Victor Ugochukwu · Dec 14, 2020 . 5min read
Pantera Capital claims PayPal is responsible for Bitcoin scarcity and price rise
Pantera Capital claims PayPal is the reason behind the bitcoin scarcity leading to the rise in prices of BTC as PayPal purchases 70% of it.
By Komal Joshi · Nov 23, 2020 . 5min read
The bitcoin supply shortage is because of the powerful support coming from PayPal, claims Pantera Capital. Pantera Capital, a crypto investment company lately issued a report showing that the entry of payment giant PayPal combining Bitcoin and other cryptocurrencies into its platform provided a notable rise to Bitcoin price. Pantera Capital claims that PayPal is the reason behind Bitcoin scarcity and rise in price. It explains that bitcoin scarcity is owing to the recent price surge as the lately minted BTC is bought by PayPal.
For the uninformed, PayPal currently established its new service that allows consumers to hold, sell, and buy cryptocurrencies straight from their PayPal accounts. PayPal enables its consumers to purchase Bitcoin Cash, Ethereum, and Litecoin. With PayPal’s 300 million active users, the new service is having an immense influence on the price of the leading cryptocurrency.
PayPal is acquiring 70% of the freshly mined Bitcoin.
Pantera Capital states that since PayPal is live, Bitcoin trading volumes are exploding. PayPal is now buying approximately 70% of the new supply of Bitcoins. According to Pantera, in a few weeks, it would be purchasing more than all of the newly-issued Bitcoin. Pantera stated that the scarcity of Bitcoin supply and greater demand set higher prices.
Moreover, the injection of big financial firms like Square payment company and PayPal has set an excellent example for others. Additionally, larger financial institutions would accompany their lead. Moreover, all financial institutions, such as banks would compete for cryptocurrencies. The supply scarcity would grow even more imbalanced as more firms attempt to fund in Bitcoin. Thus hiking the price up.
Meantime, Pantera Capital, states that as a consequence of the apportioned U.S. elections, where the Democrats gripped the White House, there would be added pressure on the U.S. Federal Reserve to grow its balance sheet. Such a money-printing policy would lead to inflating the prices of things. It involves equities, real assets, stock, Treasury bonds, etc. However, BTC should benefit any which ways. Investors see it as safer than government fiat currencies.
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