In today’s headlines on our DC Forecasts crypto news site, we are talking about PayPal which is a leading payments processor valued at $97 billion and its high percentage-based fees, which seemed to have hit a high in Switzerland making a lot of merchants furious.
The high transaction fee of PayPal has led merchants to explore alternatives such as cryptocurrencies (like Bitcoin) all in order to minimize expenses. For the normal users on PayPal, a transaction of one user to another in the same country is charged at a base fee of 2.9%. However, if the transaction is sent to a user in a different country, the conversion rates often take the fee from 2.9% to over 5%.
It all started when one Switzerland-based merchant shared a screenshot of a transaction covering a payment he received from a buyer with seller protection. The user shared this on a a cryptocurrency-related subreddit (/r/cryptocurrency) where he showed that for a purchase of one deck of crypto playing cards worth 14.9 CHF ($15 USD) PayPal charged a fee of 1.2 CHF which is an 8.12% fee.
Even though the payment is small, on a higher scale this can lead to many expenses for merchants which come atop the wide range of costs of dealing with products and services.
As the Swiss merchant with this issue wrote:
“Now I wished I never used PayPal, got a lot of money stuck for another 3 months (6 total) and they give me no reason at all. After being a customer of theirs for 6 years one day they decided nope were gonna hold your money, ban you from our service.”
Currently, the infrastructure around digital assets must strengthen with companies such as ICE and Bakkt building services around it. Only this way merchants can start integrating cryptocurrencies as an alternative to payment processors.
BitMEX CEO Arthur Hayes: Bitcoin Will Test $10,000 In 2019
“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. [...] $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”He also talked about the atomic swaps and distributed exchanges, the tracking of ICO tokens, the anatomy of the next global financial crisis and many other topics. In the report named "The Road To $10k" Hayes said:
"All is not lost; nothing goes up or down in a straight line. 2019 will be boring, but green shoots will appear towards year end. The mighty central bank printing presses paused for a while, but economic sophists could not resist the siren call of free money. They are busy inventing the academic crutches (here’s looking at your MMT), to justify the next global money printing orgy."While pointing to the last quarter of this year as the crucial for BTC, Hayes concluded:
"Green shoots will begin to appear in early Q4. Free money and collective amnesia are powerful drugs. Also after two years of wage cucking, punters should have a few sheckles to rub together."Earlier in March, BitMEX revealed that its own Ethereum Parity full note contained a "potential bug" and reported that the same node “sometimes reports that it is in sync, despite being several hundred thousand blocks behind the chain tip.” The authors claimed that this bug could be exploited by an attacker in some cases, but that is "highly unlikely to happen." In another analysis, BitMEX revealed that the 2018 crypto bear market accounted for 54% of the losses as well as $1.5 billion worth of transfers to external addresses and other factors that have brought projects' holdings down even further.
Bitwise To SEC: 95% Of Volume On Unregulated Exchanges Is Suspect
“Under the hood the exchanges that report the highest volumes are unrecognizable. The vast majority of this reported volume is fake and/or non-economic wash trading.”Bitwise sources its data from the widely known statistics tracker CoinMarketCap (CMC) which claims to include a large amount of this suspect data, “thereby giving a fundamentally mistaken impression” on the true size of the Bitcoin marketplace. The claims also cite that 95% of the reported volume is fake and that the real market for BTC is “significantly smaller, more orderly, and more regulated than commonly understood” - which roughly amounts to $273 million. After analyzing the regulated exchanges - using Coinbase Pro as a case study - Bitwise reveals the nature of the trading patterns that is trustworthy. The key characteristics include an “unequal and streaky” mix of red and green (sell and buy orders) whose distribution fluctuates considerably at any given time. The report also cites that the trading patterns on Coinbase Pro reveal “a greater-than-random number of round trade sizes,” which it characterizes as “more natural,” typically human behavior. Bitwise noted:
“It’s [the spread is] $0.01. At the time this screenshot was taken, bitcoin was trading at $3,419. That means bitcoin was trading at a 0.0003% spread, making it amongst the tightest quoted spread of any financial instrument in the world.”In the conclusion of Bitwise's report you can see that the overall findings “demonstrate that this ETF application [for its Bitwise Bitcoin ETF Trust] meets both” of the conditions requested by the SEC on how a Bitcoin ETF could satisfy the requirements of the Exchange Act.
Warning: Fake Wasabi Wallet Appears On The Market
Bitcoin Goes Below And Above $4,000 Again: What’s Causing This Fluctuation?
- Hourly MACD – The MACD is slowly moving in the bullish zone, with a positive bias.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher, but it is still well below the 50 level.
- Major Support Levels – $3,950 followed by $3,920.
- Major Resistance Levels – $4,000, $4,020 and $4,060
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- Money On Mobile Wallets: Western Union Teams Up With Cross Borders Network
- BitMEX CEO Arthur Hayes: Bitcoin Will Test $10,000 In 2019
- Bitwise To SEC: 95% Of Volume On Unregulated Exchanges Is Suspect
- Latin E-Commerce Giant Mercado Livre Bans Cryptocurrency Ads On Their Website
- Further Delay For Bakkt’s Plans Because Of Regulator Approval
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