Bitcoin Question

cspa
Contributor
Contributor

On Feb 9th at 4:50 pm, I purchased $500 in Bitcoin via PayPal. Very pleased with the move but PayPal charged me @$47,522.20, when the price was actually @$46,720.95, according to PayPal's own graph, and @$46,523.30, according to Google.  What gives?

 

PayPal valuation.png

 

 

Here is the rate I was charged (@$47,522.20)

 

PayPal rate charged.png

 

 

 

 

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2 REPLIES 2

sidemouse
Contributor
Contributor

The simple answer:

It always costs more to buy than it does to sell.

 

The longer version:

The value of a currency, commodity or stock is always higher to buy than to sell.

The price given by Google (and other trackers) is usually an average estimate or a recently traded price.

Google makes use of the Coinbase API, which gives an estimated price in US dollar, excluding fees.

If for example the google says the value is $1000 it will probably cost you $1020 to buy and you will likely only receive $980 to sell.

 

Just an example, but for the sake of this discussion assume the price of BTC never changes ...
And then if all you ever do is buy and sell you would eventually end up with $0.

 

It is helpful to remember these things, you will not get rich quick but I will tell you this...

My original $65 I bought in 2017 is now worth $450

Therefore it is possible your $500 will be worth $3,000-$4,000 in 2-3 years?

Of course we don't know, if I could predict the future I would be extremely rich, and I'm not hardly rich at all.

 

 

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cspa
Contributor
Contributor

Thank you for your response - but this is a spread of almost $1,000....  And I also bought Litecoin and the difference between the PayPal graph and what I was charged was less than a dollar....so seems very off.

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