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0 pointsUncleMeat5y ago0 comments

But you need dollars on the other side. For this to work without PayPal hosting the BTC you need the following:

1. You send BTC to PayPal 2. PayPal sends equivalent dollars to the merchant.

But what is "equivalent"? What is the price of BTC at any given moment? It fluctuates a lot and you can't "lock-in" a price without waiting minutes (as opposed to milliseconds in other financial systems). So between the time that you sent dollars to the merchant and when you sold the coins you are exposed to risk of holding BTC.

Lightning does not help with this.

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xur175y ago

That's a fair point. In order to use lightning, PayPal would either need to hold some BTC in reserves on layer 2, or work with an exchange that accepts lightning transactions.

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