Square and PayPal boost the Bitcoin rally by buying every single mined BTC and therefore causing a shortage in the markets so let’s read more in today’s Bitcoin news.
Former CEO of PayPal Bill Harris described BTC as the “Greatest scam in history” in a Vox article once, but the last thing that will come to mind was the role that the company will play in the worldwide crypto adoption. This article was released back in 2018 when Bitcoin was in a bearish trend. The Bubble according to Harris, exploded. However, things changed. A new CEO replaced Harris and Bitcoin recovered slowly. Shortly after that, PayPal jumped on the BTC wagon.
Now, According to a report by Pantera Capital, Square and PayPal are boosting the BTC adoption rate and their involvement was crucial to the recent bullish rally. It now all seems to come down to how the company will adopt the philosophy to the crypto space and make crypto incredibly easy to adopt. According to Pantera Capital, the simplicity which PayPal offers the crypto services had a huge impact on the public perception of BTC and the adoption rate of other crypto assets:
“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 plays an essential role in favor so according to Pantera Capital, PayPal has 300 million accounts which are 3 to 1 times higher than today’s number of BTC addresses. This makes it extremely easy for people to jump into BTC. Pantera Capital believes that the interest of large fintech companies is now becoming a new phenomenon which is why companies like PayPal and Robinhood are so important for the bull run which many consider being more stable than it was in 2017.
Another cause of the rally could be PayPal’s appetite for BTC and other tokens so according to Pantera, Cash App and PayPal are buying so much Bitcoin that they will be causing a shortage in the market which are pushing the prices up even more. Pantera’s estimations are quite impressive and if they are valid, it would be less and less BTC available to trade as time goes by.
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