While many in the industry were satisfied Bitcoin’s spike to over $ 13,200 after PayPal announced it plans to integrate cryptocurrencies into its network, Some see no benefit beyond the immediate price movement.
According to a blog post on October 21 Satoshi Labs, the team in charge of the cryptocurrency wallet Trezor, PayPal is making an effort to sell Bitcoin (BTC) “It’s probably not because they want to encourage healthy adoption.” Their arguments are similar to those of many cryptocurrency holders who speak out against storing their digital assets on exchanges; H. “They are not your keys, they are not your coins.”
“Bringing millions of newcomers from PayPal to Bitcoin can create a very serious information gap that jeopardizes their expertise and undermines the core principles of cryptocurrency.” he claimed the SatoshiLabs blog post. “Nobody should consider that money held by third parties is their property. The exchange of lost user funds often means that they often run out of resources. “
“If PayPal continues in the long run without consulting the community and letting its users control their own passwords, it will offer no value for storage space. The biggest risk is that the impact they have on traditional electronic payments will be interpreted as cryptocurrency literacy. This would threaten our community’s carefully crafted expert advice, which could be drowned out by the uninformed masses PayPal brings into the room. “
Many players in the crypto industry advocate not holding assets on exchanges that are sometimes exposed to hacks, errors and generalized corruption. Even Coinbase, one of the most popular cryptocurrency exchanges in the US, caused a stir for collapse when trading becomes volatile. In an ongoing situation Malta-based company OKEx has stopped allowing its users to withdraw funds since last week.
The CEO of Blockchain.com, Peter Smith, said PayPal’s decision is “highly centralized and inflexible”:
“We saw that at Robinhood and see it again today. Cryptocurrencies are their core financial freedom. They are modern money that anyone can really control anywhere. We love to see new audiences gain access, a no-nonsense approach. That Custody restricts the ability to keep your crypto assets in safe custody or to trade them freely. “
The mass adoption movement of cryptocurrency has made significant strides in 2020with financial institutions like MicroStrategy Purchase of BTC worth over $ 415 million and Gray levels increase significantly The assets managed in your cryptocurrency administration. PayPal’s decision to protect Bitcoin and possibly offer its own cryptocurrency One step ahead of the digital asset Leader, breaking $ 13,000 for the first time since June 2019, and PayPal shares up 5%.
The fact that PayPal allows its users to make payments in cryptocurrencies is viewed as insignificant by some stakeholders on the road to greater adoption. “The question is whether anyone would want to use (Bitcoin on Paypal) for business transactions, which is more of a mystery.” He said the co-founder of Fintech Consulting 11: FS, Simon Taylor, in an interview for Reuters.
David Birch, Electronic Transaction Advisory Director Consult Hyperion agreed, saying it didn’t believe PayPal’s move would make “much of a difference to Bitcoin”.