- US users sending funds outside the US will have to pay a $4.99 fee which is more expensive than sending money through Bitcoin
- Bitcoin’s transaction fee which is less than $0.2 makes the most dominant cryptocurrency a way more viable option to transfer money – as well as a more private one
Last year, the leading payment processor PayPal has announced new fees and restrictions that could have a massive impact on the cryptocurrency market. Knowing that cryptocurrencies offer low-fee and even fee-less forms of value transfer, PayPal dwarfed the competition with global adoption and brand awareness. The company even pointed to the ease of handling eBay transactions, personal funds and business funds that is going to happen on the platform real soon.
A $4.99 Fee For US Users Sending Payments Abroad (Plus 2.9% Charge If The Transaction Is Filled With A Credit/Debit Card)
Basically, PayPal’s new policies include a $4.99 fee for US users sending international payments (plus a 2.9% charge if the transaction is filled with a debit/credit card). There are similar measures implemented for users in other countries too. While the fees are not staggering, the new policies make international micro transactions unviable.
Even though Bitcoin once had higher fees than PayPal has now, the things have changed. Currently, sending a Bitcoin transaction is possible in under an hour for around $0.21 which is absolutely cheaper compared to PayPal. Despite the speed of PayPal, Bitcoin is currently many times cheaper and has an advantage of massive international awareness.
Fees Are Massively Increased, Making Small Transactions On PayPal Unviable
The massive increase in PayPal’s fee structure for sending money abroad definitely makes small transactions completely unviable and results in making feeless cryptocurrencies a more attractive option – especially in times when Bitcoin is hitting new records for its low fees and cost-effective methods of transferring funds at $0.029 per transaction on average.
What’s interesting is that PayPal won’t stop here. They will continue updating the fee structure and will certainly add new policies in the future. Their announcement has introduced policies surrounding user privacy too, stating:
“We’re changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us. If we have not verified your identifying information, a balance in your PayPal account can generally only be held in your PayPal account and transferred to a linked bank account or debit card.”
Linked bank cards generally require identification in the first place. This is another thing that makes PayPal vulnerable for many – and a thing that makes Bitcoin and other cryptocurrencies appealing.
Could Cryptocurrencies Like Bitcoin Replace PayPal?
As the most dominant cryptocurrency out there, Bitcoin is now a cheaper way to transfer funds when compared to PayPal. With a fee of less than $0.2 at the time of writing, Bitcoin is definitely more private and cost-effective when sending payments.
On a more general note, cryptocurrencies are far more appealing way of sending interpersonal payment. More secure and more affordable, they definitely enter a position of competing with the biggest online payment system in the world.
Frequently Asked Questions (FAQ) On PayPal Vs. Bitcoin: Transaction Fee Comparison
Below, we are listing some of the most common questions when it comes to Bitcoin vs. PayPal and the transfer of money through both platforms.
- Who offers better exchange rates for transactions?
If you are sending $1,000 to the UK from US, you need to look at the mid-market rate. While PayPal takes $4.99 out of your account for the transfer and an additional margin of 2.5%, it is easy to see that Bitcoin and its $0.2 transaction rate is a better option. The best way to find a good exchange rate, however, depends on your choice of a Bitcoin platform.
- Who offers lower fees for transactions?
If you are depositing money through Bitcoin, you are expected to pay $10 for a wire transfer and the ACH transfers are free. If you are buying Bitcoin from a US bank account, the fee is 1.49% with a $0.15 minimum, same like the one on the Coinbase USD wallet. If you are buying Bitcoin with a credit or debit card, the fee is 3.99%.
For sending money to another PayPal account within the US and Canada, there are no fees. However, for paying with credit or debit card or PayPal Credit in US and Canada, there is a 2.9% fee plus a fixed amount of about $0.30. For other countries, PayPal charges $2.99 to $4.99 depending on the country for using the PayPal balance – and 2.9% plus a flat fee that depends on the specific country you are sending the funds to as well as the fee based on the currency.
Lastly, the best way to know the fee structure is by using a Bitcoin vs. PayPal calculator that shows you the fee breakdown for sending any amount to any country from the United States.
For any questions in relation to the latest PayPal Policy, Make Sure To Click The PayPal Contact Us Button
Crypto Could Become ‘The Next Frontier’ In The War On Terrorism: US Treasury
“Terrorist organizations and their supporters and sympathizers are constantly looking for new ways to raise and transfer funds without detection or tracking by law enforcement. While most terrorist groups still primarily rely on the traditional financial system and cash to transfer funds, without the appropriate strong safeguards cryptocurrencies could become the next frontier.”The US Treasury undersecretary was also featured in the latest cryptocurrency news for her statement about the militant organization Hamas which asked for Bitcoin (BTC) donations via social media - and received more than $10,000 from two addresses.
“While this may not seem like a lot of money, a FinCEN analysis found remittances linked to terrorism averaged less than $600 per transaction. As we know, the cost of carrying out a terrorist attack can be very low. But the human costs to victims is always extraordinarily high,” Mandelker said.According to her, crypto could become a big part of this war. Specifically, she pointed out that cryptocurrencies are major developments in the field of value transmission, all of which requiring "a tremendous amount of energy and expertise" as she said.
“Absent appropriate safeguards to keep our nations and our communities safe from terrorists, rogue regimes, and others who threaten us, the U.S. will work with governments around the world to make sure that non-compliant networks and fintechs do not survive," Mandelker added.She also summed up with a statement featured in the altcoin news - which directly contradicts the declarations made by the US congressman Patrick McHenry who said that any attempts to stop Bitcoin are futile. However, the US Treasury undersecretary concluded with the following statement:
“The world that Satoshi Nakamoto, author of the Bitcoin whitepaper envisioned, and others are building, is an unstoppable force.”
Bitcoin Inches A Bit Lower, But $10,800 Target Remains
“$BTC: Short and simple analysis… Rising wedge. One final touch approx 10.4k – Looking at target approx 10k.”If the pattern does have bullish implications for BTC as the most dominant cryptocurrency, $10,000 will likely be a key support level which analysts closely watch. Any break below this level could spell trouble for its mid-term price action. The latest cryptocurrency news show that BTC may still target $10,800. Although BTC found some resistance in the mid-$10,400 range, its nearest major resistance level currently exists at roughly $10,800. A break above this price level could spark a massive upwards movement. Chonis Trading, who is another popular analyst in the Bitcoin and altcoin news, recently spoke about how Bitcoin inches lower, explaining that a decisive break above the $10,800 price level would be notable.
“$BTC – yesterday’s Bullish move closed right under the MA50, breaking thought puts the next notable #bitcoin resistance around $10,800+ area…if it can break that is,” he said.https://twitter.com/BigChonis/status/1172328397348864002 For now, the most dominant cryptocurrency is in a good position, with a dominance of 70.3% and a nice daily trading volume.
Coinbase May Announce An IEO Platform, Explores STOs Too
"Coinbase is carefully exploring not only the IEO space but also STOs [security token offerings]. The company may soon issue a proprietary exchange token."However, even though the report outlined that Coinbase may announce an IEO platform - it did not elaborate on the complete plans any further. As we can see for now, a lot of crypto exchanges are already offering their own IEO platforms. These include the names of Binance, OKEx, Bittrex, Huobi, Bitfinex and others. For those of you who don't follow our coming altcoin news, IEOs were sold as a safer way of investing in new blockchain projects. As reported earlier on our site, the short-term trends indicate moves away from IEOs - but longer term data indicates that the success of IEOs has been steadily growing overall since the term "IEO" became a buzzword at the start of this year. Still, there are discrepancies in reporting on IEO data. Despite the fact that Coinbase may announce an IEO platform soon, the number of total IEOs has collapsed - going from $1.1 billion in May this year to $125 million in June this year, according to TokenInsight. Other statistical pieces of data from TradeBlock which were cited in the Wall Street Journal show that IEOs raised $518 million in five months to the end of May. More importantly, their January total was around $10 million - something which increased to about $20 million in February and over $110 million in March, more than $220 million in April and around $150 million in May. Finally, CoinGecko's analysis was also in the altcoin news. In its official Q2 release, the company stated that IEOs raised only $262 million over the first six months of 2019. Even though every site has their own numbers and totals when it comes to IEOs, Coinbase may announce an IEO platform soon and trigger more growth and increased interest in this field.
Bitcoin Dominance Hits 2 Year High But Could Soon Face Resistance
“We have low and decreasing volume. Bearish divergence showing up on the MACD and RSI. Strong resistance ahead. RSI Overbought. Our main scenario is marked with arrows on the chart. The situation can easily change if the next resistance at 74.84 is broken with good strength and volume.”Conversely, some analysts also plotted the clear uptrend and predicted further gains as the altcoins get wiped out. The fellow trader Josh Rager also talked about how the Bitcoin dominance hits new highs. He shared his bullish opinion and claimed that the fundamentals such as the Bakkt launch could keep the dominance up there for a while yet. https://twitter.com/Josh_Rager/status/1168733275688513538 Last time Bitcoin moved up into five figures and rallied to a new 2019 high, the coming altcoin news showed a positive momentum and were pulled up with it. This time, however, they appear to be breaking down as Bitcoin continues to consolidate. Meanwhile, the total crypto market capitalization is at $264 billion as Bitcoin dominance hits new high. Right now, BTC's share accounts for 70.1% of the entire market.
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