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Report: PayPal and Square are buying every single mined Bitcoin

Nicholas Say
Nicholas Say

A report published by Pantera Capital alleges that the Bitcoin rally has been under the control of PayPal and Square, with the giants buying every single mined Bitcoin, triggering shortages in the markets. PayPal is making it extremely easy to embrace concurrency. The firm put its ideas into the markets with a range of crypto services offerings, greatly affecting the public view on Bitcoin and other cryptocurrencies' adoption.

Pantera Capital commented,

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 is likely the leading factor for this huge impact. Pantera Capital estimated that the number of PayPal’s accounts are 3 to 1 higher than the current number of Bitcoin addresses, reaching 300 million people. It's simple to jump into Bitcoin with PayPal. Pantera Capital pointed out the involvement of fintech giants in crypto space was a new phenomenon, which may lead to a more stable bull run compared to the one in 2017.

Pantera claims that PayPal and Cash App are buying so much Bitcoin that it could cause a supply shortage,

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.”