The most important piece of news in the past weeks, months, and most probably of the entire year -if not decade- in the crypto space was that PayPal is getting on board, they are making crypto purchases possible for users. Hundreds of millions, to be exact over 340 million PayPal users will get a chance to easily buy bitcoin, bitcoin cash, litecoin and ethereum, a huge step forward.
However not everyone is happy about what PayPal is doing, we collected the most important points of criticism.
Pay with crypto, but in reality with fiat
PayPal has close to 30 million merchant partners, their users will be able to spend crypto at all of them to buy products and services that they desire. This sounds amazing for the overall development of the market, since finally we get a chance to see crypto unfold to its full potential and become a payment method. Except that won't happen, because the merchants will not receive crypto, PayPal will transfer them fiat instead. Too bad.
Not your private key, not your crypto!
The very first thing we teach newbies on this market is that their private key is the single most important thing that they have to hang on, never loose it, never give it to anyone. Well, PayPal seems to be a big brother in a sense, at least they don't trust us with our own private keys, they will handle them for us. Thank you so much!
Innovation or marketing?
What was PayPal's true intention when making the decision of joining the crypto train? Was it the pure intention of helping a new field? Or was it a well understood marketing and strategic goal of making their service appealing to the younger generations? We will never know, but we have a guess...
Decentralised or centralised?
PayPal is a centralised system without doubt, thus their crypto services will be centralised as well. What do you think Satoshi?
The freedom of finance is... ...not here
You can not freely send crypto to anyone you want in the new PayPal services. You can only buy and sell crypto, and spend it at merchants. Also, if you want to take your funds out, they will be transferred to fiat first. Nice...
Regardless of these issues, the crypto space is very luck to have PayPal on board, this is the mainstream player we have been waiting for for years and years. The best is yet to come, since the full potential of the system will only be reached during the first half of 2021!