PayPal has bought 70% of the newly minted bitcoins since it started offering Bitcoin (BTC) buying, selling and spending services in October 2020.
Added with Square’s Cash App, both fintech firms are buying up more than all the newly minted bitcoins.
PayPal’s Bitcoin service runs on crypto exchange itBit, and according to Pantera Capital the exchange’s volume has ‘exploded’ since PayPal started offering BTC to its users, and as a result is having to purchase nearly all of the newly minted bitcoins.
‘[itBit] was doing a fairly constant amount of trading volume … 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 Making It Easier For Users To Buy Bitcoin
Paypal announced in October that its customers would be able to buy, sell and hold Bitcoin within its payment network. And since the announcement, the Bitcoin price has risen 43% from $11,828 to $18,575.
PayPal also allows its users to spend Bitcoin, and a few other altcoins, at the payment giant’s 26 million merchants. The service launched in the US at first, but is expected to roll out globally in 2021. Read More