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Anything that increases bitcoin liquidity is good for bitcoin. Anything that increases PayPal's market opportunity is good for PayPal.

A lot of people want to purchase bitcoins with their PayPal accounts, and since PayPal is already licensed as a MSB, this just requires technology. They can build or buy (Coinbase), and make a pretty significant revenue on conversion fees. They could also charge a small fee for bitcoin transactions over a certain amount, in exchange for convenience, or, for example, transaction insurance, which can be underwritten, eliminating the risk.

PayPal can do a lot for Bitcoin, and vice versa. If Bitcoin continues to be successful, PayPal can continue to have a significant portion of the online transaction pie.



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