PayPal Purchased Approximately Seventy Percent of Newly Mined Coins
In the past month, PayPal has come under fire as the e-commerce giant purchased more than seventy percent of the total amount of available bitcoins. The results of the financial mogul’s actions have caused a skyrocketing demand for the coins and driven up Bitcoin’s price value substantially.
Just a few short weeks after PayPal began accepting and processing cryptocurrencies, it began buying as many newly mined coins as possible. PayPal isn’t the only digital business that has taken an opportunity to prey on blockchain technology’s potential advantages. Cash App, which is operated by Square, has also joined PayPal in hoarding virgin bitcoins.
PayPal’s newly launched crypto services run on Itbit, which is a fiat-to-crypto Paxos exchange. The platform’s trading volume started strong and soon exploded far beyond any predictions or expectations. PayPal has more than thirty million users currently active that now wield power to conduct transactions using Bitcoin technology.
For now, PayPal stands as the only provider of crypto services for users located in the United States. Bitcoin is scheduled to hit the mainstream on a global scale with integration plans already underway.
How PayPal Caused the Bullish Momentum of Bitcoin
It isn’t clear whether or not PayPal is responsible for driving Bitcoin’s current price value through the roof. Some analysts find themselves seething and frustrated by PayPal’s actions; other traders can’t stop themselves from celebrating jubilantly. Since Bitcoin hit a three year high on November 20th, it is easy to see the increasing incline in its value and market worth.
Traders now ride the waves caused by PayPal buying seventy percent of newly mined coins. The massive impact of PayPal’s recently launched crypto services has generated predictions that the company could potentially purchase virtually all available coins in weeks. Bitcoin’s current rally up the charts has proven to previous doubters that it is a sustainable system rich with potential growth.
Removing the Onerous Friction Related to Buying Bitcoin
Now that PayPal has removed the onerous friction related to buying, selling, and trading with Bitcoin, fewer limitations stand in the way of the cryptocurrency’s growth. Institutional buyers seem to play a primary role in Bitcoin’s price spikes as publicly traded companies began curating Bitcoin. The undeniable high corporation demand for Bitcoin has increased its value rapidly, which only made PayPal’s influences impact the market much more significant.
PayPal recently has begun slowly releasing their tight hold on the coins to circulate them back into the market. If Bitcoin’s shortage continues with demands ranking so high, the price will increase with no prevail. Cash App seems to follow the lead of PayPal in terms of gathering coins in bulk.
Preventing Unbalanced Supply Scarcities in the Blockchain Industry
By purchasing most of the newly mined coins, PayPal contributed to the unbalanced supply scarcities in the blockchain industry. The price of each unit also has increased to equilibrate the process of supply and demand.
With very little sign of changing courses, Cash App will contribute to the continual growth of coin prices. Cash App has successfully achieved record Bitcoin revenues of more than one billion within the last few months. Traders speculate about what the end of the year market data will bring to the table.