As the Bitcoin price keeps surging the demand for Bitcoin is far outstripping new supply. The scarcity of new BTC has led some to suggest we might even have a ‘supply crisis.’
There are 900 BTC mined daily, and 27,000 every month, and while there will always be market sellers, the demand for Bitcoin from the likes of PayPal, Square and Grayscale means Bitcoin’s scarcity has never been more evident.
Square Inc. sold a record 160,000 BTC through its Cash App in Q3, which is up x11 year on year. And the fintech firm led by Jack Dorsey has to maintain enough custody of BTC to keep up with the demand for Bitcoin through its application.
Added with PayPal’s successful entrance into the Bitcoin space, it’s clear that consumer demand for Bitcoin is far outstripping new supply.
PayPal entered the Bitcoin space to mixed reactions from Bitcoiners, with some Bitcoin Maximalists not happy with PayPal’s decision to not offer full custody option for anyone buying Bitcoin through the payment giant.
PayPal enabled limited Bitcoin purchases from their user accounts in the US. The demand for Bitcoin with PayPal was so high, however, that CEO Dan Schulman raised buying limits for BTC, after what he said was ‘two times to three times of what our expectations were.’ Read More