On 5th March, it’s been reported that a patent has been filed by PayPal in order to speed up cryptocurrency transactions by eradicating the confirmation period of payments. However, it’s been claimed by many Bitcoin experts that this is already possible through the current technologies in the cryptocurrency industry.
Basically, the main purpose of PayPal patent is to improve the whole procedure of settling cryptocurrency payments between both buyers and traders on retail or e-commerce platforms. To avert each transaction from being broadcasted to the public Blockchain, users’ secondary wallets will let the unique private keys of both buyers and sellers to be transferred privately.
The PayPal patent read;
“In order to be sure that the Bitcoin transaction will ultimately result in a transfer of Bitcoins to the payee, the payee must wait until the mining process confirms the transaction before transferring goods and/or services to the payer. In many transaction situations, a 10-minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency. Issues like this have slowed the adoption of virtual currencies despite their advantages.”
What’s Peter Todd’s Response?
According to a Bitcoin developer, Peter Todd, PayPal is attempting to patent a technology that is already present in the cryptocurrency industry. In 2016, Opendime was created by a former Bitcoin marketplace “Coinkite”, and is a hardware Bitcoin wallet with multi-signature bank-grade security. It lets users transfer Bitcoin with inner private keys, allowing them to utilize Bitcoin like fiat money, such as the US dollar. However, compared to Ledger and Trezor, Opendime structurally differs from other hardware wallets as it cannot be reused. Opendime is basically a USB stick as it can only be used once and has to be destroyed to use the funds that are stored inside, which allows it to be used as cash.
PayPal’s technology encourages its users to transfer the whole wallet or private key linked with a predefined amount of a cryptocurrency and the procedure of transferring bitcoin payments through Opendime, which is just like PayPal.
The patent explains:
“The systems and methods of the present disclosure practically eliminate the amount of time the payee must wait to be sure they will receive a virtual currency payment in a virtual currency transaction by transferring to the payee private keys that are included in virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.”
Is It Really Possible for PayPal’s Technology to Improve Cryptocurrency Payments?
PayPal’s technology could let the cryptocurrency payments to be processed between both buyers and traders quickly by eradicating hefty transaction fees only if it’s executed at large commercial scale.
Yeogieottae, which is a major hotel booking platform in South Korea has recently partnered with the country’s largest cryptocurrency exchange, Bithumb, to allow cryptocurrency payments. Even in Japan, the biggest sellers have started to accept Bitcoin payments for a while.
However, on the other hand, a problem could occur while transferring private keys if the settlement occurs in a centralized manner. PayPal patent clearly explained that for carrying out the process of settling payment, it could depend on a payment service provider device as it could lead to a centralized system, managing the transfer of private keys.
Owen Williams revealed the findings of GDPR last week, which disclosed that PayPal shared complex financial information of its consumers with over 600 entities. The centralization of cryptocurrency payments and private keys could direct to susceptibilities and data selling if this technology by PayPal’s can exploit non-custodial wallets and allow both users and traders to endure in full control of their private keys during the whole process.
Bitcoin is a decentralized, peer to peer cryptocurrency which is used to make anonymous transactions without leaving behind any traces. Bitcoin is the first cryptocurrency to gain this much public attention and is being largely accepted by merchants as a form of payment all around the world.
In terms of usage, Bitcoin investment is no different from traditional currency. The users can buy, sell items through online as well as trade goods/services in physical stores. However, not everything is same. There are several factors that differentiate Bitcoin from traditional currency.
Let’s take a look at some of the major ways in which Bitcoin is different from paper money.
How Is Bitcoin Different from Traditional Money?
- Unlike fiat money, bitcoin is decentralized. There is no clearing house or authority (Government, Visa Network, MasterCard, Central Bank, etc.) to regulate the flow of cryptocurrency.
- Bitcoin network is peer to peer and is managed by users/miners around the world.
- The transaction fees are much lower because the money is transferred without going through a clearing house.
- The coins are earned by a process called Bitcoin mining. The miners around the world assemble blocks and are given mathematical problems to solve using Bitcoin algorithms. Those who are able to solve them correctly are rewarded with bitcoins.
- All Bitcoin transactions are stored in a public ledger called “Blockchain”. Anyone can visit this ledger to verify a transaction. This openness makes the cryptocurrency more transparent and reduces the possibility of any kind of fraudulent activity and double spending of the same coin. (Find out more on what is Blockchain and how does it work here)
- The currency can be obtained via Bitcoin exchanges or mining.
- For now, just handful of merchants on the web and in physical stores accept Bitcoin as a method of payment. However, the trend is increasing each day.
- A downside of bitcoins is that they are not insured by the government agencies which ultimately makes them irrecoverable if lost. If an owner somehow loses a hard drive or any other device in which the currency was stored, the coins are gone for good.
These are some of the facts about bitcoins that make them different from traditional currency. Now let’s go and look for the answer of” “is Bitcoin a good investment?”
Is Bitcoin A Good Investment:
Although bitcoins are gaining more acceptance and increasing in popularity each day, investing in Bitcoin is never considered a good idea. This because the currency is highly volatile and unpredictable.
For example, the Bitcoin price skyrocketed from $14 to $1200 and then dropped to $632 per BTC within a year. Such high instability in value makes Bitcoin a risky investment.
The best way to invest in bitcoins is to buying bitcoin with Paypal when they are being sold for less than $10 per BTC as this will give investors a larger margin of safety.
Tags: bitcoin investment sites, trusted bitcoin investment sites
A number of websites already accept bitcoin as a payment option. So, you are lucky you have them. Now, get ready to shop and spend the bitcoins. If you are confused how to start and where to start. In this article, you’ll read about the websites that are accepting bitcoins.
In January 2014, overstock was the first retailer which start accepting bitcoin as the payment option. Overstock partnering up with coinbase, which is the worldwide Bitcoin exchange. The company allows its customers to shop and make payments in bitcoins.
First, if you don’t own any bitcoins, you need to get them from an exchange or friend. Second, you are free to shop at overstock.com by using bitcoins. As the first and foremost retailer, Overstock expand its criteria of accepting bitcoin as the payment option. Third, click the “pay with bitcoin” on the checkout page.
Expedia is worldwide online travel booking agencies. Which is accepting bitcoin as a hotel booking payments since June 2014. Same as overstock.com, Expedia associate with coinbase and start booking payments in bitcoin. Moreover, flights, activities and other payments may in the bitcoin.
Foodler provides online food services and gets payments in bitcoin. While it was the early adopter of the bitcoin since 2013.
The customer has the option to order food and make payments around 20,000+ Foodler restaurant partners. These restaurants aren’t accepting bitcoin directly. Whereas, Foodler convert bitcoin into USD to pay the restaurant.
Electronic retailer giant started accepting bitcoin since 2014. In addition, BitPay is the Newegg’s processing partners for digital currencies. There are few purchases which do not accept the bitcoin as a payment.
- Gift cards
- Marketplace subscription
- Subscription order
- Premier membership
- Return shipping labels
- Will call order
First, you have to select the desired shipping option. Second, follow the payment procedure. Third, review the terms and conditions of the Newegg. Forth, Payment procedure of bitcoin includes;
- If software wallet is on computer, click the button “pay with bitcoin”
- If it is on smart phone, kindly scan QR code
- On the web, you need to click “view address” and link to wallet address
Make an order and send the respected amount. Fifth, after fund transfer, paid invoice will be shown to the customer. And confirmed email will be sent.
Customers have the option to shop up to 200,000 with bitcoin payments. It is teamed up with coinbase same as Expedia since 2014.
An online eCommerce platform allows the customers to join and set up their own business just like Etsy or eBay. All 75,000+ merchants accepting bitcoin with the help of BitPay since 2013.
One of the largest company accepts Bitcoin payment since 2014. A satellite and internet provider network teamed up with coinbase.
There’ve been many Ethereum Price Predictions before; however, according to the co-creator of Ethereum, Steven Nerayoff, the growing interest in cryptocurrency will increase the value of Ethereum and the cryptocurrency can triple this year.
Steven Nerayoff said:
“You’re seeing a tremendous amount of growth across a wide variety of industries. Fintech is actually the natural area, but now you’re seeing it becoming increasingly more creative — you find projects in the oil and gas industry, you’re finding government using it in their applications, you’re seeing it in gaming, all kinds of different areas.”
Ethereum Price Prediction
In the past few days, Ethereum has moved up to new heights consistently and is emerging as a major cryptocurrency. Likewise, as compared to 2017, it has increased by almost 3600% and that’s why the majority of the investors are considering Ethereum as a long-term investment.
At this same time, an important question arises related to the future price of Ethereum. Ethereum is quite different from tokens that are only for investment, which means that the Ethereum’s value would upsurge in the upcoming time. It’s expected that by the end of 2019, Ethereum’s value would be almost $ 14,000. Likewise, it is expected that Ethereum would hit $31,000 by the end of the year 2020.
When it comes to Ethereum, keep one thing in mind that if more platforms are used, the price of the token will also get higher. Following this reason, you can ensure that the value of Ethereum would also upsurge in the future. According to the market cap, it’s also expected that Ethereum is going to become the second most valuable cryptocurrency. So, whenever you want to invest in a cryptocurrency, the perfect idea would be to go for Ethereum.
Views of Balaji Srinivasan
Majority of the people who are hopeful about cryptocurrency apparently agree that the leading cryptocurrency Bitcoin and its newer competitive Ethereum are here to stay. According to the CEO of Earn.com, Balaji Srinivasan:
“In terms of 5 to 10 years, Bitcoin and Ether will be around I bet.”
According to the CEO and co-founder of Blockchain, Peter Smith, his company, was primary to Bitcoin, as it only started to warm up to newcomer Ethereum.
Views of Kathleen Breitman
There’s no doubt that Bitcoin and Ethereum have stolen the show at this time, but the innovation will not end there. Kathleen Breitman, who is the co-founder of Tezos is optimistic that her own blockchain bet is going to fill a place that solves problems with existing blockchains. Particularly, she is designing Tezos to automatically push the updates of software out to the network, which means evading the disruptive feuding over upgrades that afflicted systems like Bitcoin for the past few years.
For the moment, token sales appear to be a great way of raising a hefty amount of money real-quick. Peter Smith believes that the manipulation of market and insider dealing is extensive amid purveyors of ICOs.
“We’re cautious about it in the short term – But you have to temper that with the idea that every new technology is going to be like that in the beginning.”
CEO of Ripple, Brad Garlinghouse also said:
“Heavily regulated markets are typically heavily regulated for a reason – Frauds are happening, people are going to jail.”
Elena Kvochko is a chief information officer of the security division at Barclays. According to Kvochko, her bank had a talk with watchdogs about blockchains, Bitcoin, and their ilk. In the meantime, as the governments settle down on sets of instructions of the road, countries like Singapore, Estonia and Switzerland are shoving to advance frameworks that simply accommodate the innovative technology. According to Smith, they’re looking for displacing geographic officials and becoming hubs for developing business financing.
“If you’re a U.S. person or business, you have a good deal to be concerned about.”
The prices of cryptocurrency fluctuate way too much, but there’s still a reason to believe that the markets are going to become more stable. On the other hand, Srinivasan introduced another possible scenario. Referring to a fundamental-reality in which everybody is disheveled in the future, Srinivasan said :
“All your waking hours are spent in the Matrix.”