[cliffu]

They are crowdfunding a speculative application. That's already mailing envelopes of cash. Although the users read that they are funding development and not buying software, Paypal grabbed it all and said they're worried about fraud.

Bitcoin lets the user assert that they trust the recipient. Or they could trust a third party escrow recipient. There's no payment processor to restrict who a crowdfunder wishes to trust.

[the_mitsuhiko]

People that crowdfund often do not trust the project. PayPal probably flagged them because of cancellations.