Recently I’ve been hearing more and more about a service called Xcoins. The service describes itself as a “Bitcoin lending service” that allows you to get Bitcoins through the use of Paypal or a credit card.
Buying Bitcoins with Paypal through Xcoins
Until today it has been extremely hard to buy Bitcoins with Paypal due to the possibility of chargeback. However Xcoins claims to have found away around this. Instead of selling you Bitcoins they are loaning you Bitcoins (to an extent). Whether this is actually a loan or a sale is somewhat ambiguous and can be left for interpretation. Here’s how it works:
You (the buyer), come to the site and say you want to “loan” some Bitcoins. After a short ID verification process you will be requested to deposit the USD equivalent of how much you want to borrow + credit card / Paypal processing fees + a fixed amount that acts as the interest rate on the loan.
In fact, there is no ongoing interest on the loan since the amount is a one time…