In their latest press release, PayPal declared about the launch of the "Checkout with Crypto" service. Starting from today, USA users can now use their crypto to purchase goods & services.
Let me summarize the whole news in the following points:
- Checkout with Crypto option available only for the USA users
- Bitcoin, Litecoin, Ethereum, or Bitcoin Cash can be added to your PayPal wallet
- Transactions will be feeless
- Crypto will be converted to Fiat & only the conversion charges will be levied by PayPal to the paying customer
- All merchants will receive their payment in Fiat
- One can send crypto to their PayPal wallet but cannot withdraw it
You can read the full press release here: https://newsroom.paypal-corp.com/2021-03-30-PayPal-Launches-Checkout-with-Crypto?sf141107167=1
This news is going to make so much noise which is quite great if you consider Crypto Adoption. I am excited to see how it all pans out in the next 6 months or so.
USD Is Not Backed By Gold, PayPal Clarified
In the same press release, they mentioned something which is worth mentioning to an average joe who thinks that Fiat has some concrete backing of GOLD or Silver or anything thing that has value.
If you are reading this, there is a good chance that you are one of those people and this is surprising to you. Fiat is just backed by the government's promise to pay. Nothing else! It's funny that PayPal had to clarify this in their latest press release which is about their "Crypto Checkout" service launch. 😂😂
Fiat is like Monopoly Money. It has value as long as you are part of the game. Outside the game, it's worthless. Fiat is controlled by a central entity that can easily manipulate its distribution and price. They can print as much as they want to, right? The vast majority of people do not know or understand this reality and they feel that this is the only right way economies should work.
Meet Bitcoin
Bitcoin is the first & most famous cryptocurrency in the world. There are others, which are far superior and better than BTC but for the sake of my readers, I am taking 'BTC' into the picture. Bitcoin is backed by more than 80,000 decentralized nodes that process daily transactions worth billions of dollars, in addition to constantly auditing the transparent Bitcoin ledger. This ensures the honest behavior of the members of the network.
Bitcoin is backed by Scarcity, Divisibility, Utility, Transportability, Durability, and Counterfeitability. Fiat fails to attain these key attributes which can contribute to the success of any currency.
Obviously, you cannot destroy Bitcoin in the same way you can destroy your Dollar Bills! Even though Bitcoin has its own challenges, still it is a stepping stone towards a superior 'money' system & a store of 'value'.
