Home Coins Bitcoin (BTC) Paypal Bought 70% of All Newly Mined Bitcoin Last Month as Demand...

Paypal Bought 70% of All Newly Mined Bitcoin Last Month as Demand Rockets

- Advertisement -


Paypal bought up to 70% of all the newly mined bitcoin since the payments giant started offering cryptocurrency services four weeks ago.

Now that’s according to estimates by hedge fund manager Pantera Capital, as revealed in its latest monthly blockchain letter. Together with Square’s Cash App, the two companies are buying more than 100% of all newly issued virgin bitcoin (BTC), it says.

The letter said demand for Paypal’s crypto service, which runs on Paxos fiat-to-crypto exchange, Itbit, had hit the roof. The exchange “was doing a fairly constant amount of trading volume… [but] when Paypal went live, volume started exploding,” it observed, adding:

The increase in Itbit volume implies that within four weeks of going live, Paypal is already buying almost 70% of the new supply of bitcoins.

Paypal Bought 70% of All Newly Mined Bitcoin Last Month as Demand Rockets

Paypal announced in late October that its customers – running in excess of 300 million active users – will now be able to buy, hold and sell bitcoin and other digital assets using their Paypal accounts.

The decision also meant users could use their coins to buy things from the 26 million merchants that accept Paypal, it said. Paypal rolled out the crypto service to U.S. customers early this month, with the rest of the world set to be integrated later.

Bitcoin prices rose alongside the Paypal news, breaching $12,000 at the time the service was announced, and has maintained the bullish momentum ever since, hitting a three-year high of $18,997 on Nov. 20.

Pantera Capital noted that the Paypal crypto service is “already having a huge impact”. As shown in the graph above, it predicted that if the “growth persists, Paypal alone would be buying more than all of the newly-issued bitcoin within weeks.”

The letter also argues that bitcoin’s current rally is much more “sustainable” than 2017’s because of rising institutional demand from entities such as Paypal, Cash App, and Robinhood, which make buying bitcoin easy.

“Previously the friction to buy bitcoin was pretty onerous: take a selfie with your passport, wait days to a week to get activated, daily limits,” said the letter.

Data shows bitcoin’s current rally has in large part being driven by institutional buyers. According to the bitcointreasuries.org website, which curates bitcoin investments by publicly traded companies, about 21 firms, including Microstrategy Inc and Galaxy Digital Holdings, hold a combined $14.42 billion of BTC in reserve. That’s 832,351 BTC or over 4% of bitcoin’s circulating supply.

A number of these purchases have happened in the last few months, pushing the price of bitcoin higher. Pantera Capital says the shortage of bitcoin resulting from high corporate demand means that the likes of Cash App, which recently reported a record $1.6 billion bitcoin revenue, will have to pay more for each coin.

“When other, larger financial institutions follow their (Cash App) lead, the supply scarcity will become even more imbalanced. The only way supply and demand equilibrates is at a higher price,” it explained.

What do you think and Paypal scooping 70% of newly minted bitcoin? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Chart by Pantera Capital,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,553FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.20
GBP
1.33
CHF
1.11
NOK
0.11
JPY
0.01
CAD
0.77
AUD
0.74

Most Popular

After Ripple exec declares Bitcoin maximalism ‘over,’ XRP price surges

In a podcast for Lend Academy recorded Nov. 5, RippleNet general manager Asheesh Birla called Bitcoin (BTC) a “pretty innovative alternative to gold,”...

Pizza Hut to accept Bitcoin for pies in Venezuela

A famous U.S.-based pizza chain has begun accepting cryptocurrency payments in all its stores in Venezuela.According to a Nov. 27 tweet from crypto services...
bitcoin
Bitcoin (BTC) $ 18,245.61
ethereum
Ethereum (ETH) $ 566.14
ripple
XRP (XRP) $ 0.608738
tether
Tether (USDT) $ 0.999199
bitcoin-cash
Bitcoin Cash (BCH) $ 283.93
bitcoin-cash-sv
Bitcoin SV (BSV) $ 167.88
litecoin
Litecoin (LTC) $ 79.77
eos
EOS (EOS) $ 3.02
binancecoin
Binance Coin (BNB) $ 30.27
okb
OKB (OKB) $ 5.33
tezos
Tezos (XTZ) $ 2.35
leo-token
LEO Token (LEO) $ 1.35
cardano
Cardano (ADA) $ 0.164451
monero
Monero (XMR) $ 123.01
stellar
Stellar (XLM) $ 0.196005
chainlink
Chainlink (LINK) $ 13.24
huobi-token
Huobi Token (HT) $ 4.07
tron
TRON (TRX) $ 0.030546
usd-coin
USD Coin (USDC) $ 0.998149
dash
Dash (DASH) $ 107.10
neo
NEO (NEO) $ 17.65
iota
IOTA (MIOTA) $ 0.341482
nem
NEM (XEM) $ 0.175851
zcash
Zcash (ZEC) $ 74.53
maker
Maker (MKR) $ 543.13
paxos-standard
Paxos Standard (PAX) $ 0.999350
ethereum-classic
Ethereum Classic (ETC) $ 6.37
vechain
VeChain (VET) $ 0.015140
true-usd
TrueUSD (TUSD) $ 0.997462
ftx-token
FTX Token (FTT) $ 4.27
kucoin-shares
KuCoin Shares (KCS) $ 0.799068
waves
Waves (WAVES) $ 6.97