Not true, or at least not the whole truth.
Bitcoin is simultaneously like:
1. Cash in the mail
2. Bullion mined from the ground
3. Physical commodity
4. E-currency
5. Paypal
Bitcoin is many things, limiting it only to money transfer is not very accurate IMHO.
Clearly this is invention of a genius, to say the true.
I can agree with 1, 2, 4, maybe even with 4.
But no way I can compare BTC to Paypal! The latter is a service involving digital money: eg, you are offered a buyer's protection program, safer (?) use of your cc online, etc... Paypal is more taylored to fit Ebay's needs, and is not really just about moving money.