Originally published at: https://boingboing.net/2020/10/21/paypal-to-allow-customers-to-buy-and-sell-bitcoin-and-other-cryptocurrencies.html
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I’m sure people will use this ability wisely, bitcoin’s historic volatility will not be increased by more people’s ability to buy and sell it with the click of a mouse, and lots of people won’t end up losing a shit ton of money with a few speculators making out like bandits.
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Next on PayPal: Taking bets for your local dog track.
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I’m always puzzled by the hostility on BB any time bitcoin comes up. I’d be interested in a genuine discussion on what drives all the bitcoin hate… also, this IS fantastic news for bitcoin. People who think it’s a flash in the pan or peaked in 2017 just aren’t really paying attention. The coming bull run of 2021 is going to make 2017 look like peanuts.
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The coming bull run of 2021 is going to make 2017 look like peanuts.
This. This is the reason for the hostility. The perpetual inability to stop talking up your Ponzi scheme.
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I can’t speak to anyone’s “hate,” but I think a lot of the eye-rolling from my end comes from the evangelical nonsense that’s been put out by the (supposedly) true believers about the benefits of bitcoin, when it reality it’s just a vehicle for speculation. It’s a volatile asset that has allowed some people to make vast amounts of money, but it isn’t a viable currency and wastes a staggering amount of energy to accomplish almost nothing of value.
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bitcoin, when it reality it’s just a vehicle for speculation
Nonsense! Bitcoin has found plenty of applications such as money laundering and drug trafficking. /s
Yes, I’m bitter that I had figured I’d missed the trade when it hit $1… still… 
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Because it has lived up to none of the promises, and appears to be little more than a magnet for techbros and libertarian douchebros who wanna pretend that cryptocurrency means we don’t need governments anymore.
Bitcoin in particular is also contributing not-insignificantly to climate change, and it’s clear at this point it would never be viable as a general currency because of the exponentially increasing computing costs required just to pay someone with it.
It behaves in no way like a currency. It behaves like buying stock in an algorithm, so maybe we should call it a virtual stock instead.
How am I doing so far?
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THIS!
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Historically it has high volatility, but this year it has had lower volatility than S&P 500, Gold and Apple stock.
It is a digital asset. It has set inflation with a limited supply (unlike fiat), and is divisible and fungible.
I don’t have enough cash to buy real estate. And can’t buy a fraction of an apartment, nor would I want to take on mortgage debt in the middle of a global pandemic.
A savings account when interest rates are so low, and with inflation expected to rise above 2% doesn’t make sense.
I won’t buy gold or silver as the transaction costs are so high (as well as mining and storage).
Bitcoin as a long term store of value makes sense.
And yes, there is a huge energy use associated. High energy cost = high security. A metaphor would be a bank having 50,000 employees and 2,000,000 square feet of office space globally. The infrastructure creates consumer protection.
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There ya go! It’s a digital asset or commodity. It’s not a currency, I’d never pay for a coffee with Bitcoin.
It’s a digital version of real estate, stocks, gold/silver. And I’d never shave off 0.001 oz of a gold bar to pay for a coffee.
It’s a store of value and an inflation hedge.
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The coin machine in my grocery store lets you buy Bitcoin.
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But if I buy it - what do I own?
It’s being portrayed as an investment- but I don’t see any SEC filings.
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I can’t help but notice that nowhere in your description of its benefits do you list “use as a currency.” Because the actual supposed purpose of bitcoin, to use as a digital currency free from government interference (i.e. backing) is almost an afterthought at this point, for any legitimate purposes at least.
I get it, though–it’s possible to make (and lose) a lot of money speculating on bitcoin. I have nothing against anyone speculating with their own money, whether it’s putting money in bitcoin or Pokemon cards or Venezuelan bonds. If you believe bitcoin will give you a better return on your money than keeping it in cash or buying an index fund, god bless and god speed.
(not for nothing, though, referring to it as a dependable “store of value” is playing a bit fast and loose with that concept)
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You own bitcoin when you buy it. It’s regulated by New York State Department of Financial Services. It’s not a security (option, future, etc) so the SEC is not involved.
That’s like saying you own a piece of a unicorn when you buy my unicoin.
What do you actually own?
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So you don’t know what bitcoin is, but you think the SEC should review it?
Bitcoin is a digital asset. There will only ever be 21,000,000 in existence. It has a decreasing inflation curve, so the amount of new bitcoins that are produced will decrease over time, which increases scarcity. It’s been around for about a decade.
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So you can’t explain something you’re investing in?
Fewer Beanie Babies are being made each year.
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JuggaloCoin or I walk.
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I mean. We’re in the comments for a post about how Paypal will now allow users to purchase from all of its vendors by using bitcoin, so I thought that part was covered.
There are a bunch of Crypto-backed Visa debit cards popping up recently too. In the pre-paid debit card style.
Bitcoin will never be a POS transaction medium. The same way that index funds won’t be.
