PayPal is widely known and very popular. It is still one of the widely used online payment systems available. It also has been around the longest, having started in 1998. As of the end of last quarter 2016, over 190 million accounts were active. The PayPal platform has been engaged in several transactions and has been accepted by most vendors. Of course, the competition between PayPal and other online payment systems continues to increase. There has been growing interest from other channels in the last few years, and with the introduction of Bitcoin, the competition between the two is growing widespread across the continents.
Bitcoin has had an impressive acceptance rate so far. The forecast is only growth, and there is no doubt that it will outrun PayPal to the finish line.
Bitcoin is Versatile
Bitcoin is universally compatible, and can be accessed in all over the world, provided there is an internet connection. However, with PayPal there are at least 50 or more countries that do not have support its online payment system. The ever growing internet access has not made a difference for PayPal to expand either. You would think otherwise, but that is not the case.
Bitcoin is universally accessible, provided that there is an internet connection. In fact, internet users grew from 16 million in December 1995, to 3.7 billion by the end of 2016. This net will only continue to widen in the years ahead. Moreover, bitcoin has an advantage over PayPal and other payment systems. Bitcoin exchanges keep bank discrimination far away. This allows the individual, irrespective of where he comes from, to create his own account and accessibility to money. Its versatility makes way for users in all over the world, to access any Bitcoin-friendly platform of their choice. This even applies to bitcoin casinos online that also offer additional security with their players. Such sites as Bitdice excel at keeping customers happy.
Another reason why Bitcoin is beating out PayPal is because it is cheaper to manage. PayPal still manages to charge its customers 2.9% plus $0.30, and 2.5% foreign exchange fees on each transaction. Meanwhile, most bitcoin systems charge a 1% fee for converting bitcoin into any local currency. Bitcoin, therefore, is cheaper and more convenient than PayPal. Bitcoin offers more money for fewer fees so obviously a higher turnout of users.
Online Gambling Prioritizing Bitcoin
90% of online investment programs usually known as Higher Yield Investment Programs (HYIPS), keep bitcoin as one of their payment options, over PayPal. HYIPS attracts investors from all walks of life, and they make bitcoin popular among their users. It was no mistake when the PayPal president admitted that there was explosiveness when using Bitcoin, that he felt threatened.
Unlike Paypal, Bitcoin is not just an account, but can also be mined on the internet, and so with zero Bitcoin account balance, one can change that status to numbers depending on how much time one devote in mining them. Moreover, there are other websites that allow users to buy bitcoin miners, to allow fast mining of bitcoin. This nature of bitcoin attracts people to try its usage and will attract more in the near future. The same thing cannot be said of PayPal.
Little Regulation Makes Bitcoin a Risk
Bitcoin is not controlled by anyone, and cannot be affected by the Central bank, which makes it free and easier to use. PayPal faces the opposite fate, as seen by the Central Bank of India in 2010. In fact, PayPal can be controlled, and with any directive from the Central Bank of any country, PayPal services will be halted. Bitcoin on the other hand. is a decentralized digital currency.
One other interesting advantage for Bitcoin is the user of any Bitcoin account actually owns it. The user possesses the components of bitcoin address which is the private and the public key, and one take possession of these unless he loses it himself. Very unlucky for Paypal Users, the right to freeze any PayPal account is reserved for the company, and upon misuse, the account can be frozen.
Lastly, Bitcoin charges low remittances as compared to Paypal and the other online Banking systems. Bitcoin charges users roughly less than 2% of their funds after transactions, lower than Paypal transactions. It is therefore, no wonder that Bill Gates went on record saying that “Bitcoin is better than fiat money.”