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'If You Buy Bitcoin on PayPal, You Didn't Buy Bitcoin,' Crypto Expert Claims

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Published on:
December 15, 2020

Andreas Antonopoulos says PayPal embracing crypto may be good for Bitcoin's price, but it involves sacrificing some key principles.

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People who buy their Bitcoin on PayPal are “second-class citizens” who don’t actually own any cryptocurrency, according to Andreas Antonopoulos.

 

The Bitcoin educator isn’t a fan of such payment platforms — and warned purchasing crypto through this mainstream platform means investors “only get a fraction of the full rights and privileges that accrue to someone who has control over their own keys.”

 

In a video posted on his YouTube channel, Antonopoulos warned that BTC faces a “real risk” if the crypto asset continues to be owned in large numbers by the likes of MicroStrategy, Square and PayPal. He explained:

“The real risk to Bitcoin — and this is where things get tricky — is if more and more Bitcoin is owned by intermediaries like this, held in the treasuries of companies like MicroStrategy or Square or PayPal or JPMorgan Chase.”

Antonopoulos claimed that BTC’s future could be plunged into danger because intermediaries whose interests “are not aligned with the fundamental principles of decentralized financial sovereignty” would end up being participants in consensus.

 

And although PayPal’s entry into the space and exchange-traded funds may help drive the markets upward, Antonopoulos says this isn’t the point:

“Yes, numbers go up. Yes, to the moon. Yes, hodl, hodl and all of that b*******. But at the end of the day, what you’re doing is sacrificing principles in order to get price appreciation and that story does not have a good ending.”

 

Read More on Alexandria!

We looked at some of the pros and cons associated with buying crypto on PayPal in this Alexandria post. Take a read!

 

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