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Why PayPal’s Digital Wallet is a Big Deal

Cryptocurrency

Why PayPal’s Digital Wallet is a Big Deal

by | Cryptocurrency

Ben Constanty

CEO, Smartlink

Disrupting online payments with smart contracts.

Bitcoin users and investors got some great news recently.

PayPal has announced the ability for their users to buy and sell Bitcoin through the PayPal app.

As large financial institutions and companies have begun to adopt Bitcoin, this is a logical next step.

PayPal is a company where people hold and send money. By adding the ability to buy and sell Bitcoin, it gives people easy access to the crypto on one platform.

CashApp is a competitor who has already started doing this.

🔎 Key takeaways

  • Paypal’s Bitcoin integration is strengthening the mass adoption process leading to more global exposure
  • Paypal has over 320 million active users worldwide as of 2020
  • One drawback is you won’t be able to buy and sell your Bitcoin outside Paypal, your coins will remain on the app

Impact for Bitcoin

Bitcoin and paypal

How this starts to impact Bitcoin is further solidifying the adoption process.

For many, the ability to gain access to Bitcoin is stressful.

However, millions of people use PayPal. Having people use a platform they are already familiar with will build confidence and acceptance of Bitcoin.

Next it will have an impact on price. Bitcoin is subject to short-term supply and demand. Unlike a traditional fiat currency, Bitcoin has a finite amount that will ever be mined.

To mine Bitcoin, it takes robust computing power. That being said, if there is an influx of new users buying up Bitcoin it could have a positive impact on price.

Combine those two points and you have the recipe Bitcoin was built upon in the first place, and that is a decentralized currency. Bitcoin is a peer-to-peer currency where there is no middleman.

While PayPal in this case be a middleman, once mass adoption takes place there is little to no need.

The only parties involved will be the exchanges and other entities that help convert Bitcoin to other assets or cryptocurrencies.

Paypal integrates bitcoin

Drawback

There is one drawback to PayPal adopting Bitcoin and other cryptocurrencies is currently, you will not have the ability to move your crypto’s off the platform.

This means buying and selling will take place through the app and remain on the app. For those looking to buy and store offline, PayPal is not a good fit.

Going Forward

What this means going forward is we can begin seeing Bitcoin in other PayPal owned companies such as Venmo.

Venmo

In an article by Techcrunch.com, Venom will be on track to have Bitcoin integrated in their system alongside PayPal.

With Venmo being used for more causal people and quick payments, it can even turn the most causal of people into Bitcoin users.

While Bitcoin aims to be a decentralized currency, governments are looking at how to tax gains and get their fair share.

Hardcore followers will fight that no taxes are owed, but as crypto purchases can currently be tracked the IRS says otherwise.

All in all, the move by PayPal to bring Bitcoin to their platform is a huge win for Bitcoin and cryptos everywhere.

As more people get comfortable transacting with the currency, it will continue to grow as the currency of the future.

Litecoin, Bitcoin Cash, and Ethereum are other cryptocurrencies that will be added to the platform as well, giving people diversity and choice in their crypto wallets.

Ben Constanty

CEO, Smartlink

Disrupting online
payments with smart contracts.

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