Potatoes skin will go bad quicker under cold temperature from your refrigerator. Potatoes taste sweeter, drier and maybe a bit sandy if stored for too long in the refrigerator, this occurs due to cold resulting in potato starch being converted to sugar faster than when stored outside the fridge. The best place to store potatoes are lower temperature regions e.g. pantry or even a basement. Paper bag gives potatoes proper aeration making them taste fresh for longer.