• bitcoin
    BTC$18,987.80-0.52%
  • PayPal Buying Up Most Of The Newly Minted Bitcoins

    Share:

    Share on facebook
    Share on twitter
    Share on linkedin
    Share on pinterest
    Share on reddit
    Share on telegram
    Share on tumblr
    Share on vk
    Share on whatsapp
    Share on email
    Share on digg
    Share on mix
    Paypal buying nearly all newly minted bitcoins

    PayPal Buying Up Most Of The Newly Minted Bitcoins

    PayPal has bought 70% of the newly minted bitcoins since it started offering Bitcoin (BTC) buying, selling and spending services in October 2020.

    Added with Square’s Cash App, both fintech firms are buying up more than all the newly minted bitcoins.

    PayPal’s Bitcoin service runs on crypto exchange itBit, and according to Pantera Capital the exchange’s volume has ‘exploded’ since PayPal started offering BTC to its users, and as a result is having to purchase nearly all of the newly minted bitcoins.

    ‘[itBit] was doing a fairly constant amount of trading volume … 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 buying nearly all newly minted bitcoins

    PayPal Making It Easier For Users To Buy Bitcoin

    Paypal announced in October that its customers would be able to buy, sell and hold Bitcoin within its payment network. And since the announcement, the Bitcoin price has risen 43% from $11,828 to $18,575.

    PayPal also allows its users to spend Bitcoin, and a few other altcoins, at the payment giant’s 26 million merchants. The service launched in the US at first, but is expected to roll out globally in 2021.

    The early success of PayPal’s Bitcoin service hurried the fintech firm into doubling the weekly buy limit from $10,000 to $20,000. And if the interest from PayPal’s users continues, the payment giant will have to buy more than the newly minted bitcoins.

    There are currently 900 bitcoins minted a day, and the ease at which users can buy Bitcoin on PayPal is driving many new investors into the space, according to the Pantera Capital report.

    PayPal makes it easier for users to buy Bitcoin

    ‘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 report.

    And while it is much easier to buy Bitcoin with cash on the likes of Kraken and Binance compared with 2017, PayPal’s accessibility makes it much easier.

    Institutional Demand Is Driving The Bitcoin Price Up

    Bitcoin’s rise since PayPal announced its foray into the Bitcoin space has been phenomenal, but it isn’t only the last month the Bitcoin price has been rising.

    Since the Bitcoin halving in May 2020, the Bitcoin price has more than doubled. The halving meant the supply of newly minted bitcoins dropped from 1800 to 900 a day.

    And this supply shock, although known about, is partly what’s driving the price up. Since then, institutional interest has gone through the roof, and the demand for Bitcoin is now far exceeding supply.

    Buy bitcoin in usa with Kraken

    We know about PayPal’s recent launch, and there are several other significant corporate buyers, that we know of.

    Software firm, MicroStrategy made the biggest leap into Bitcoin when it spent $425 million of its liquid treasury buying 38,250 bitcoins. MicroStrategy’s stock price has risen over 50% since the announcement in August.

    Square Inc. announced in September it had invested $50 million, making Bitcoin part of its treasury. And as stated earlier, Square’s Cash App has also been buying BTC to cover demand.

    Cash App recently reported a record $1.6 billion Bitcoin revenue, and you can be sure its success along with MicroStrategy’s is catching the eye of all corporate boardrooms around the world.

    Pantera Capital says other institutions will follow the likes of Cash App and Microstrategy into the Bitcoin space, and that demand for Bitcoin will lead higher highs.

    Square Inc Cash App is buying more Bitcoin

    ‘When other, larger financial institutions follow Cash App’s lead, the supply scarcity will become even more imbalanced,’ said the report. ‘The only way supply and demand equilibrates is at a higher price.’

    PayPal, Cash App… It’s Just The Beginning

    PayPal has followed Square’s Cash App into the Bitcoin space to offer payments using the leading cryptocurrency.

    After the Bitcoin halving cut the new supply by 50%, the demand for Bitcoin was expected to push the price higher, and it’s all playing out as expected.

    The success of Cash App, PayPal and the other corporations that have made Bitcoin part of their treasuries has pushed Bitcoin to the top of the agenda in pretty much every boardroom across the globe.

    The Bitcoin price is the beneficiary of all this corporate interest, and it’s only just starting. Bitcoiners are now going to eagerly await every Quarterly finance report from here on in, as more corporations announce their expected move into the Bitcoin space.

    And then we move onto sovereign states.

    Author: Tommy Limpitlaw


    Bitcoin FAQs


    Can I start Bitcoin with no money?

    Absolutely! Bitcoin is like other investments and currencies. If you have some money to invest, you can make more faster by buying Bitcoin. You can lose more faster, as well if you don’t know what you’re doing. But if you don’t have any money to invest you can earn free bitcoins from playing games, learning about cryptocurrencies, or offering your skills for Bitcoin.


    Can you buy less than 1 Bitcoin?

    Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.


    Where can I buy Bitcoin in the USA?

    There are many reputable Bitcoin exchanges operating in the US. However, the most recommended exchanges are Kraken or BlockFi. Or you can buy Bitcoin from Bitcoin marketplaces, such as LocalBitcoins or Paxful. All of these exchanges and marketplaces are global with high liquidity and excellent customer service. Check out our reviews on each platform.


    Can you get rich with Bitcoin?

    You can get rich from Bitcoin, but most people haven’t. Anybody who expects to get rich, especially from a little investment, will likely be disappointed. Bitcoin isn’t a get rich quick scheme, and should be seen as a risky and volatile asset that could bring gains for anybody who can stomach volatility. If you’re interested in and want to buy Bitcoin, you should really have a long term plan.

    Share:

    Share on facebook
    Share on twitter
    Share on linkedin
    Share on pinterest
    Share on reddit
    Share on telegram
    Share on tumblr
    Share on vk
    Share on whatsapp
    Share on email
    Share on digg
    Share on mix
    Bitcoin(BTC)
    $18,987.80(24H Vol)
    $32,316,942,812.00
    7D Chart

    How To Buy Bitcoin