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

[Poker Player]

We knew that institutional investors were behind the latest price increases but it seems that Paypal is monopolizing most of it:

"Paypal bought up to 70% of all the newly mined bitcoin since the payments giant started offering cryptocurrency services four weeks ago.

Now that’s according to estimates by hedge fund manager Pantera Capital, as revealed in its latest monthly blockchain letter. Together with Square’s Cash App, the two companies are buying more than 100% of all newly issued virgin bitcoin (BTC), it says....

"Pantera Capital says the shortage of bitcoin resulting from high corporate demand means that the likes of Cash App, which recently reported a record $1.6 billion bitcoin revenue, will have to pay more for each coin.

“When other, larger financial institutions follow their (Cash App) lead, the supply scarcity will become even more imbalanced. The only way supply and demand equilibrates is at a higher price,” it explained.

Source: Paypal Bought 70% of All Newly Mined Bitcoin Last Month as Demand Rockets.

I think we are going to hit 20k pretty soon. News like this are non-stop these days. I don't want to even think what will happen when the general public FOMO starts.

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[AmoreJaz]

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.

[JeffBrad12]

Paypal's effect looks like a real thing but if this will trend will still continues and then the price of bitcoin can go even higher and little shrimp can afford to buy bitcoin.
Paypal is not the only one and some management funds in US have been filling documents for SEC to be able to use bitcoin as a part of their portfolios. I expect more and more newly mined bitcoin will be bought by big companies.
It seems like big players will be controlling the price of bitcoin.  Imagine companies with billion dollars of money keep buy more and more bitcoin.

The monopolize looks real.

[Febo]

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.

Bitcoin will never be available to paypal users. hey can never withdraw them.  Only one that will be able to use papayl users Bitcoin will be paypal itself. They will be able to manipulate Bitcoin market with those coins from their users. Paypal users will be only able to watch.

[The Sceptical Chymist]

I think we are going to hit 20k pretty soon.

You know, if you'd asked me in March if bitcoin had a chance to hit $20k by the end of the year, I would have said you're crazy--and yet here we are in November, with bitcoin very close to that price.  It'll never cease to amaze me what bitcoin can do, and I think you're right.  $20k is probably coming shortly.

Regarding the article, I find it interesting and it sounds logical that PayPal had at least some part of bitcoin's recent explosion if they've been buying it up by the truckload. 

Bitcoin will never be available to paypal users. hey can never withdraw them. 

Yeah, that's the huge sucky part of what PayPal is doing, i.e., selling people bitcoin that they don't actually have control over.  As I've said a few times before, that's exactly what Robinhood is doing.  But who knows, maybe PayPal will eventually change that and allow deposits and withdrawals of bitcoin.  That would be fantastic IMO.

[suzanne5223]

There is some misunderstanding going on in the cryptocurrency sphere ever since the day Paypal announced the integration of Paypal and the last time I checked most of the crypto done on Paypal was operated by another crypto company but people seems to believe every positive trend posed by the market was the role of paypal whereas Paypal was not among the holding big amount of Bitcoin.

[error08]

There is some misunderstanding going on in the cryptocurrency sphere ever since the day Paypal announced the integration of Paypal and the last time I checked most of the crypto done on Paypal was operated by another crypto company but people seems to believe every positive trend posed by the market was the role of paypal whereas Paypal was not among the holding big amount of Bitcoin.

Do you mean 70% is a small amount and it's not driven the price to increase a little bit that it doesn't have an impact on the market?
They've just started, not even really launch it fully on their app to buy on merchants and other features.
PayPal has to do it, buy bitcoin as much as they could to keep up with the demand from users who buying bitcoin or they will end up lost in the future when the price keeps increasing.

[FrozenBit]

I think we are going to hit 20k pretty soon. News like this are non-stop these days. I don't want to even think what will happen when the general public FOMO starts.

After paypal's confirmation of accepting bitcoin payments, things are going very well with the market, indeed if the problem was raised at the beginning of the year, I believe people would never believe it. because the epidemic has been controlling us for a year. But the positive signals in the market recently, are reinforcing the confidence of the market in the near future.

[samcrypto]

There is some misunderstanding going on in the cryptocurrency sphere ever since the day Paypal announced the integration of Paypal and the last time I checked most of the crypto done on Paypal was operated by another crypto company but people seems to believe every positive trend posed by the market was the role of paypal whereas Paypal was not among the holding big amount of Bitcoin.

There might be a third party between this agreement but still Paypal is the mother company of all and we know the reputation of Paypal and that affects the mindset of the investors whether they fully own Bitcoin or just a third party company, this is still a great news for the market. Now that they support bitcoin, its good for them to totally own Bitcoin, maybe its not that big but at least we have their support and that's what matters to some I guess.

[magneto]

Not necessarily any "new" news. We've known for a while now that it would only be a matter of time before institutional investors jump on the wagon.

These institutional injections into the bitcoin scene are obviously great for bitcoin in the short run, but if the distribution of coins is too concentrated then it could definitely undermine the equity of the markets in the long term. Though, with BTC already pretty much mined up, it is not apparent that Paypal doing this at this late stage will cause any tangible harm.

It's really interesting to see all these firms completely do a 180 turn on BTC every time a bull market swings around. It just shows the disconnect between mainstream media portrayal, which is easily swayed by activity, and the real fundamentals underlying BTC which has not changed for a long time now.

[jseverson]

Bitcoin will never be available to paypal users. hey can never withdraw them.  Only one that will be able to use papayl users Bitcoin will be paypal itself. They will be able to manipulate Bitcoin market with those coins from their users. Paypal users will be only able to watch.

I'm inclined to agree with you, but never is a strong word. The fact that Paypal is stocking up could indicate that every bit (or at least most) of Bitcoin they sell will be backed by real coins (which was a concern for some people when it was initially announced), so they would at least be capable of allowing users to withdraw BTC. I'm not holding my breath, but they haven't even rolled out this service worldwide yet, so it's probably far from a finished product as far as they're concerned.

Manipulation is definitely a touchy subject, but with wealth spread around the multiple institutions starting to pour in, I imagine it would be hard for any one of them to do significant damage alone. I would also think that the SEC keeps a close eye on everything Paypal does. We'll see though I suppose.

[sakbahagiaku]

In the title of the article it is written that paypal bought bitcoin 70% bitcoin which was just mined last month, I want to ask how many new bitcoins were mined in the last month, I think this is amazing because it can make bitcoin prices soar on the exchange.

[philipma1957]

There is some misunderstanding going on in the cryptocurrency sphere ever since the day Paypal announced the integration of Paypal and the last time I checked most of the crypto done on Paypal was operated by another crypto company but people seems to believe every positive trend posed by the market was the role of paypal whereas Paypal was not among the holding big amount of Bitcoin.

Do you mean 70% is a small amount and it's not driven the price to increase a little bit that it doesn't have an impact on the market?
They've just started, not even really launch it fully on their app to buy on merchants and other features.
PayPal has to do it, buy bitcoin as much as they could to keep up with the demand from users who buying bitcoin or they will end up lost in the future when the price keeps increasing.

900 coins a day x 70% = 630 coins. which would be 12.6 million a day at 20k a coin

[orions.belt19]

As compared to the 2017 bull run fueled by the ICO craze which was pretty unsustainable, we can expect a different kind of bull run. This year, the narrative is super different. The bullrun has been triggered bby institutional investors moving into Bitcoin (Microstrategy, PayPal, DBS, Grayscale, Square, etc.)

[romero121]

PayPal has full fledged got into the cryptomarket, and with the reqular acquiring of large volume of bitcoin it will be having big plans behind. Anyhow the decentralized operation of the network shouldn't be affected through this centralized firm's acquiring of large volume of bitcoin. Compared to the entire supply atleast 30% of the bitcoins were in the hands of whales who try to make movements in the market.

Now it is PayPal, maybe we can expect more similar service providers get into the acquiring of bitcoin to stay active in the race.

[ethereumhunter]

As compared to the 2017 bull run fueled by the ICO craze which was pretty unsustainable, we can expect a different kind of bull run. This year, the narrative is super different. The bullrun has been triggered bby institutional investors moving into Bitcoin (Microstrategy, PayPal, DBS, Grayscale, Square, etc.)

It could be true. Even if Paypal bought up to 70% of all the newly mined bitcoin, that will help bitcoin price increase and be adopted by their members because we know that Paypal has a large member. If that can grow fast, it will also help bitcoin have mass adoption, and once the mass adoption can grow, bitcoin will become mainstream. And that will attract more investors to come to the bitcoin world.

[Wexnident]

It's not surprising tbh, Paypal is acting as the wallet for users who buy crypto using Paypal after all, and even if we do consider that it's only in the US, it's still a pretty big population. Imagine if they spread the function for global use, they'd buy quite an amount of Bitcoin imo just to accommodate the buys made by their customers. Ofc, this still means that paypal actually holds the bitcoin of their customers, not them.

I'm inclined to agree with you, but never is a strong word. The fact that Paypal is stocking up could indicate that every bit (or at least most) of Bitcoin they sell will be backed by real coins (which was a concern for some people when it was initially announced), so they would at least be capable of allowing users to withdraw BTC. I'm not holding my breath, but they haven't even rolled out this service worldwide yet, so it's probably far from a finished product as far as they're concerned.

Well, currently it's a never. That's a fact imo. And Paypal is basically stocking up on coins themselves because a rise in BTC price means they have to join the flow of increasing the BTC-USD rates in their company itself. That isn't the problem here really, it's just a matter of how Paypal is holding the coins when it's the customer themselves who should be holding it. It's like asking someone to hold your wallet. As for worldwide, afaik they were looking for a crypto merchant that could accommodate for each country, which is why it was only mainly tested on the US, since they already had negotiations done.

[manfredmann]

Pretty sure paypal has a huge bitcoins holding now. However,  as they are planning to make more bitcoins available to all of their users wishes to get more bitcoins using their platform. This means that bitcoin is ready and available and this is actually a good news to bitcoin and bitcoin users. The result is clear and visible that bitcoin market now has been doing well. We are already in th bullish trend and we will hope that it can grow and break the ATH recorded in the year 2017.

[ampu]

The decreasing amount of BTC on exchanges with Paypal offering Bitcoin on their payment system that they buy 70% of the mined Bitcoins shows their determination to provide related services. to Bitcoin and cryptocurrencies.
Bitcoin's value has not declined since last month since there is no source to sell to the market. I see this as the main reason that led to the sharp rise in Bitcoin price in October and November.

[nrvasquez]

Ofcourse as a big party, Paypal will get the highest profit from FOMO and bullrun this time. but on the other hand they are also the party that triggers the bullrun, so I think it will be a healthy bullish if other big parties participate.