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You agree to sell me some Bitcoin. I send you USD on PayPal and you send me Bitcoin. I later dispute the charge on PayPal. Your Bitcoin payment can't be similar
by freefal 8y ago
You agree to sell me some Bitcoin. I send you USD on PayPal and you send me Bitcoin. I later dispute the charge on PayPal. Your Bitcoin payment can't be similarly disputed. Now I have both my original USD and your Bitcoin. This happened all the time in the early days of Bitcoin.
The Bitcoin network worked as expected, but by most normal definitions of fraud, I've defrauded you.
- LyndsySimon 8y agoFraud occurred, but it was not a fraudulent Bitcoin transaction. There is a big difference - though, I understand that the difference is likely lost on the average person, and that the average person places more value on centralized authority in financial matters.