Antonopoulos – PayPal Bitcoin Isn’t Real Bitcoin
Not your keys, not your Bitcoin
Antonopoulos Slams PayPal Bitcoin Saying it Isn’t Real Bitcoin
“Bitcoin’s key characteristics, and what makes it an attractive proposition for so many, lies in it being a peer-to-peer decentralized value system.
With that, some say PayPal, as a middleman, has no business interfering with that dynamic.
To add, trading cryptocurrency on PayPal comes with conditions attached. According to their FAQ, users cannot transfer crypto in or out. Neither do they get a private key, meaning the payments giant technically owns cryptocurrencies purchased on its platform.
On that, Antonopoulos waded into the discussion by saying Bitcoin purchased on PayPal is not real Bitcoin. He states that PayPal Bitcoin increases exposure to counterparty risk, in that users have no say or insight into what goes on behind the scenes.
‘If you buy your Bitcoin on PayPal you didn’t buy Bitcoin. What you bought is, exposure to the price of Bitcoin mediated by a custodian who you hope is doing good risk management practices. But, who you cannot audit for their actual existence of reserves.’
With that in mind, PayPal Bitcoin should only appeal to noobies, who, for whatever reason, prefer the involvement of a middleman.”