Topic: PayPal Reaches 85% of Binance.US Volume (Read 968 times)

^{"PayPal to Acquire Curv"} headline shows that company doesn’t give up on its intentions to expand their  niche in the cryptocurrency market. AFAIK, this is the second attempt to acquire some custodial service relevant to cryptocurrency, the first one was centered on  BitGo the  deal with which  was cut off.

Jose Fernandez da Ponte:

And further there are news that paypal has bought bitcoin valued over 70% of total new mined coins in the meantime. This along with other institutional investors, are buying more bitcoin than that are entering the supply.
https://news.bitcoin.com/paypal-bought-70-of-all-newly-mined-bitcoin-last-month-as-demand-rockets/

Institutional investors are capturing a larger portion of bitcoin which would make them even larger whales and it would be easier for them to manipulate price.

Why people want to buy btc on paypal so much? its impossible to withdraw btc from there. There are a lot of good exchanges with card buying features like bitfinex (via ownr) or kucoin (via simplex) for example. However, people still want to use paypal..

Basics of what? As far as average joe is concerned, there are just addresses and amounts of bitcoin to send, and possibly transaction fees in the form of "slow", "normal" and "fast" too.

It's different if you have customers on crypto exchanges blaming bitcoin for their transaction fee or key mismanagement woes, than customers of a company that is not crypto centric such as PayPal, Venmo or Stripe having crypto transaction problems. Let me explain why.

The two groups advertise bitcoin as a different thing to people, the first group advertises bitcoin as a utility to make money and invest on, they even give their customers access to private keys and seed phrases (which is a good thing, don't get me wrong), but the more control over their bitcoins you give to people, the more likely they are to blame bitcoin for e.g the high tx fees that made a trade unprofitable, a forgotten username&password that caused them to lose their seed phrase too because they never wrote it down, things like that.

Now I'm not saying taking away people's control of their bitcoins is good, I'm just pointing out the correlation between control and blame.

By contrast, the second group advertises bitcoin as a method of payment, and (possibly) a means to exchange it to other currencies. Users don't have access to private keys or advanced fee handling and get a dumbed down version of bitcoin. IF some bug prevented USD <---> BTC exchanging from working (which is pretty much the only thing PP offers as of now), they are not going to blame bitcoin for the failure, they will blame PayPal, or X service, and flood their customer support.

(Addendum: newbies who are using software wallets are even more likely to blame bitcoin, because they are the sole managers of their money and not a company, and there is only themselves to blame for a mistake. Most people are unwilling to admit responsibility though, so naturally they try to find something else to blame.)

And while we're talking about control:

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Fixed that for you. Contrary to what many people think, most non-tech savvy people in the US are using MacBooks and iPhones (I think even the Linux/Mac flamewars are bigger too.) And those devices give you almost zero control over the configuration, unlike Windows, yet the same concept applies here - They have a large userbase, while MS has less of a userbase that they can directly influence. Influence comes from selling the devices directly, or in the case of financial services, signing up the most customers on your own platform.

Bar is not really high. According to Coingecko, Binance US volume is just shy over 30 million USD. Pretty low compared to top US based exchange like Coinbase with its 900+ million 24 hour volume. But it sounds better and more bullish  when you write "Paypal volume is 85% of Binance US volume" instead "Paypal volume is at 3% of Coinbase Pro volume". You gotta make people click that link

Nevertheless, it is a good number for Paypal in just 1 month, which i expect to increase sharply once FOMO kicks in.


That's exactly why they would blame bitcoin, because they don't understand the basics. I do agree that is ridiculous, but that's what people do.

They won't blame bitcoin for a Paypal problem, it's as silly as blaming the dollar or euro and the world financial system for disputed dollar/euro transactions and banking fraud, and fiat scams! They don't understand how any of those things work either, so why should they blame something they don't understand? Additionally, they are paying Paypal for their bitcoin services so when they ask for support they will be going to PayPal customer support, not some bitcoin forum.


Maybe this is still the case, I don't think anyone here with a Paypal account is willing to verify whether this still happens though. PayPal might have opened up for their own service only and is still cracking down on third party exchangers, after all they did not announce any change in policy so I still think it's risky to pay for exchangers with PayPal.


If we managed to moon to 18K just from PayPal opening up to users, I expect us to gain at least $5K more if they open up to places like Europe and the Far East, but I don't think the announcement of a PayPal exchange will have much effect on the BTC price in the long term.

As for China, a similar payment service company like Tencent or Alibaba allowing bitcoin wallets in WeChat Pay or AliPay will further moon the price, since China has a large untapped market of cryptocurrency buyers.

Because the attractiveness of paypal users is familiar to us, almost the majority of businesses also use paypal as their payment tool. Of course this is one of the positive news and appreciation for the development of bitcoin after entering the paypal circle.

Hopefully the others will also follow in the footsteps of paypal soon, like Skrill maybe amazon too.

It's just like a copy trading maybe, https://twitter.com/100trillionUSD/status/1318908402064625664

It's like you are trading with the paypal itself. You can only buy and sell with paypal. Any action that you have taken for you bitcoin to be used to buy something on the merchant will make your bitcoin to be liquidated into the dollar and then it will be used to pay the merchant. it seems to me bitcoin paypal just like IOU token.

This is just an awesome news from paypal! It shows how many people are interested in Bitcoin/Cryptocurrency. This is just for USA but what if they open it for European and others people! It will explode for sure!

I'm guessing it's US only because of the Bitlicence and the services they're using who also have them. In most other places there's no regulation as explicitly set out as that and they may not bother until there is.

Japan is the other obvious one but I've no idea how much presence Paypal has there.

Maybe all those people that are buying with PayPal are just some noobs and inexperienced folks that don’t understand how cryptocurrencies works and they just want to buy and hold. If not, you will know that there is a huge difference between the two of them. When you’re buying with Binance you can send your cryptocurrencies to a wallet that you fully control where you will own the private keys, like Trezor and Exodus.

As for PayPal, it’s simply a Hodl platform, you can’t use your Bitcoin since they just sit there in your wallet doing nothing, except when you spend them on merchant stores that accept PayPal Bitcoin.

This is just from US and if they open to Europe and all other continents, PayPal users are everywhere even in Asia. It's definitely going up there to exceed the previous ATH. Its catching up binance and they haven't turned their platform yet into a full exchange.

I saw an article that paypal has plans to have an exchange. Once they do this, there could be more users there than in binance.

How high a bar is binance.us? Since you hardly ever hear about it not very is my guess. All the same this is definitely one to watch. It may be offensive to us but just what the doctor ordered for others.

I know few people that lost PayPal account due same thing few years ago. I also used Paypal for buying and selling  cryto back then, but when I saw what's happening I stopped and haven't used Paypal since then. It's funny how things turn around, and even though what they sell to people is not the real bitcon, I still see this as their defeat. Bitcoin vs Paypal 1-0.


That's true. I don't know about other area, but PayPal is very popular here in Europe too, so once that becomes available here I am sure that many will be interested investing that way. This PayPal thing is far from perfect, but I expect people to eventually get the real stuff once they familiarize themselves more with all the pro's of being able to do whatever you want with your bitcoin and not being in fear of getting your funds locked because whatever reason.

Guys and Gals.... this is only the tip of the Iceberg..  

Do not forget that PayPal are only offering this service to it's US customers now... it also has plans to extent this offer to Europe soon and then the rest of their customers. (Depending on what legislation is in place for those countries regarding Crypto currencies)

So with a user base of 346 million worldwide that are basically still untapped, this could push the Bitcoin price to the Moon. I am very conflicted with this offering, because I rather want people to own their own coins (Sole access to their Private keys for their coins) ...but this global exposure are helping to take the Bitcoin experiment to a global audience.. which is good for this experiment.  

Binance US is different from Binance global, so I'm not surprised that in such a short time Paypal was able to reach 85% of Binance US volume.
Moreover, the current price of Bitcoin continues to rise, even approaching the all time high price, so it definitely makes Paypal users more
interested in buying Bitcoin. Like Paypal is also surprised by the demand for Bitcoin from their users, if the volume of Bitcoin purchases on Paypal
continues to increase until 2021, I am sure Paypal will change their rules regarding Bitcoin. They will allow users to deposit or withdraw Bitcoin,
and there is also the possibility that Paypal will become the crypto exchanges.

The very fact that PayPal added the ability to buy and sell cryptocurrencies through its service has huge potential, but this is not enough, since many users complain about the impossibility of exchanging cryptocurrencies. Now everything depends on PayPal, if they make a full-fledged built-in wallet into their service, and not what is available now, then everyone will be successful.

True, let's be optimistic. But what if the negative face of volatility shows itself? Like the price falling to $10k? Imagine millions of people misunderstand bitcoin as a scam.

Lol! It's reasonable to expect the worse. Some people speak like nothing bad can happen.

just like bitconnect and a bunch of MLM-lending cryptocurrencies a few years ago.
people blame bitcoin and cryptocurrency because they got trapped by scammers in bitcoinnect and friends.
I remember when I got asked by a teller in a bank about why I open a new account. I said for diversification. she asked for more details until I said it's for cryptocurrency and stuff.
at that time, she called her manager and she advises me to stay away from crypto because of this and that. however, she relates it to bitconnect and MLM crypto.
well, she is a professional banker. at least read more about it first. 

IMO, paypal will push their adoption, not the bitcoin adoption.
when they push paypal adoption, they won't need to gives their users the real bitcoin.
soon, we would see merchants that will accept "bitcoin" (Paypal version).

a few years ago my money was locked in paypal, less than $5. but they asked me for a bunch of legal documents 

We are officially in bullrun. Just one month, they reach 85%, this is crazy, people have been looking for easier and more trustful way to buying bitcoin, they just found out this on PayPal.  I am blessed to be alive and aware of bitcoin.