PayPal and Bitcoin are two of the most revolutionary concepts that have changed the world and are continuing to shape it. PayPal was introduced in 1998 and it changed the way the world looked at financial transactions. In many ways PayPal lead the fintech revolution that resulted in a change in the way we look at e-commerce today.
The Growth Story Of Both Bitcoin And PayPal
Bitcoin came almost a decade after PayPal and caused a similar revolution in the financial industry. Bitcoin was launched on the decentralized block chain network and at that time in 2009 the market could not see the true potential of blockchain and bitcoins, it was perhaps a technology and a concept that was ahead of tis time. It took at least two to three years for bitcoin to gain any sort of traction in the market and it was around 2017 when the hype around Bitcoin finally broke through that psychological barrier.
2017 was an important year for Bitcoins as the value of bitcoin shot over the roof. Although 2018 saw bitcoin crashing down and losing over 50% of its value but since then bitcoin has recovered most of its value and at this moment is trading around $9500 and industry experts are of the opinion that in the coming months bitcoin can once again shoot up to $20,000 high.
These predictions are making people jump on the Bitcoin buying bandwagon again but this time it is not going to be like 2017 because bitcoin has now been through a major financial crisis and it has passed its litmus test. Investors have now realized and understood that bitcoin can be used both as a medium of exchange and as a store of value. Its performance has been similar to gold minus the volatility and this only means one thing, that people are looking for ways to buy bitcoins.
It is unfortunate that although bitcoins have been here over a decade but the masses are still not completely aware about the methods through which they can buy bitcoins.
Purchase Methods For Obtaining Bitcoin
At present bitcoins can be purchased through
- Credit/Debit cards
- Bank transfer
Out of these four methods, purchasing bitcoins through credit or debit cards and PayPal are the quickest and the most convenient methods. With credit cards, you will be subject to an extra transaction fee but if you look at the speed and convenience of buying through credit cards, then the transaction fee isn`t much.
PayPal is also a very fast and convenient option to purchase bitcoins and it has no transaction fee either but at the time of writing this article, the issue with PayPal is that not a lot of bitcoin exchanges offer PayPal as a payment method. The reason for this is the chargeback issue.
The charge back issue allows customers to claim the credit card company or PayPal to return the payment or reverse the transaction if the seller doesn`t fulfill their end of the deal. This is a good way to ensure that buyers are protected from seller fraud but the thing with bitcoins is that they are transacted on the blockchain platform and therefore there is no way to reverse a transaction once it has occurred and no way to trace it either.
This means that if a buyer opens up a dispute against a seller, the sellers cannot really provide any evidence for their case. There have been some instances where buyers have tried to exploit this loophole and for this reason bitcoin exchanges have dropped PayPal as a payment method.
Exchanges That Support PayPal Purchases
At present if you want to purchase bitcoins through PayPal then you have got limited options. Coinbase is the biggest bitcoin exchange and it doesn’t provide PayPal as a payment option for purchasing bitcoins however it does provide PayPal as a payment option for bitcoin sellers.
eToro is another option for bitcoin users but eToro is not a bitcoin exchange. eToro is a bitcoin trading platform and this means that users can use their PayPal to purchase bitcoins but they will not be able to transfer these bitcoins into their bitcoin wallets. Instead these bitcoins will be kept with eToro for crypto trading, so eToro basically allows users to trade crypto currencies and get exposed to the price movements.
Local Bitcoins and Paxful are another option, these are peer to peer platforms that users can use to purchase bitcoins. P2P platforms are less secure because these platforms allow buyers to directly contact sellers through the P2P platforms and it has been noted that sometimes sellers end up abusing buyer trust. Most P2P platforms have ratings for bitcoin sellers and buyers can ascertain the trustworthiness of sellers by assessing their ratings.
See 5 ways you can buy bitcoin with PayPal as a payment or funding method in this great article by Smart Bitcoin Investments: https://www.smartbitcoininvestments.com/buy-bitcoin-with-paypal/
Apart from these options, there is a new development happening in the market that maybe seen as a good news for bitcoin users. According to CoinDesk, their source has revealed that “My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo. They are going to have some sort of a built-in wallet functionality so you can store it there.”
If this happens, then this can prove to be a game changing development for the industry as this will make access to bitcoins and other crypto assets through PayPal much more easier and basically every PayPal user will be able to seamlessly buy/sell crypto currencies.