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Ahhh ok, thank you, I wasn't aware of that. Why isn't it the case with Paypal etc?
by muppetman 13y ago
Ahhh ok, thank you, I wasn't aware of that. Why isn't it the case with Paypal etc?
- RussianCow 13y agoPresumably because PayPal transactions are reversible; Bitcoin transactions are not.
- rtpg 13y agoIf you try to put money into Paypal you'll likely create some link with a verified source (credit card, bank account). So if some investigation were to happen Paypal at least has some hints as to your real identity. With coinbase people could put in their (mined) bitcoins, and then sell them. In that case Coinbase has effectively no way of figuring out who you are.
- stingraycharles 13y agoWhat happens with the money after you sell them? That has to go somewhere, and couldn't that create the "link" required?
- rtpg 13y agoYeah I thought of that, I think banks/money handling services have responsibilities before the actual pulling out though (probably like how pawn shops can't accept goods without ID).
- jonknee 13y agoPayPal is a reversible transaction where they know their customer (who you are paying), so they don't take risk when accepting your credit card. In BTC unless you have it already you need to become the customer of an exchange to first buy BTC and the laws there make it such that they need government ID. There are alternatives like mining it yourself (very hard) or meeting someone in person and paying cash (you'll pay a premium).