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[UPDATED 2019] New PayPal Policy Makes Bitcoin A Cheaper (Private) Alternative

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PayPal

Here is a quick crypto news recap from last year on PayPal’s new policy targeting Bitcoin:

  • In April 2018, PayPal revealed that it is updating its privacy policy to ban unverified accounts
  • 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.

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A screenshot that shows the fee breakdown on PayPal and funds sent to other countries.

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.

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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. 

dc forecasts paypal - [UPDATED 2019] New PayPal Policy Makes Bitcoin A Cheaper (Private) Alternative

For any questions in relation to the latest PayPal Policy, Make Sure To Click The PayPal Contact Us Button

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com

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Analysis

Tesla (TSLA) IS The Top Performing Asset In 2020, Surpassing BTC

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tesla
The altcoin news and rumors today show that Bitcoin (BTC) is not the best performing asset of 2020. In fact, the biggest gains seen on the market account to Tesla which traders on the NASDAQ ticker TSLA as the asset which can actually claim this title. As the Quantum Economics' expert (and a former eToro analyst) Mati Greenspan recently said, the price of Tesla surged higher by 12% in after-hours trading on Wednesday due to a stellar earnings report. As such, it is "ahead of BTC by a hair" and TSLA is up by 38.77% in the past 30 days while Bitcoin is up by relatively mild 30%. The Bitcoin price news show that the asset managed to add a third to its price. However, it still falls short when compared to TSLA, as Greenspan's tweet below suggests. https://twitter.com/MatiGreenspan/status/1222644302469312513 The extremely strong performance by the electric car giant has brought Tesla (TSLA) and its valuation above the one of the automobile incumbents Volkswagen and Ford as per Google data. This has many asking the following questions: What is behind Tesla's major performance and can these gains continue? According to many, this is entirely possible. There was a big time in 2019 when a lot of analysts thought that Tesla is on a downward spiral mainly because of the release of the Model 3 which was very slow. Musk was also in the midst of some troubles with the SEC and a couple of tweets that he made. However, Tesla (TSLA) outgrew all of this and surged around 240% since its bottom at $180 in June of last year. As of the time of writing this article, the shares of the company are valued at $648 while the official price remains $580. Tesla traded 12% in the after-hours session and added 5% on Wednesday. This latest rally has been attributed to many factors. The biggest one is the company Q4 earnings report which topped the expectations of Wall Street. Tesla reported that its revenue rose to $7.4 billion and is up by 2% year-on-year for the quarter. The number of Teslas sold also surged and hit 367,500. According to many, TSLA is now outperforming Bitcoin and there is a chance that the leading cryptocurrency can outpace Musk's brainchild.
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Analysis

Bitcoin On A Faint Note This Monday Towards $8K: Analysis

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Bitcoin on
Bitcoin on a faint note today as the market showed a lack of sense of direction due to low volatility as we are reading more in the latest bitcoin news today. The benchmark cryptocurrency was trading at around $7,575 after rising up by 0.8 percent since the market opened. The move upside led the asset to get its net month-to-date gains up by 0.4 percent. It further revealed that the traders fear to make big moves after Bitcoin established the seven-month low in November which was followed by an alarming pump and dump behavior on spot exchanges in the starting week of December. The situation brought bitcoin to get closer to the possibility of undergoing further breakdowns and the price even rejected advances above the $14,000 level which was settled earlier this year. Bitcoin is now under by more than 50 percent and continues to make fresh declines in the descending channel, therefore, Bitcoin on Monday, opened with a faint note. The cryptocurrency near-term rallies met rejection close to the upper trendline of the Channel, the price tested the levels between $13,500 and $12,000 since July but didn’t transform the upsides into the full-fledged breakouts. In the meantime, it kept on establishing new lows towards the $6,526 indicating that the traders have not found a strong bitcoin accumulation area yet. In the charts, we can see that the price is struggling to register fresh gains which earlier served as support to Bitcoin’s bounce-back attempts. Over the past ten days, Bitcoin is in fluctuation mode inside what seems to be a Symmetrical triangle. The two converging trendlines create a string of peaks and troughs moving forward a similar slope. The height of the triangle is also close to $800 which means that its breakout will result in a price move of about the same proportions in either direction. With the volumes going down and bitcoin gets close to the apex of the triangle, there is a strong likelihood of a further breakout in the direction of the previous trends. This move could crash bitcoin towards the $6,000 area. the initial short position towards the $6,500 level from around the current market price looks decent and maintaining a stop-loss order above the triangle is standing above $7,570.
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Analysis

New Jump For BTC: $8,500 Is “Again On The Table” According To Analyst

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new jump for btc
Ever since Bitcoin (BTC) tapped $6,500 in late November, we could see that analysts were wondering if the bottom is really in. In the latest Bitcoin news, we can see that the leading cryptocurrency managed to post a new jump for BTC by 20% from $6,500 and hit $7,850 just a week after that. At press time, BTC is trading at $7,500 and is seemingly trying to establish a market trend for the coming week. Even though some say that Bitcoin is unable to move past the resistance in the high $7,000 area and is decisively bearish, one analyst thinks that the odds are leaning in favor of bulls. The popular trader Mr. Chief (also known as Halo Crypto) recently said that there could be a new jump for BTC and that the ball is finally entering the playground of the bulls. He also noted that the inverse chart of Bitcoin shows that the cryptocurrency has broken below (above) a key - a trend line which has been in place for over six weeks. The asset is right now situated in a descending channel which implies a potential move to $8,500. A move to $8,500 would mark a 15% rally from the current price levels. https://twitter.com/HaloCrypto/status/1203144682177548288 However, it is not only halo that is expecting a new big jump for BTC. According to previous reports by Willy Woo who is a popular on-chain metrics analyst, a proprietary indicator lets him believe that bulls will soon gain the upper hand again.
“On-chain momentum is crossing into bullish [territory]… The bottom is most likely in, any [move] lower will be just a wick in the macro view,” Woo said.
There is also Glassnode, which is a crypto centric on-chain intelligence firm which recently noted that their metrics suggest that Bitcoin is bottoming and is slated to revert higher in a "strong" fashion. It is the Market Value to Realized Value (MVRV) which is implying the above mentioned, as well as showing that the crypto asset investors are believing in the topic. A reading of this would mark a bottom for the cryptocurrency market soon, too. At press time, Bitcoin is trading at $7,563 while the total market cap is $204 billion and the trading volume sits at $49 billion.
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Analysis

Bloomberg Analysts Expect Bitcoin’s Price To Spike Past $10,000

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bloomberg analyst
Bloomberg analysts expect that bitcoin’s price will surpass the $10,000 price range despite its low levels of $7,400 and $6,600 as previously reported Bitcoin price news. Bitcoin had a struggling second half of 2019, dropping from a year-to-date high of $14,000 in June to $7,400 as the Bitcoin buyers filed to step in amid the selling pressure seemingly catalyzed by the Chinese regulation of digital assets as the operators of multi-billion dollar Bitcoin scam selling the coins. Despite the price backdrop, Bloomberg analysts including Mike McGlone of the business media giant’s intelligence unit believe that Bitcoin has a strong positive outlook heading to the 2020 and the next decade as well because of many factors. This confluence of factors McGlone explained that will bring the cryptocurrency back into the five-digit range in the close future which will be a welcoming surprise for many investors in the industry who began thinking that bitcoin has reentered a ‘’crypto winter’’ state again. Bloomberg’s McGlone believes that the bullish case for the Bitcoin price is in the forming as long as the key support of $6,500 holds in the near future. The analyst said that it is ‘’only a matter of time’’ before Bitcoin breaks the key resistance of $10,000. The analyst first explained that as gold rallies, bitcoin will too. While the precious metal is right now trending lower after it peaked last summer in the middle of the trade war talks, the macro picture for the gold is looking favorable heading into 2020 with a slight recession restart of the trade war due to the latest Chinese regulations. Second, McGlone explained that a perfect storm will be building for the cryptocurrency in terms of the basic premises which are mass adoption and fixed supply cap. He said:
 “Bitcoin is winning the adoption race among crypto assets and is becoming increasingly scarce, which favors price appreciation. Plenty can go wrong with a nascent asset, but unless the basic premises reverse, there’s a higher probability to sustain price appreciation vs. Depreciation.
He also tried to support the main idea that the halving event will act as a negative supply shock for the marketplace on the simple supply and demand economics.
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