Paypal bought up to 70% of all the newly mined bitcoin recently

[bearexin]

In a way I am happy because their huge investment in bitcoin alongside other big institutions is leading us to a higher price, and that’s why the price of Bitcoin has been bullish as of recent. Those of us that have invested earlier are now going to be the lucky ones as we are going to be making profit from our early investment in the asset as the price keeps on growing.

But in one way, I am not really happy and that’s because I feel that them buying too much if the cryptocurrency and storing it in a private wallet, which I know they will be doing for a long time, is not good.

[bittick]

I have a feeling that many people will underestimate the amount of currency that Paypal will be pouring into Bitcoin right now, if they have decided that it will become a large part of their payment system (and it seems they have) then they will want to get hold of as much as possible. They will definitely be seeing all the hedge funds and money managers who are also snapping it up right now. 21 million bitcoins isn't really all that much in the grand scheme of things and for billion dollar businesses, the lack of erosion from interest rates will be a very tempting factor, especially when the amount in circulation will gradually be lost (either through users losing access to wallets or many tiny amounts getting abandoned). Paypal have a huge and captive market of users who will be wanting to buy into this type of "investment", even if they don't understand that their bitcoin will be trapped within the Paypal network. They may even consider the security of the Paypal network to be a very big bonus and buy more that way.

If paypal really buying bitcoins in bulk then the price gonna be going up therefore acquiring large percentage of 21 millions is not an easy feat. Honestly, it seems paypal is just trying out and see whether their business model is profitable or not. The amount the used to buy freshly mined bitcoins before are some peanuts becasue we are talking about paypal here.
But once they see the opportunity they might buy a lot more btcs than ever before, time will tell.

[aioc]

If paypal really buying bitcoins in bulk then the price gonna be going up therefore acquiring large percentage of 21 millions is not an easy feat. Honestly, it seems paypal is just trying out and see whether their business model is profitable or not. The amount the used to buy freshly mined bitcoins before are some peanuts becasue we are talking about paypal here.
But once they see the opportunity they might buy a lot more btcs than ever before, time will tell.

I still don't see the impact, if they are buying newly mined Bitcoin, have they stopped, I hope they will continue buying so we can see the price grow to another all time high, PayPal once they announced their profit, many companies and institution, are going to do the same we owed a lot to Bitcoin, and of course they owed their profit to Bitcoin, it's a win win situation.

[bits4books]

It would be better not to be happy about the increase in the BTC rate in relation to the "pieces of paper " but to be afraid of what it all might end up with. Everyone in the crypto club shouts "decentralization and anonymity are cool" and then rejoice when a semi-state or just a corporate whale buys a bunch of BTC. Are you all right? Where are your slogans about freedom decentralization and all that? Admit it, you don't care about BTC. You don't care about cryptocurrency. You only care how much it will cost tomorrow because you need to close another loan from the Bank.

[lixer]

At the end of the day, the only thing that could really change the price would be places like grayscale and similar places, they literally buy bitcoin and hold it and not sell it, not even depending on you or someone else buying from them because they have money invested into them and they use it however they want, if they need to pay the investors their money back via withdrawal, they can do it with something else other than bitcoin. Hence we need more places like that and not like paypal.

Yeah, we should not be counting on these huge companies to take the miners off our hands. There are talks about how Paypal did this, also about how grayscale bought more as well, and talks about even microstrategy is helping. These are all huge companies and to think that they would be of any help to you or me if it wasn't in line with their own profits would be idiotic.

The moment they realize they could make a lot more profits by just shorting, they will not only buy incredible amount of short futures with serious high leverage that would yield them insane amount of profit when bitcoin prices go down, but they will also sell tens of thousands of bitcoins at their hands to make it actually go down as well, and rebuy when the price is lower too in order to not lose any money along the way.

[CarnagexD]

The contributions they gave to the market is indeed astounding, but to the growth of the coin as a whole? I guess not so much. Especially when we take into account the fact that they are not allowing their users to do anything else with the bitcoins they purchased thru paypal other than to trade it with already existing fiats. I'm not so sure how this can help the coin grow when they are literally telling people bitcoins can be centralized and regulated.

[Nellayar]

we really cant deny the fact that paypal has contribution with the current btc market. though most long-time crypto users here will not use their service, there will always be paypal users that will definitely use their crypto services. and we cant ignore the fact that they have millions of users already.

btw, similar article from cointelegraph- https://cointelegraph.com/news/bitcoin-shortage-is-real-and-paypal-is-the-cause-pantera-capital-claims

so yeah, seems that paypal is storing their btc stash to be available anytime to its users. wont be surprised if they will create their own crypto exchange in the future.

I agree. Paypal also contributed the current pump of bitcoin. The announcement and integration they made using bitcoin really triggers the buyers to buy bitcoin for the past few weeks. We all know how paypal popular to the world and it is really a massive announcement that brings good impact to bitcoin price. That's why it is also an honor for paypal that they pushes the price of bitcoin and bring bitcoins the new all time high.

[iv4n]

The contributions they gave to the market is indeed astounding, but to the growth of the coin as a whole? I guess not so much. Especially when we take into account the fact that they are not allowing their users to do anything else with the bitcoins they purchased thru paypal other than to trade it with already existing fiats. I'm not so sure how this can help the coin grow when they are literally telling people bitcoins can be centralized and regulated.

I think the only contribution they gave to the crypto market is marketing! Just let them talk about Bitcoin and crypto! PayPal is doing something strange for most of us who are in crypto, probably they wish to attract new people, but when they find out what is real BTC and what's not, people will move their funds from them! I never used PayPal, in the end it's just a third party service, why we need that when we can be our own bank? People will figure them out sooner or later, at least I hope that will happen! For now my advice to people is to stay away from PayPal!

[ChrisPop]

With the current raising buying pressure from institutions $20k is a low-ball target. I think Bitcoin will leap forwards towards the $50k once we officially break the $20k mark. It is a psychological price point as well.
Curious when will the Guggenheim fund start investing heavily into BTC. Are they waiting for a break of the ATH or for a dip. Or maybe.. for whichever will happen first.

[Vishnu.Reang]

With the current raising buying pressure from institutions $20k is a low-ball target. I think Bitcoin will leap forwards towards the $50k once we officially break the $20k mark. It is a psychological price point as well.
Curious when will the Guggenheim fund start investing heavily into BTC. Are they waiting for a break of the ATH or for a dip. Or maybe.. for whichever will happen first.

I agree. But the $20K resistance level is really proving hard to breach. At least for now, it looks like the supply crunch in the market is being eased. Also, you can expect more selling, as long term holders would be liquidating some of their holdings to fund year-end vacations. And this is the reason why I am not expecting a resumption of rally before January 2021. 

[davinchi]

Crypto community seems to be divided into two parties in this paypal discussion.

One party says that it is not good to rely one these corporations (which other party doesn't deny) and we should focus on making bitcoin valid all by ourselves without these companies getting involved (other party disagrees), while the other party says it is awesome that paypal decided to join (first party doesn't disagree) and we should encourage them and other bigger parties to get more involved with crypto (first party disagrees).

So, there is a ying yang situation going on in the crypto world where the main topic is that yes it is good that big corporations are involved now, but some say they shouldn't be the biggest party in crypto world while others do not see any problem with it as long as they make a profit.

[Vishnu.Reang]

Crypto community seems to be divided into two parties in this paypal discussion.

One party says that it is not good to rely one these corporations (which other party doesn't deny) and we should focus on making bitcoin valid all by ourselves without these companies getting involved (other party disagrees), while the other party says it is awesome that paypal decided to join (first party doesn't disagree) and we should encourage them and other bigger parties to get more involved with crypto (first party disagrees).

So, there is a ying yang situation going on in the crypto world where the main topic is that yes it is good that big corporations are involved now, but some say they shouldn't be the biggest party in crypto world while others do not see any problem with it as long as they make a profit.

Everyone is free to have their opinion. And I am fine as long as PayPal is not forcing anyone to move their coins to the PP platform. And regarding the critics, I don't understand their issue. No one is forcing them to use PayPal. If they don't have any issue in using various cryptocurrency exchanges, then they should not complain against PayPal as well. Because in both the instances, the private keys are not provided to the users.

[cdtc]

I think paypal getting into bitcoin is a good thing, just think of how many new people will be interested in crypto.
People have trust in these large corporations so when they start implementing bitcoin it will help it to get mainstream.

[Sithara007]

I think paypal getting into bitcoin is a good thing, just think of how many new people will be interested in crypto.
People have trust in these large corporations so when they start implementing bitcoin it will help it to get mainstream.

Completely agree with this. A lot of people have reservations, due to the lack of a clear legal status for cryptocurrency. And this is where the entry of PayPal can make the difference. PayPal is a widely recognized brand name, being in the payment processing sector for more than two decades. This can actually prompt some of the undecided investors to consider investing in Bitcoin.

[jaysabi]

It would be better not to be happy about the increase in the BTC rate in relation to the "pieces of paper " but to be afraid of what it all might end up with. Everyone in the crypto club shouts "decentralization and anonymity are cool" and then rejoice when a semi-state or just a corporate whale buys a bunch of BTC. Are you all right? Where are your slogans about freedom decentralization and all that? Admit it, you don't care about BTC. You don't care about cryptocurrency. You only care how much it will cost tomorrow because you need to close another loan from the Bank.

It's because most people aren't into crypto for the sake of crypto, they just want the gains and bitcoin among regular folks is driven by FOMO more than anything else. The atmosphere around the sentiment breeds a cult-like mentality where if you're not a maximalist you're a hater. There's not much room for nuanced, well-thought out positions.

[bits4books]

It would be better not to be happy about the increase in the BTC rate in relation to the "pieces of paper " but to be afraid of what it all might end up with. Everyone in the crypto club shouts "decentralization and anonymity are cool" and then rejoice when a semi-state or just a corporate whale buys a bunch of BTC. Are you all right? Where are your slogans about freedom decentralization and all that? Admit it, you don't care about BTC. You don't care about cryptocurrency. You only care how much it will cost tomorrow because you need to close another loan from the Bank.

It's because most people aren't into crypto for the sake of crypto, they just want the gains and bitcoin among regular folks is driven by FOMO more than anything else. The atmosphere around the sentiment breeds a cult-like mentality where if you're not a maximalist you're a hater. There's not much room for nuanced, well-thought out positions.

So we have created what we have now. Who shouted "BTC is the best investment"? Who shouted that BTC will cost $100k and that it is only for this purpose and needed?
Everyone got what they wanted - almost the death of the idea of cryptocurrency and its transformation into a an investing instrument. And now it's pointless to think that crypto is cool because of idea, and I think that's the end of it.