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PayPal to support Ethereum and Bitcoin

newsroom.paypal-corp.com

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Re: PayPal to support Ethereum and Bitcoin

#52

Post by gus_massa »

scotty79 wrote: post #36
bilbo0s wrote: post #33

Earlier quoted context omitted.

...fleecing the poor worldwide...stablecoins don't change much in this Just Devil's Advocate, but isn't that a reason not to use stablecoins? I mean, I can participate in the fleecing of the poor without changing anything at all apparently.

It's a reason not to use dollars in any form if you are outside of US (and probably inside as well).

Usually the local money is even worst. (Hi from Argentina! Not so bad this year so far...)

Re: PayPal to support Ethereum and Bitcoin

#53

Post by hippich »

tootie wrote: post #40

When Bitcoin first hit public consciousness the knock from economists was that it had a built-in deflationary spiral and that seems to be true. The price keeps going up and up with a few noted bumps. Rising value is great for speculators but it's a death knell for an actual spending currency. You'd be nuts to spend it if you expect it to appreciate. That's why central banks aim for low but positive inflation.

I think the difference here is that Bitcoin is predictable deflationary vs fiat being unpredictable. If you can know in advance the rate, it becomes sorta like an investment vehicle, where instead of dividends you get appreciation of the assets.

To look at it another way - why one would spend $100 from their brokerage account if they know a year later they can spend $110?

Re: PayPal to support Ethereum and Bitcoin

#54

Post by JumpCrisscross »

this_user wrote: post #38
dzonga wrote: post #11

one thing with these stablecoins is they're pushing to buying of 'us-debt'. congrats if you buy a stablecoin - you've effectively financed the US gvt at 0%. now the US gvt can inflate away that debt at 0 cost to them, and pass on the cost to you. that's why a bunch of these stablecoin companies are pushing it as a way to save for people in distressed economies. what a way to steal from the poor. that's why the crypto…

That's not how any of this works. You may not receive any interest on your stablecoin balance, but the issuer certainly does. Why would they offer to lend money to the US government at zero when they can get the market rate and pocket it? What's more, these are mostly short-term instruments This means any increase in inflation will be reflected in their yield.

> You may not receive any interest on your stablecoin balance, but the issuer certainly does

A bunch of zero marginal cost capital funding purchases of U.S. debt would absolutely push down rates, possibly lower than inflation, because if you’re a stablecoin issuer you’re not constrained by yield.

This is a dumb-money venture. And if there is this much money that is this dumb, Treasuries aren’t the worst place for it to go.

Re: PayPal to support Ethereum and Bitcoin

#55

Post by JumpCrisscross »

toast0 wrote: post #43
scotty79 wrote: post #34

Earlier quoted context omitted.

Aren't they sort of printing new dollars privately accelerating the fleecing? Or am I wrong?

Not anymore than a USD deposit account. Just with extra steps.

> Not anymore than a USD deposit account

These typically pay interest. (Or have retail servicing costs attached.)

Re: PayPal to support Ethereum and Bitcoin

#58

Post by adamors »

I’ve happily avoided Paypal in the last .. 6 years or so. Ever since Revolut came up with disposable cards I’m much less hesitant to give my card details to someone, also PP never stopped being shady and user-hostile in the meantime.

So I’ll continue to avoid them in the next 6 years as well.

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