Bitcoin experts point out at least nine reasons why the introduction of the digital currency made the PayPal model of money transactions looking somewhat archaic.
9. Lower commission rates
Typically, this is the first advantage of virtual currencies that you can hear about from Bitcoin experts and enthusiasts. You’re probably aware that PayPal imposes 3% fees on sales profit or the transfer of funds to/from credit/debit card.
8. Community support
You should think about the Bitcoin currency as a component of an entire network of Bitcoin. This means that the protocol itself, as well as its supporting infrastructure are always ready to evolve and improve to meet the changing needs of consumers and users.
PayPal was not created with this in mind and has a much narrower field of development potential. In other words, while PayPal can afford to pay for the work their team of talented programmers does, the company still won’t be able to engage in their development as effectively as the decentralized network of Bitcoin developers scattered all over the world.
7. Additional features
Bitcoin is resistant to external influence, shocks, economic downturns, etc. Moreover, this crypto-currency generally offers a greater variety when it comes to the choice of currency.
A repressive regime or PayPal can seize or freeze your assets “for security reasons”, but none of these would happen to a Bitcoin user who is able to store and control their own money. In addition, the user has more options to save money, such as paper wallet or cold storage, which limit the risks of potential digital attack.
6. A truly global currency
PayPal is not available in Iran, Afghanistan, North Korea and Haiti.
Bitcoin, on the other hand, is the first truly transnational currency, because, just like the Internet, it knows no physical boundaries. In other words, it can be controlled at the local level, but it can not be banned, except if you cut off electricity in the whole world.
Bitcoin might become the only solution for people living in repressive regimes. Those using the virtual currency can circumvent government financial monopoly and create their own local economy.
5. No centrality
The decentralized nature of Bitcoin implies that the currency and its network are not controlled by any organization. Bitcoin currency is often referred to as unreliable. Really? But what Bitcoin experts say is that BTC payment system significantly improves network security of the network and has no points of failure (e.g. In case of a DNS attack).
In addition, one of the biggest problems reported by PayPal users is that their accounts can be frozen at any time. In a decentralized network this simply cannot happen, because there is no central coordination centre or a Bitcoin CEO capable of blocking your access to your electronic wallet.
In order to use PayPal you will need: 1) the Internet access; 2) a credit card. And Bitcoin allows you to send funds via e-mail or SMS using even your antediluvian Nokia 3310.
Would anyone argue then that Bitcoin does not offer new opportunities, particularly in developing countries? Now their citizebs will be able to use the virtual currency bypassing the previous stages of the evolution of remittance.
While Bitcoin is not a completely anonymous currency, it can still provide a certain level of anonymity or pseudo-anonymity of its users if they know how to manage their digital wallets.
Anonimity is what PayPal users (especilly the ones making international transactions) dream of: they are obliged to regularly go through cumbersome procedures of filling in the data forms, and specifying where the money comes from and for what means it will be used.
2. No chargebacks
In case with PayPal, chargebacks and return payments often pose a problem for merchants, as unscrupulous customers can sometimes take advantage of the refund policy in order to get the product and return their money.
When bitcoins are sent, the transaction can not be canceled or suspended. Bitcoin transactions are always final.
Yes, Bitcoin experts say freedom is one of the most important advantages of this crypto-currency. It may certainly seem impossible, but imagine that there are almost 4 billion people on our planet who don’t have bank accounts and therefore are unable to use PayPal. Bitcoin has the potential to allow almost half of the world’s population to access the global banking services. And that is what makes the FREE Bitcoin system truly GLOBAL.