Joseph Young on PayPal and Bitcoin →

December 2, 2018

Joseph Young:

PayPal says its bank account withdrawal fee is $1, which is true. BUT, the conversion rate is where they get you. I received $1,000 this week from a friend. PayPal shows $955 as withdrawable amount. $45 fee for a $1,000 payment, while Bitcoin processes $194 million with $0.1

I really don’t understand why people think this is a good argument in favor of Bitcoin. In most cases, when A transfers $1,000 to B, it’s because B wants to be receive USD because fiat is stable and predictable. In Joseph’s example, I like to think of the $45 fee as a stability fee that cannot be beat by Bitcoin at the moment when considering the fact that most people don’t give a s*** about receiving BTC — most people want fiat.

$45 for a $1,000 transfer is a 4.5% fee. What are the chances of timing a Bitcoin transfer and trade to ensure a loss of less than 4.5%? In its current state, Bitcoin just doesn’t beat services like PayPal and Venmo for day-to-day payments. That won’t change until Bitcoin’s market cap is in the trillions.

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Ohio will accept Bitcoin for tax bills →

November 26, 2018

The Wall Street Journal:

Beginning this week, Ohio businesses will be able to go to the website and register to pay everything from cigarette sales taxes to employee withholding taxes with bitcoin. Eventually, the initiative will expand to individual filers.

I have mixed feelings about this.

  • PR-wise, this move by Ohio’s state government does add a layer of legitimacy to Bitcoin, and the importance of this can’t be understated. On the other hand, payments made in Bitcoin will be sent to BitPay to be converted to USD — the only legal tender in the United States.
  • Utility-wise, I don’t think this development brings anything new to the table. However, I suppose it does make the whole process easier for people who want to pay taxes with Bitcoin.
  • This system is the perfect tool to link Bitcoin addresses to physical identities. Big Brother, are you there?

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BitPay’s Sonny Singh predicts a $15,000 BTC in 2019 →

November 24, 2018


The Chief Commercial Officer (COO) of global crypto payment processor BitPay has ventured that Bitcoin (BTC) will hit $15,000 to $20,000 by the end of 2019. The COO, Sonny Singh, made his forecast during an interview with Bloomberg Nov. 22.

Good timing. Really good timing to release a statement like this to shill hopium-filled emotionally-REKT people into becoming a liquidity source to continue the dump. Oops, let me take my conspiracy hat off.

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Pomp discusses Bitcoin on CNN →

November 24, 2018

Anthony Pompliano on CNN:

We have very deep conviction on a long-term basis. And if you look at the fundamentals, the 24-hour transaction volume on the Bitcoin network is about $4.6 billion as of lately, and the market cap is $74 billion. So that’s about a 16-times multiple of transaction volume for market cap. That’s very similar to Mastercard which does about $11 billion worth of transactions and is valued at about $180 billion. So from a value perspective, it’s right there on par with Mastercard.

I’m generally bullish on Bitcoin, but I just don’t understand the “fundamentals” behind this market cap multiplier comparison between Bitcoin and MasterCard. Bitcoin’s market cap is calculated by multiplying its circulating supply by its last traded price on off-chain exchanges — a completely speculative figure that can be easily distorted or manipulated. MasterCard’s market cap is based on real revenue statistics. After tweeting at Pomp asking about this comparison, he responded saying “they are both transaction networks.” To me, this seems like a nonanswer, but then again, I’m not a Bitcoin maximalist.

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