Report: PayPal users bought nearly 70% of new bitcoins, leading to a shortage of bitcoins and soaring prices

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Report: PayPal users bought nearly 70% of new bitcoins, leading to a shortage of bitcoins and soaring prices

Pantera Capital, a cryptocurrency investment company, stated in a newly released report that the shortage of bitcoin is the main reason for the recent price surge, and most of the newly minted bitcoins have been dug by PayPal.

PayPal’s new encryption service “has already had a huge impact.” Pantera quoted itBit data as saying: “When PayPal launched the new encryption service, transaction volume began to explode. Within four weeks of launch, PayPal has purchased nearly 70% of new bitcoin.”

The data shows that almost all newly minted bitcoins flow to PayPal and Cash App.

With mass adoption, this will lead to higher purchasing power and supply shortages. Pantera claims that the latter caused the price of Bitcoin to soar.

According to “Betwee” report, earlier this month, PayPal launched an encrypted transaction service in the United States, allowing customers to trade up to $20,000 per week. The platform will be launched globally in early 2021.

This online payment merchant has 300 million active users, which makes its entry into the digital currency field a major stepping stone for the adoption of digital currency.

Pantera stated that buying Bitcoin is much easier now than it was during the 2017 bull market.

In addition to PayPal, retail platforms for bitcoin and other digital currencies now include Cash App and Robinhood.

Widespread adoption means that digital currencies are more likely to maintain higher price levels.

Although Bitcoin is still very volatile, it has experienced a long period of stability before its rapid rise in the past two months.