Tag Archives: paypal

TechCrunch: Is Bitcoin the new Paypal?

TechCrunch posted an article today comparing Bitcoin to the early Paypal days—when fraud, theft, and technical issues ran rampant. TechCrunch’s headline would probably be a bit more accurate if “Mt. Gox” were substituted in place of “Bitcoin” (and to be fair, the body of the article mostly focuses on the current problems plaguing Gox when drawing comparisons to Paypal’s early days), but the write-up is interesting nonetheless.

I do remember a time when Paypal was regarded in much the same way that Bitcoin is today. Back then, trusting a fledgling internet company to “send money across the web” was something that crazy people did. Times have certainly changed, and it’ll be interesting to see where the public perception of cryptocurrency is in five or ten years.

In related news, Mt. Gox issued a short update today apologizing for the continued delays while they work through their issues. What’s up with the “security problems” that Gox claims forced them to relocate? Rumor has it that they’re referring to the three-person protest currently taking place outside their headquarters.

CNN asks: can Bitcoin replace Paypal?

bitcoinCNN currently has a front page story up that asks whether or not Bitcoin will eventually replace Paypal.

Interesting timing, as earlier today CNET ran a short piece in which Paypal president David Marcus expressed his enthusiasm for Bitcoin, and admitted that he even owns some.

Marcus seems to get Bitcoin. My guess is that Paypal will figure out how to work cryptocurrency into their business model at some point down the road when the wild swings in value calm down—perhaps acting as a trusted online wallet and/or escrow service.

PayPal president “kinda thinking about” supporting Bitcoin

David Marcus, president of PayPal, says that he is considering the possibility of supporting Bitcoin as a PayPal funding instrument in the future:

(skip to 2:50 in the video for the Bitcoin comments)

A transcript of Marcus’s response:

So I’ve been spending a lot of time looking at [Bitcoin], and it’s truly fascinating actually: the way that the currency’s been designed, and the way that inflation is built in to pay for miners, and all that is truly fascinating. I think that for us at PayPal, it’s just a question whether Bitcoin will make its way to PayPal’s funding instrument or not. We’re kinda thinking about it.