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You can show up at a bank and demand your balance in central bank money aka cash. The equivalent for Bitcoin would be that Paypal has to send your balance to y
by ArtTimeInvestor 6y ago
You can show up at a bank and demand your balance in central bank money aka cash.
The equivalent for Bitcoin would be that Paypal has to send your balance to you on the blockchain. But they do not do that. They will pay you in dollars. How much dollars? However much they like.
- globular-toast 6y ago> You can show up at a bank and demand your balance in central bank money aka cash. Of course you can. Whether you get it or not is another matter. Have you ever tried it? Do you know anyone who has tried it? Sure, for trivial amounts you can do it. But do you think you can just waltz into your bank and walk out with $50,000 in cash? Good luck.
- mianos 6y agoI did this often. Then I would buy a can of spam. :)
- ascar 6y ago> You can show up at a bank and demand your balance in central bank money aka cash. If everyone would try to do that the system would collapse. The system is built upon the assumption that the vast majority of people don't do that.
- globular-toast 6y agoWhen people do do that, it's called a bank run: https://en.wikipedia.org/wiki/Bank_run https://en.wikipedia.org/wiki/Bank_run This happened to Northern Rock in the UK in 2007. The bank failed and was nationalised as a result.
- Drakim 6y agoI'm confused, if I buy bitcoin from Paypal, and I want to use that bitcoin to pay for say, Pizza, would Paypal not allow me to do that?
- warkdarrior 6y agoWe'll see whether consumers like their offering. [checking...] It looks like they are doing alright: https://www.coindesk.com/paypal-2020-results-outstanding-finish-to-a-record-year https://www.coindesk.com/paypal-2020-results-outstanding-fin...
- xirbeosbwo1234 6y agoYes, the cryptocurrency markets are famously rational.