take fees for receiving money, converting money to local currency and to transfer money to our bank accounts. So cryptos are directly impacting their business. A lot of people like me stopped using paypal after inception of bitcoin. I had a bank verified paypal account which was pretty active. However, I recorded zero transactions in last 3 years after I adopted bitcoin for my freelancing payment. So paypal can he considered as the most badly affected company due to adoption of cryptos.


I completely agree with this statement. 10% fluctuation in any direction is indeed huge and that is actually discouraging a lot of business owners to use bitcoin. Even though there are other reasons like non existent government regulation and confusing tax structure, but the fluctuation is also a big challenge.

I am sure there are lot if businesses accepting bitcoin, but it is particularly challenging for price intensive sectors where the competition is high.

This must be the reason why he got angry at Bitcoin for stealing their clients. Ex paypal coo must be the EX for that reason. Maybe he finally was able to share his positive attitude when he was kicked out of the company. Maybe they have policies that forbid praising cryptos?

Paypal is losing this battle. I'm sure CEO sees the numbers and knows where this is heading. It's not the fault of Bitcoin. It's the fault of Paypal's high fees.

They have to dismiss the use of bitcoin because it will hurt their business so much and they will come out with things like these, majority of the payment platform will be affected if people start using bitcoin for international business transactions, we will see a mass adoption in the future until then they can spread FUD like these to protect their businesses.

every day the bitcoin market looks more similar to 2015 bitcoin market. and each of the news like this one here makes me think there is more similarity and the same situation is about to be repeated soon.
we had the same scenarios too, people being scared of bitcoin future, price not rising and staying stable, some speaking of ridiculous drops to imaginary lows, and the news spreading lots of FUD about bitcoin...

you all know how it ended

I agree with Schulman that volatility is an obstacle on the way to mass adoption. Retailers don't want to risk their profits so much, it's reasonable. Some do go for btc, though, but I am pretty sure they just convert btc into fiat on regular basis, and that's not how adoption should work.
That is also true. Paypal is nothing special, and in my country it's not even that popular, because people can send their money here via Paypal, but not receive it. I agree with the  analyst that in the long run such services might want to be more crypto-friendly is they want to survive. Elong Musk is one of the founders of Paypal and he respects Bitcoin. Maybe he'll put some sense into the CEO's head