About PayPal’s entry into the Bitcoin world. How will things be?

How will the world be now that PayPal has entered the crypto ecosystem?

The rumors were true. PayPal will finally agree to buy, sell and pay with Bitcoin and other crypt currencies. The service will initially be available to users in the United States. According to the announcement last Wednesday, October 21, this new element will be in the well-known payment platform in the „next few weeks“. Apparently, this inclusion arises from the alliance between Paypal and Paxos.

The news, of course, has fallen very well on both sides. Bitcoin’s market capitalization has increased and Paypal’s market capitalization has increased as well. In fact, the two assets are close in the same range. On the list of most valuable companies, Apple is number one, followed by giants like Microsoft and Amazon. Bitcoin would rank one place below PayPal, which ranks 21st with a capitalization of approximately a quarter of a billion dollars.

Will PayPal’s inclusion in the world of crypto-currency become a tax nightmare?

This is all a matter of confidence. Beyond the details, this news has raised our spirits. Suddenly, we’re all a little more optimistic about Bitcoin’s future today. And that’s obviously reflected in the general feeling. Which naturally translates into more buyers and fewer sellers. PayPal has always presented itself as a villain for the crypto community. So this change of heart has great symbolic power. The story undoubtedly has its dramatic effect. More than a service, the inclusion of Bitcoin in Paypal is a triumph of legitimacy for Bitcoin. The next frontier would be its acceptance on Amazon or some kind of similar measure by a Big Tech.

Many consider the adoption of Bitcoin in retail to be of utmost importance. That is, Bitcoin as a payment platform. Or, to put it another way, a libertarian PayPal. I must confess that this notion has never caught my attention. To buy a coffee we have many options. I’ve never understood this obsession of many bitcoiners with coffee. Personally, I don’t mind doing my daily expenses with fiat. Can I buy a coffee with gold? Can I buy a coffee with Apple, Amazon or Microsoft shares? Maybe. But it’s not very comfortable or convenient. However, the lack of „commercial adoption“ of these assets does not harm their viability as an investment.

I must admit that I have an obligation to my PayPal account. I use it only when I have no other option. Sometimes some purchases can only be made with PayPal. So, sometimes there’s no choice. If you want to buy something from a supplier that only accepts PayPal, you must have PayPal. I use PayPal sometimes, but reluctantly. To buy a coffee I usually prefer cash. To buy something from Amazon, for example, I find the debit card option very convenient. For me, beyond being an excellent investment, Bitcoin is particularly useful as a bridge in currency exchange. In short, every problem has its ideal solution. I don’t believe in universal solutions.

In other words, it doesn’t give me any insight into the commercial adoption of Bitcoin. However, as a tool, Bitcoin is a great adventure. It’s fun and enjoyable. PayPal, on the other hand, is a nightmare. It’s a third-world bureaucracy on the Internet. I’ve always said that having a PayPal account is like living inside a Kafka novel. Someone must have slandered Josef K. because without having done anything wrong, one morning his funds were blocked and he paid commissions until he couldn’t. The place is very nice and friendly, but the red flags, the blockades and the commissions are too much for my taste.

Wall Street pushed PayPal to record highs after news that Bitcoin and other crypto currencies will arrive on the platform in 2021

Of course, beyond my personal preferences, we must recognize that PayPal is PayPal. It is a giant with more than 305 million users (with an average balance of $70 and 40.5 million transactions per year). Worldwide, more than 22 million businesses accept PayPal. They handle over 100 currencies and are in over 200 markets.

In other words, PayPal is a very important network. I don’t like it very much. But it’s obvious that many of its users think that the service is wonderful. On several occasions, I’ve had to swallow my pride and use the service. That’s the power of having a well-established network.

Now, finally, PayPal is officially in the crypto world, following in the footsteps of its competitor Square. Square has had a very good experience with crypto and surely its success inspired PayPal. Square (Cash app), Robinhood, Revolut, eToro and Raiz are already working with crypto. What it involves