Re: How degenerate is it buying and sitting on PayPal Bitcoin ?
Playing the devil advocate right now, but legally speaking, if you would have done this on Coinbase for example, wound't you still be liable for the same taxes?
Buying Bitcoin is not a taxable event. Selling it and converting to fiat is. That's why I make sure to always sell my coins FIFO, so I'm only owing long term capital gains.That's what I was aiming at, don't sell till they enable real coin withdrawals.
And if they chose to have a fractional BTC reserve? It would very possibly be their undoing.
They have a Bitlicense, which requires 100% reserves. Not a guarantee of anything obviously, but they appear to be doing everything very by the book. I'd be much more worried about a hack than intentional fractional reserve.I don't think they even need to run this scheme, Paypal has some serious fees, and BTC will not be the exception, yet they will make a lot of money, why risk not only these but their entire company and getting involved in this? Indeed Paxos might be cheating them behind their back and feeding false information but again, why would they do this, any financial gain is clearly outweighed looking at the consequences.
Indeed a hack might be something more serious but I still haven't heard of a serious cold wallet hack from a custodian, a real hack not an inside job.
I don't want mainstream adoption, I want INNOVATION.
The story of the BMW 8-series
