Paypal users buying bitcoin in huge amount
- PayPal buys 70% of Bitcoin supply mined to meet demand in its crypto service which includes ETH, LTC, BCH.
- Companies that have invested in Bitcoin have an estimated $15 billion or 842,229 BTC accumulated.
Pantera Capital has published a report on the impact that the entry of big players into the crypto market has had. There, the investment firm claims that Square and PayPal users buying bitcoin increased the buying pressure on Bitcoin. Therefore, Bitcoin’s price has received a positive boost.
At the time of publication, BTC traded at $18,532 with a 2.79% gain in the last 24 hours. In the weekly and monthly charts, the earnings are 13.98% and 55.68% respectively. In terms of market capitalization, Bitcoin has reached a new all-time high with $350 billion surpassing, as celebrated in the crypto community, Mastercard.
The current rally, says Pantera Capital, shows signs of being more “sustainable” than in 2017 by relying on institutional demand. Therefore, it could go beyond a new all-time high in the price of BTC. The investment firm has determined that together PayPal with 70% and Square with 40%, buys more than the supply produced by BTC. They do this by increasing their offer for each BTC.
Due to the requirements of the Bitlicense that PayPal has acquired from the state of New York, the company must maintain “real Bitcoin” at a 1-to-1 parity for each unit purchased by its users. As indicated by Pantera Capital, PayPal’s users are estimated at 300 million. In comparison, Bitcoin has about 100 million users. The report stated the following when showing the image below:
The dashed horizontal line in the graphic represents the total supply of newly-issued bitcoins plus the original itBit volume. If their growth persists, PayPal alone would be buying more than all of the newly-issued bitcoin within weeks.
