Why shouldn’t you purchase Bitcoin using PayPal?
It is an embarrassment that PayPal is attempting to fool consumers who are not familiar with cryptocurrencies.
Incorporation of Bitcoin and Ethereum into PayPal
Recently, there has been a great deal of discussion over the recent integration of cryptocurrencies with PayPal. While this is unquestionably good press for Bitcoin in terms of public relations, it has absolutely no advantage in terms of use and the development of blockchain technology.
For those who are unaware, PayPal will now enable users to purchase, trade, and store Bitcoin, Ethereum, Litecoin, and Bitcoin Cash using their own system, which will be accessible via their website. What is often overlooked in this story, at least by big media sources, is the fact that PayPal will not allow this.
There will be no cryptocurrency deposits or withdrawals..
There will be no bitcoin payments or cryptocurrency transfers to or from other users in this transaction.
No access to your private keys will be granted to you.
This is essentially the same as if you were to purchase gold via PayPal, with PayPal storing the gold in their own safe and not allowing you access to your own property in the meanwhile. Why would anybody want to use PayPal to purchase gold, is the obvious question.
You can use your bitcoin balance to pay merchants and transfer money to other users, but PayPal misleads you into believing you can.
It’s simple, really.
You make a USD deposit into your PayPal balance (using standard deposit options).
Dollars (USD) are used to purchase Bitcoin.
After a period of time, you decide to sell your Bitcoin holdings.
Your Bitcoin is worth USD when you sell it.
You make a transfer of USD to another PayPal user using your PayPal account.
But we can clearly see that in this equation, there is absolutely no need or use for Bitcoin. Steps 1&2 and 4&5 can be automated and consolidated into one, but we can also see that there is no need or use for Bitcoin in step 5. FIAT money continues to circulate; you just trade it for Bitcoin and then back for no reason other than for PayPal to get more funds from you in the form of transaction fees and other charges.
Integration is being reviewed.
You’ll soon discover that this is the worst conceivable integration of cryptocurrency into an online wallet if you look at the issues above in detail. What follows is a logical question: Why would PayPal take such a drastic step?
Simple as that, is the answer. They didn’t do this by mistake because they don’t understand how cryptocurrencies operate; PayPal is not a naive organization. What they were doing was very understandable to them. The whole goal of this integration was to accomplish the following objectives:
Receive good press coverage as a result of your company’s inventive and pioneering approach to utilising current technologies.
Profit from the trade of FIAT for cryptocurrency and vice versa to earn more money from users.
Customers are forced to leave their bitcoin money in PayPal, allowing PayPal to maintain its market-leading status.
They were successful, much to our dismay, in their strategy. Most people are still uninformed of how cryptocurrencies function at their most fundamental level; as a result, they are easily duped by high-profile companies like PayPal. That a self-centered firm such as PayPal will contribute anything helpful for the blockchain community on a pro-bono basis is wishful thinking on our part.
Cryptocurrency experts would never use PayPal to purchase cryptocurrencies, and I strongly advise anybody else not to do so as well…. If you do not handle your own coins, you will wind up paying far more money on exchange costs.
The advantages of investing in Bitcoins
The greatest return on investment (Return on Investment)
When investing, the return on investment (ROI) is the most crucial measure to consider, since the goal of investing is to earn money. Bitcoin has produced the highest return on investment in the history of finance, and particularly in the decade of the 2010s. Bitcoin generated a 9’650’000 percent return on investment during a nine-year period, from 2011 to 2020, which is insane. The average annual return on investment has been over 600 percent.
This is significant when compared to the 10 percent you earn from real estate or equities. Bitcoin outperforms all other investments in terms of profitability. Only a few of exceptionally successful technology businesses, such as Amazon, Google, and Facebook, have achieved comparable returns, but, unlike Bitcoin, these companies were not accessible for ordinary people to participate in at the time of the first public offering. Because they were not traded publicly on (stock) exchanges like Bitcoin, those early seed rounds were only available to capital venture companies and other investors with connections.
Return on Investment (ROI) in Bitcoin
You do not make any contributions to the mutual tax pool.
Although avoiding taxes on profits is more simpler with Bitcoin than with other types of investing, I’m not referring to the fact that you don’t have to utilize banks, register, or report your Bitcoin profits.
I’m referring to the fact that you won’t have to pay taxes on anything other than your own earnings.
An organization has to pay a significant amount of taxes even if it is not profitable: it must pay VAT, and its personnel must pay income tax on their salaries, among other things. As a result, even if the corporation is not successful, the government is able to extract a substantial sum of money from it. As a result, even if an ordinary investor does not earn a profit, he is still contributing to the mutual tax pool since the money he invests is used to partly pay taxes.
This is perhaps the most advantageous part of Bitcoin investing since who would want to finance an organized criminal organization known as the government?
Bitcoin is not a part of the global economic ecosystem.
In essence, this implies that Bitcoin is not reliant on any other entity. Everything is interconnected in our intricate economic system. If a battle begins in a region where the bulk of a rare resource is found, the price of that resource will rise as a result of the conflict. If the price of gasoline rises, it will have a knock-on effect on the pricing of all goods that must be carried. However, nothing can have an impact on the price of Bitcoin; it is impervious to all influences. On the contrary, when global economic conditions deteriorate, as they are now doing, the price of Bitcoin rises.
Bitcoin is revolutionizing the globe.
Bitcoin, in contrast to the majority of other investments, is not a self-serving item that exists just to generate profit. Bitcoin has the ability to revolutionize the world in ways that we can’t yet comprehend. In addition to removing perpetual debt and poverty, redistributing wealth, and restoring authority to the people of the world, the breakdown of our existing corrupted monetary system will also put an end to wars. Perhaps, in the distant future, Bitcoin will be remembered as the greatest altruistic innovation ever made by the human race.
The safest asset
We often hear reports of politically driven witch-hunts, in which innocent individuals are imprisoned and their whole estates are seized. If one is concerned about his or her security, this is not achievable with Bitcoin. No one has access to your wallet’s backdoor; although the government may be able to track out where your Bitcoins are, it will be unable to do anything about it.
