Posted on 22-Nov-2020 21:54
Views 411
The recent bitcoin (and altcoins) bull run mostly attributed to PayPal latest announcement to support selected cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. From BTC/USD chart the actual bull run started from the mid of March when stock market started its recovery from pandemic crash.
While many youtubers and articles pointing out that 110% of all mined bitcoins bought by PayPal and Square and this puts the pressure on BTC liquidity bringing price up, Im a bit skeptical if this is indeed the reason. Why PayPal will by bitcoins and is there any trustworthy source of this claim? Im not referring to bitcoin news like coindesk and others, these only speculate about cryptos.
I think there is misunderstanding what actually PayPal introduced and many not really reading the facts but repeating what they want to hear.
I would suggest reading PayPals FAQ: https://www.paypal.com/us/smarthelp/article/FAQ4398
If I summarize what PayPal did is a step to increase their revenue from conversion fees between fiat to crypto and vice versa:
PayPal gives you an option to convert fiat money to the selected cryptocurrencies, same as Coinbase does.
You cannot trade cryptos
You cannot make purchases with cryptos
You cannot send cryptos between PayPal accounts
I personally dont see here any real adoption. As of now this PayPal feature open to US customers only, not to all 300M+ PayPal accounts. And the same US customers could do the same on Coinbase for years.
Maybe Im missing something (not FOMO), please comment and share your thoughts.
