After announcing support for making cryptocurrency transactions on its platform last month, PayPal was seen buying virgin Bitcoins aggressively since then. As per Pantera Capital’s monthly report, PayPal has bought over 70% of freshly minted Bitcoins in last month alone. Together with Cash App, it has bought over 100% of these virgin Bitcoins.
PayPal and Cash App Buys 100% Virgin Bitcoins
PayPal’s announcement to support cryptocurrency last month has a significant impact in the crypto community. While it pushed the Bitcoin’s price to touch $12,000 mark then, it’s now rallying with PayPal’s bullish actions. As per Pantera Capital’s monthly report, PayPal alone has bought over 70% freshly minted Bitcoins in October 2020.
The payments company has partnered with Paxos for converting cryptocurrency transactions made on its platform and is using its institutional exchange – itBit for buying Bitcoins aggressively. Together with Square’s Cash App, PayPal has bought over 100% of virgin Bitcoins last month.
Other reports also tell that over 21 institutions including Galaxy Digital Holdings and Microstrategy Inc have a combined holding of 832,351 Bitcoins, which is over 4% of total Bitcoins in circulation valued at $14.42 billion. This kind of heavy institutional buying pushed Bitcoin’s price to soar astronomically, touching the near $19,000-mark this week.
Besides buying, PayPal’s bullish thoughts on cryptocurrency growth are what fueled the optimism in the community. The company’s decision of supporting cryptocurrency transactions is a huge push, telling that users can buy/sell/hold and even pay their merchants (over 26 million worldwide) with their digital coins, which will be converted into fiat currencies for merchants.
Since Bitcoin is the major wagon puller, all alternative coins race up along with Bitcoin’s growth if they aren’t manipulated. And if PayPal continues to be bullish like this, it alone has the power to buy out 100% virgin Bitcoins being minted every time, making imbalances in the holding and leading to unfair power later.
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