Internet and e-mail policy and practice
including Notes on Internet E-mail


Click the comments link on any story to see comments or add your own.

Subscribe to this blog

RSS feed

Home :: Money

15 Mar 2018

Paypals vs. Bitcoins Money

I have learned about a dandy new cryptocurrency called Paypals. How does it stack up against Bitcoin and other currencies?


Can pay anyone with a Bitcoin wallet, with a mining fee

Can pay anyone with a Paypal account, no fee

Over 10 million wallets

Over 100 million accounts, plus a billion credit/debit card users can pay you (with a fee.)

Don't need a bank account to pay other users.

Don't need a bank account to pay other users.

Do need a bank account if you want to turn them into regular money.

Do need a bank account if you want to turn them into regular money.

Price is, uh, whatever it is.

Pegged 1:1 to US dollar

Exchanges have collapsed, taking clients' money with them.

Doesn't lose people's money.

Some exchanges licensed and audited, some not

Publishes audited financial reports, regulated by SEC and other agencies

Tether is 1:1 to US dollar but nobody believes it.

Paypal is 1:1 to US dollar and everyone believes it.

Can exchange to other cryptocurrencies for some fee

Can exchange to other Paypals (C$, £, €, etc.) for 3% fee

If you lose your password, your bitcoins are gone.

If you lose your password, you can call their account recovery department.

Widely accepted for illegal stuff.

Widely accepted for legal stuff.

posted at: 14:00 :: permanent link to this entry :: 1 comments
posted at: 14:00 ::
permanent link to this entry :: 1 comments

comments...        (Jump to the end to add your own comment)

I want to give you my thoughts, I hope you find them agreeable but if not please point out what you find disagreeable and perhaps we can discuss it further.

> Price is, uh, whatever it is. > Pegged 1:1 to US dollar

The US dollar is propped up by developing nations which require it in order to trade. It's been almost 8 years since the UN recommended a change to a different international standard. There's a bunch of other stuff we could point out, like Petroleum reserves and the proxy wars the United States fights all over the world, but I think you get the point; the value of the Dollar isn't static, and it affects a lot more then just Americans.

>Can exchange to other Paypals (C$, £, €, etc.) for 3% fee

If bitcoin became an international standard similar to the US dollar, then this is a moot point. The only reason you would trade it for other cryptocurrencies would be for their domain-specific qualities (i.e Monero for people who want privacy, Litecoin for people who want cheaper transactions). There's no real difference between national currencies in their utility; you are exchanging it for no reason than the privilege to transact in a country.

I was born in 1993, and I have been blessed to grow up around the internet. It is truly one of the biggest marvels of our time, and the biggest reason for it is that it removes borders. I could be writing this from Somalia right now, or Russia, or India. Imagine if we had to pay to access websites in a different country? Would the world-wide-web be as great if it wasn't world-wide?

I think you do Bitcoin a disservice by regarding it as just a method of payment; it's the fact that it is open, and worldwide that is its biggest strength. A worldwide currency would help solve many issues for some of the most misfortunate in the world; not just for paying for Netflix and some Numatic vacuum bags for your Henry hoover on Amazon.

You were older than me at the advent of the internet; were you similarly pessimistic at that time?

I apologise if I come across rude; it's not my intention.

Warmest regards,

(by somali_nomad 16 Mar 2018 01:30)

Add your comment...

Note: all comments require an email address to send a confirmation to verify that it was posted by a person and not a spambot. The comment won't be visible until you click the link in the confirmation. Unless you check the box below, which almost nobody does, your email won't be displayed, and I won't use it for other purposes.

Email: you@wherever (required, for confirmation)
Title: (optional)
Show my Email address
Save my Name and Email for next time


My other sites

Who is this guy?

Airline ticket info

Taughannock Networks

Other blogs

Internet Society Send An Open Letter to the Government of Canada
152 days ago

A keen grasp of the obvious
New Hope for the Dead
215 days ago

Related sites

Coalition Against Unsolicited Commercial E-mail

Network Abuse Clearinghouse

© 2005-2020 John R. Levine.
CAN SPAM address harvesting notice: the operator of this website will not give, sell, or otherwise transfer addresses maintained by this website to any other party for the purposes of initiating, or enabling others to initiate, electronic mail messages.