I noticed this question was posted a long time ago and perhaps things have changed so I took the liberty to dig in again and also aggregate most of the answers given here and here’s what I found:
It’s indeed impossible to buy Bitcoins with Paypal DIRECTLY even today and it's mainly because of Paypal’s TOS (Section 3.7 here) and the issues of chargeback.
Bitcoin strongly enforces two concepts - high anonymity and no chargebacks.
Because of high anonymity, it is nearly impossible to be 100% certain who you are sending Bitcoins to. In the end, the Bitcoin address is just an arbitrary string of characters.
Because of no chargebacks, once you send someone Bitcoins, they are irreversibly theirs (assuming no ...
It's because bitcoin transactions are final, and exchange margins are low.
Businesses selling something for download can afford to be hit by fraud without incurring any real loss (other than potentially an opportunity cost, but even that is likely to be minimal as fraudsters would be unlikely to pay even if they couldn't defraud). ie margins are high.
Well, all transaction between Bitcoin addresses are stored forever, and so are fully traceable. What this means in your case is indeed that the credit card company can trace the coins you bought from them.
However, there are a few things to note.
Bitcoin addresses don't have a name assigned. F.e. Bitstamp will not know that the Bitcoins are coming from the ...
Bitcoins are liquid. Everybody wants bitcoins, and as many as they can get - if not for some immediate use, then to sell them for other currencies which are of immediate use. Even someone who doesn't need or believe in Bitcoin can still steal them. Thus a Bitcoin CC trader will attract all the fraudsters in the world. A site like RPGNow will attract only ...
Bitocin and Litecoin have the same problems when trying to buy them with funding methods that allow chargeback.This is mainly because of Paypal’s TOS (Section 3.7 here) and the fact that your can't chargeback Liteocin since it is considered as cash.
Having said that there are still a few ways you can buy Litecoin with Paypal or a credit card.
Use VirWox to ...
Every transaction ever made in Bitcoin is public. You can see the most recent here:
What makes it anonymous, is that you may not know who owns which account number (Bitcoin address). If Privateinternetaccess picks a new receiving address for every transaction, it's very difficult for an outside person to see who is ...
I have a couple of friendswho want to purchase bitcoin, I would buy the bitcoins for everyone, that is why I have all of their card and personal info. I wanted to use a single wallet (mine) and then transfer the funds to each of my friends preferred wallets
Can I personally be traced?
First off, service recommendations are off-topic on this site, for more ...
This problem is not solvable unless you want to place yourself at great personal risk. The trouble is that bitcoin transfers are inherently non-reversible, meaning that once you've transfered bitcoins there is absolutely nothing you can do to guarantee the return of those bitcoins. Credit cards however are highly reversible and most banks reserve the right ...
The best way to do it is in person, with cash. Most other methods are traceable. Provided you don't live in the middle of nowhere, it's pretty easy to find at least someone nearby who's willing to buy, and if you're serious about anonymity that extra travel distance is probably a minor issue.
If you live in the states the only service that comes close to this would be
https://www.xmlgold.eu/ - you can even order a pre-paid credit card that you are able to top up with bitcoins.
https://www.okpay.com/en/index.html - Okpay used to offer the same service but due to regulatory reasons they have ceased offering thier services to US citizens.
Yes, there is Smart Card Wallet project, though there seems to be no clear indication on what stage the project currently is.
There is also hardware wallet by Slush. It's not smart card based, but works pretty much the same way. Also still in development.
[Update: This exchange method is no longer available.]
a website with the url of http://www.iocoloradocentral.com/ has converted my paypal funds to bitcoins for quite a while now, i have always received the bitcoins :).
This type of product has been tossed around since at least May 2011 when MagicalTux was the new owner of Mt. Gox. They no longer discuss it.
BitInstant "leaked" such a Mastercard in Fall 2012. They claim it is "seeing progress" but there's nothing yet.
There are similar cards. Peter Schiff's Euro Pacific Bank offers a gold-backed debit card where gold ...
Bitcoin is perfectly transparent. Privacy relies on the steps you take to protect your identity.
Things you can do to make a tracing harder:
Use a VPN or multiple VPN.
Use Proxy or multiple Proxy.
Use Tor (Multiple Tor instances can lead to loops, better avoid that).
Take care to not use the same virtual identity twice or more.
I have used xapo. The card works great. There is a Bitcoin wallet app where you can store bitcoins. The debit card just spends what you have in your wallet.
Bitstamp which is an exchange for buying coins also provide debit cards. I haven't used the card but bitstamp is a well known reputable exchange.
A bitcoin ATM. When it asks if you have a wallet, answer negatively to get a paper wallet printed for you. Then load the paper wallet and walk away. After that transaction is confirmed, sweep the paper wallet funds into your own personal wallet. As someone else noted, this is not the cheapest way to do things, but it is safer than meeting someone with cash.
I agree with @nuggetbram, in person is the most practical way.
An alternative is buying from a BTC ATM, for cash. Those tend to charge very high fees, though, and would limit the amount you can buy per transaction (there should be no problem splitting to multiple transactions, though, as each is independently anonymous).
Due to strict anti money ...
There's a wiki page about buying Bitcoins with a credit card. It seems the ideal options for you would be Brawker or MeetPays. But whatever method you decide to use, don't forget that Bitcoin is not anonymous (by default), that's a common myth.
talk has been appearing lately of PayPal considering to accept Bitcoin. That would give you a somewhat direct interchange between the "two worlds" though at rather considerable cost (PayPal commissions, their outrageous bid/ask spreads, plus fixed base-fee)...
There is not a single available solution to go to a general VISA/MC/AMEX card in the US today. Money Transmitter laws (and a host of other regulations) make this a very difficult proposition at the moment.
Some other countries don't have the same issues today, like Canada http://paymentweek.com/2013-11-4-canada-introduces-bitcoin-debit-card-services-238461/ ...
Western union online money in minutes. The client pays western union with their credit card, the client send you the mtcn, you pick up the funds. Pretty Much Irreversible.
Have you looked in to Green Dot Money Pak?
While not technically for payment processing, it is possible to send these to a merchant and they are non-refundable. FYI they are tracked by ...
Taking a quick look here: https://en.bitcoin.it/wiki/Selling_bitcoins reveals that BTC-E is capable of doing PayPal withdrawals.
I'm not sure how closely it meets your requirements, and PayPal clearly requires you to provide personally identifiable information, but it could be helpful.
Bitcoin would be a poor choice for such a system because it doesn't really have a concept of account balances that are present in the blocks. You'll likely also need some central authority to decide who is part of "everyone". Otherwise, someone can create a million accounts and then pool all the money.
Also, Bitcoin is fundamentally secured against double ...