CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$22,811.00
  • ethereum
    ETH$1,641.71
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » PayPal and Square Are Buying Every New Mined Bitcoin… And More

    PayPal and Square Are Buying Every New Mined Bitcoin… And More

    Author: Felix Mollen

    Last Updated Nov 23, 2020 @ 03:53

    According to Pantera Capital, PayPal and Square are driving the Bitcoin rally, buying every single mined Bitcoin and causing a shortage in the markets.

    When Bill Harris, former CEO of PayPal, described Bitcoin as “the greatest scam in history” in an article for Vox, the last thing that would come to his mind was the role his company would play in the global adoption of this cryptocurrency.

    This was in 2018, just when Bitcoin was on a major bearish trend. The bubble —as Harris described it— exploded. But things changed, a new CEO replaced Harris and Bitcoin’s price slowly recovered. Well, slowly until PayPal jumped on the Bitcoin Wagon.

    According to a report published by Pantera Capital, PayPal’s foray with Bitcoin has been crucial to its recent bullish rally.

    PayPal Makes Bitcoin Simple

    It all seems to come down to how PayPal adapts its philosophy to the crypto-verse, making crypto incredibly easy to adopt. According to Pantera Capital, the simplicity with which PayPal offers its crypto services has had a “huge impact” on the public perception of Bitcoin and on the adoption of other cryptocurrencies:

    “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. Three hundred million people just got instant access to Bitcoin, Ethereum, and other cryptocurrencies.
    BOOM! the results are already apparent.”

    PayPal’s user base also plays an essential role in favor. According to Pantera Capital, PayPal’s 300 million accounts are 3 to 1 higher than today’s number of Bitcoin addresses.

    ADVERTISEMENT

    This makes it easy for many people to jump into Bitcoin. In fact, Pantera Capital believes this interest of large fintechs in crypto is a new phenomenon on its own. That’s why companies like PayPal, Cashapp, and Robinhood are so important for this bull run that many consider to be more stable than that of 2017.

    Buy Them, Buy Them All!

    Another cause of the rally could be PayPal’s current voracious appetite for Bitcoin and other tokens.
    According to Pantera; PayPal and Cash App are buying so much Bitcoin that they could be causing a shortage in the market, directly contributing to pushing the prices up.

    PayPal Bitcoin Purchases
    Implied PayPal Bitcoin Purchases. Image: Pantera Capital

    Pantera Capital’s estimations are impressive, and if valid, there would be less and less Bitcoin available to trade as time goes by:

    When PayPal went live, volume started exploding. 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 and Cash App are already buying more than 100% of all newly-issued bitcoins.

    In a previous report, Pantera Capital estimated that Cash App was buying about 40% of all newly-issued bitcoins that miners put into circulation.

    Adding this 40% bought by CashApp to the 70% that PayPal is buying reveals that both companies are getting 110% of all new Bitcoins, generating a shortage of 10% of all newly mined coins.

    And although PayPal is already receiving criticism from prominent bitcoiners, it is still making them 62% richer thanks to the price movement.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • BitcoinEthereumSquarePayPal
      The Digital Age Is Here: Crypto And Fintech Companies Soar, While Bank Stocks Tank
    • paypal_crypto_bitcoin-min
      The Good and The Bad About Cryptocurrency on PayPal
    • quick_cover
      Last Time Bitcoin Broke $17K The Way To $20K ATH Was Quick
    Tags: Bitcoin Bitcoin (BTC) Price Bitcoin Adoption Bitcoin Bull Run Mining PayPal
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Felix Mollen
    More posts by this author

    Felix got into Bitcoin back in 2014, but his interest quickly expanded to everything blockchain-related. He's particularly excited about real-world applications of blockchain technology. Having worked as a professional content writer for three years before that, Felix transitioned to working on blockchain-centered projects and hasn't looked back ever since.

  • bitcoin
    BTC$22,811.00
  • ethereum
    ETH$1,641.71
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!