Today it was announced that PayPal is ready to start cryptocurrency payments to merchants, so that the huge user base of millions can be paid for with Bitcoin and the other altcoins since the middle of last year.
However, as with anything related to centralized platforms dealing with cryptocurrencies, there is a catch.
PayPal enables customers to pay with Bitcoin, Litecoin, Ethereum and BCH
As the company promised when it first announced cryptocurrency support, PayPal rolled out support to allow customers to pay at its 29 million merchants worldwide.
PayPal users can now pay for goods and services through the platform using the four assets on offer, including Bitcoin, Litecoin, Ethereum and Bitcoin Cash.
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The initial announcement that the company would offer cryptocurrencies is the spark that started the bull run, but the execution of their plan has since been criticized.
PayPal does not allow users to move cryptocurrencies from their custody to a wallet of their choice, defeating the purpose of the technology itself. In addition to problems with storing crypto assets, there is also a catch with issuing crypto.
Could the PayPal news be enough to push Bitcoin through resistance to new all-time highs? | Source: BTCUSD on TradingView.com
Paying with Crypto includes the first switch to Fiat
The PayPal news has caused Bitcoin to skyrocket again, and it could be the momentum necessary to propel cryptocurrency through resistance and new all-time highs.
The first PayPal messages initially caused the outbreak, so there could be another leg higher in the cards. Again, regardless of the bullish price action emerging from recent news, this is not all positive for cryptocurrency users.
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Similar to other methods the company uses to combat technology, PayPal also swaps all crypto assets for fiat immediately prior to the transaction. What is really happening is that cryptocurrencies themselves are not issued but are sold in cash and cash is exchanged itself.
Instead of relying on the respective protocol of each cryptocurrency to process the transaction from wallet to wallet, PayPal has instead re-created a central system and wallet garden. Companies like the brand have taken the “if you can’t beat them, join them” approach with crypto over the past year, but have stopped taking full advantage of what the technology itself has to offer.
Who knows. Perhaps PayPal is doing its users a favor by encouraging them to hold onto rather than spend money, which has proven to be a mistake in the past anyway.
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