PayPal and Cash App are Behind the Bitcoin shortage in the Market
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Opinion: PayPal and Cash App are behind the Bitcoin shortage in the market
The start of Bitcoin support by PayPal, combined with active purchases through Square’s Cash App, has a significant impact on the scarcity of the first cryptocurrency. And it leads to an increase in the price of the asset. It is stated in the last letter of the investment company Pantera Capital.
The company estimates that Cash App accounts for 40% of all Bitcoin issued. PayPal has just launched a service to directly buy cryptocurrencies, and this is already having a huge impact on the market, the report says.
PayPal users buy about 70% of all issued bitcoins, according to analysts’ calculations. This is evidenced by the growth of volumes on the itBit regulated exchange, which is backed by the PayPal partner Paxos.
The dashed horizontal line in the graph represents the total supply of newly issued bitcoins plus the original itBit volume. According to Pantera Capital, if this growth continues, within a few weeks PayPal alone will start buying more bitcoins than it is issued.
Researchers claim that PayPal and Cash App customers are already completely withdrawing from circulation all bitcoins mined daily.
About Pantera Capital
The venture capital firm Pantera Capital has increased the volume of attracted financing for the flagship bitcoin fund by $ 5 million, bringing this figure to $ 134 million. Such data are contained in the reports for the US Securities and Exchange Commission (SEC).
Launched in 2013, Pantera Bitcoin Fund became the first bitcoin fund in the United States. From the beginning of the year to November 17, it brought investors 142% profit excluding commissions.
According to the company’s July report, the Pantera Bitcoin Fund has returned over 15,000% over seven years.
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