Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
Does paypal really buying bitcoin, if a paypal user buying (paypal) bitcoin or is the paypal-bitcoin just on the paper?
(Or is it just another shittoken?
The ppB? )
(Or is it just another shittoken?
The ppB? )Most likely they are buying real bitcoin. They are teaming up with Paxos Trust Company to hold the assets.
Do you have that in writing? FAQ or so?
Want to know this too.... Its pretty important!
https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398
Yes they are buying real BTC and they are using Paxos to do so. They are making money on the spread. I doubt they are taking possession of the coins. They are just facilitating the buying and selling and making 0.5% on each buy or sell. Paxos is holding the coins and is regulated so they are not going to do fractional reserve.
All this talk about fractional reserve is just FUD.
Do you mean this?
Quote
However, PayPal will charge a spread (or margin) between the market price we receive from our trading service provider (Paxos) and the exchange rate between US dollars and the Crypto asset displayed to the user. You'll see the final exchange rate before confirming any purchase or sale of Crypto.
https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398That doesn't sound like paypal (Paxos) really buying bitcoin