Guide to BitCoin vs Paypal

[Hayden]

Okay, so recently people have been complaining a lot about their PayPal's getting limited and stuff like that. There has also been many threads posted to ask if they should switch to Bitcoin or not. So, I created a list of the pros and cons of each payment method.

Please comment about things I should add to the list. Thanks!


PayPal:

PROS:

• Widely used. Most people nowadays that deal on the internet have a PayPal account. It is a easy way to pay for things without directly using a credit card. So, most transactions that will take place (At the current moment) that are online are through PayPal.
• Easy to manage. PayPal has a easy way to add money to your account, send it, and receive it. It is a amazing website that has revolutionized the online payment industry.
• Secure. PayPal is a very secure platform (as it should be) and you will probably not get your information stolen unless of course someone logs into your account.

CONS:

• Your account can be limited, which makes large payments difficult for people under 18 along with many other issues.
• You need to get your account verified to do larger payments, and need to upgrade to a business account to do even larger ones.
• Customer service, while better than company's like TMobile, is relatively slow and it can take days to get a response to things like chargeback requests.
• Small taxes.

Bitcoin:

PROS:

• Isn't controlled by a government, company, or individual. This has benefits for many reasons that differ for different people.
• Easy to invest in. Buy buying bits or bitcoins, you can gain money by the worth of the currency going up.
• Basically impossible for fake-bitcoins to be added to the system. Each transaction goes through a process where it gets checked by thousands of computers to see if it is legitimate. The proccess is a part of BitCoin mining which is a large industry that makes money by solving math problems created by the system.
• information is never shown. This is self explanatory.
• Many company's are starting to accept bitcoin as payment for everyday items.
• Bitcoin transactions cannot be changed once they occur. People who may try to scam you can't chargeback.
• Low transaction fees
• Bitcoin does not care about your age and cannot be limited. This is a major benefit because people can lose thousands of dollars due to their PayPal being limited because they are underage.

CONS:

• Many people do not understand it. Since it is a less well-known method of payment, it isn't used as often as methods such as PayPal.
• You can lose money. Since the bitcoin market fluctuates, you have no clue if your bits are going to be worth more or less each day.
• Still developing. We have no clue if there are possible exploits in the system, since the system isn't widely used. There very well could be a major bug that could cause all of your information to be leaked.
• Bitcoin transactions take a bit of time to go through. Because of the tight security to prevent fraud, transactions take around 0-40 minutes to go through.
• Bitcoin transactions cannot be changed once they occur. This could lead to you possibly getting scammed.

Thanks for reading. If you have any questions or things you would like to add, comment below. Leave a like if this helped you. :tup:

Why do you use the payment method you do? Comment below.

 

[Marth]

btc transactions are irreversible: both a pro/con depending on the case scenario, add that in.

 

[Hayden]

btc transactions are irreversible: both a pro/con depending on the case scenario, add that in.

Thanks

 

[Hayden]

Your paypal is only limited mostly if your underage =_=

Yeah, but most of us are.

 

[Hayden]

I'd say another pro is the low transaction fees, usually only like a $0.11 miners fee. Also the "all payments are final" thing could be a pro in some ways, it's great ease of mind getting paid in Bitcoin knowing you can't get charged back 89 days later...

The market fluctuations are a total bitch though.

Already put it as a pro as well. I'll add that too.

 

[Ivain]

"makes large payments impossible" Again, only if you're underage and/or your account is not verified enough for the amount you're going for.
If you're not underage, you need to fully verify your paypal if you want to lift your receiving limit past $2500 (at least in the EU).
If you want to go beyond $25000, you need a business account, which as far as I know requires you to have or be in the process of registering a business.
All in all, if you stick to the rules, you're not gonna be limited, period.
The only ways you can get limited if you're not underage and have no receiving limits is by using too much F&F (something a lot if people like to do), mess around with chargebacks too much, or get suspected of some criminal activity.

 

[Hayden]

Edited :tup:

 

[Ivain]

You don't have to have a registered business, you just have to have an already existing paypal account. I've done it myself.

well, that's even better. Its just that I heard from someone else they had to have a business for something to do with paypal.

 

[Stephen]

Bitcoin doesnt really care about age its your own bank and wont get limited its good if you are under 18

On another note most people under 18 won't use Bitcoin so

 

[Hayden]

On another note most people under 18 won't use Bitcoin so

Well, people on here do.

 

[Hayden]

Anything else I need to add?

 

[Hayden]

CONS: Currency Exchange rate for BTC

I don't see how this deserves to be a con.

 

[Hayden]

How isn't it a con paying more for less btc? Example $200 paypal for 150 bitcoin
Any well known BTC trading site like Paxful takes a hefty tax same with LocalBitcoins etc.

That's more than the actual tax is. Also, this differs from different sources and you can get it for around the exact value on certain sites. You just often need a bank account which most people do not have that are on this site.

I also already put "small tax" or something along those lines for when you send a payment, you lose a small amount (a few cents)

I don't recommend using BTC trading websites because they are often a scam.

 

[Hayden]

Anything else anyone would like me to add?