Interesting question about PayPal's role in the early days of Bitcoin exchanges! From what I've learned, PayPal was indeed one of the options for buying Bitcoin in the early 2010s, but it had its limitations and risks.

In the early days, PayPal's policies were not very crypto-friendly, and they had a history of freezing or limiting accounts that dealt with Bitcoin. This made it challenging for users to buy or sell large amounts of Bitcoin.

If someone wanted to buy over $1000 worth of Bitcoin in early 2010, PayPal might not have been the best option due to its limitations and risks. Other exchanges like Mt. Gox (which was once the largest Bitcoin exchange) or New Liberty Standard Exchange might have been more suitable.

PayPal's reputation took a hit due to its inconsistent policies, account freezes, and chargebacks. Many users experienced difficulties withdrawing funds or had their accounts restricted without warning.

From my own experience, I've found that using reputable and specialized cryptocurrency exchanges has been a more reliable and efficient way to buy and sell Bitcoin.