Let’s look at a few reasons why Bitcoin is different (and in our opinion -better) than PayPal.
- Borderless transactions – Bitcoin offers what PayPal only pretends to offer which is worldwide transactions. Considering you require a bank account to have a verified account with PayPal, this automatically eliminates up to 2.5 billion people worldwide who have no access to a bank account. Yet with Bitcoin all you require is a mobile phone and some Bitcoin or fractions thereof.
- Decentralization – Bitcoin offers true decentralized transactions. These transactions are all recorded on a digital trustless blockchain ledger. The transactions can not be reversed and do not have a central authority checking every transaction taking away your freedom and privacy.
- Security – Due to point no.2 the decentralised nature of the Bitcoin blockchain means that attacking a single point in a vulnerable network would be of no use. To attack such a network would require more computing power than the entire network itself which seems ever increasingly unlikely. Not to mention implausible due to the fact that if one had this amount of computing power they could mine Bitcoin legitimately and in a significantly more profitable manner. Paypal is centralised.
- Central Point of Authority – Many users of PayPal have had their PayPal transactions stopped due to any number of reasons including Bank issues which means that user lacks fast effective liquidity or freedom to transact with his or her hard earned.
- Privacy – Bitcoin can be transacted privately. The public key of the transaction is displayed to prove the transaction happened on the blockchain ledger but the information of the individual making that transaction is completely private. This is amazing for people in countries where the government wants to know where every cent came from.
- No Middle Person – Bitcoin cuts out fees by using the blockchain to cut out the middle person and allow the user to transact between one another directly. This cut’s out credit/debit card fees, government fees and PayPal fees.
- Trust – Bitcoin is a trustless transactional ledger. Because Bitcoin’s blockchain transactions cannot be altered due to its decentralized nature. Bitcoin is truly a trustless transaction. Unlike PayPal where in some cases people can be duped out of their product by customers using loopholes in their guidelines to demand a refund even after they have received the product from the seller. A Bitcoin transaction however is final. If a refund was ever to take place it would have to be in the form of a new transaction.
- Offline Transactions using the cellphone network – In countries where people can not afford internet or their internet infrastructure is lacking Bitcoin can be sent from the most basic of cellphone’s via SMS or E-mail.
So in conclusion, Bitcoin is borderless, decentralized, vastly more secure, has more freedom, immeasurably more privacy, little to no middle person, it’s trustless and can be used offline. These are just some of the reasons Bitcoin is better than PayPal. I am sure if you dig deeper there are a lot more!