In 2002 Ebay completed their purchase, and full ownership, of PayPal. For the past 12 years, PayPal horror stories have ruled the web. But, with the integration of Ebay and PayPal, hundreds of millions of other transactions dwarf the horror stories.
So what does PayPal have to do with crypto currency? Everything! In a recent announcement, Ebay stated they are actively looking to spin off, or sell PayPal.: http://www.bloomberg.com/news/2014-08-21/ebay-rises-after-report-on-possible-paypal-spinoff.html Then within days, Ebay made the statement that they are interested in integrating Bitcoin: http://www.smithsonianmag.com/ist/?next=/smart-news/ebay-owned-mobile-currency-company-thinking-about-accepting-bitcoin-180952457/
If you think these two events are unrelated, you better look more closely. Ebay knows that PayPal can’t keep charging $3.20 on a $100 transfer and still be in business 10 years from now. It is kind of like the old cell phone plans from the 80’s where it was $1/minute and people would have $2000 phone bills. High prices invite competition and breed innovation.
Is PayPal a dead business model? Ask the owner of a VHS recorder.