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

[TeraBite]

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.

We’re very close to all time high Bitcoin is unstoppable right now, Paypal is the Catalyst of this massive bullrun. The 2017 pump will become a joke in the current market scenario, big companies realise the potential of Bitcoin and cryptocurrency. This craze will probably boom until 2021 because more positive things are coming, its just warming up.

BTC is in high demand due to pandemic situation all around the world institutional investors are hedging against hyper inflation and that could be the result why it showing rapid growth. I also believe in coming months it will gain more value and we will it turning into Trillions Dollars market even at the moment it looking very hard but it would happen very soon.

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[Sithara007]

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.

We’re very close to all time high Bitcoin is unstoppable right now, Paypal is the Catalyst of this massive bullrun. The 2017 pump will become a joke in the current market scenario, big companies realise the potential of Bitcoin and cryptocurrency. This craze will probably boom until 2021 because more positive things are coming, its just warming up.

It looks to me that the real spike will appear next year. What we are witnessing now is just the tip of the iceberg. But it will depend on a lot of factors. Most of the PayPal Bitcoin users are venturing for the first time in to the world of cryptocurrency and this makes them vulnerable to panic selling. It will be interesting to notice how these users behave to various FUDs and corrections in the market.

[Golftech]

Institutional investment impacts the crypto space which can not be denied. But there are many retail investors who are also causing the massive bull run of bitcoin. In crypto space what I think is " the early is the better". Those institutions will make a big amount of money in the future because the demands of cryptocurrency will be greater than it supplies in near future.

If those institutional investors are here to stay, the value of this assets will rise more
and will continue to keep reaching higher, we don't know  the peak  for now as the
more investors to come the more value it will added to the market, plus knowing that
bitcoin have limited volumes. It weights the possibilities to reached more..

[Mauser]

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.

I agree with you, we are so close to 20k USD again. Let's do it guys, this would be an awesome Christmas present for all of us. I think we will see a new all time high this year. Everything is looking good. I wouldn't sell at the moment, prices are going to go up for sure.

[dothebeats]

It started as a pretty good news for adoption when it was first announced, although as the story progresses, it feels like most of these institutions are slowly choking bitcoin up to the point that they control most of it, leaving most of the general population empty-handed or just at the sidelines wishing for a huge crash to get their own share of the pie. The only way to offset this huge, uneven distribution of bitcoins, or to stop them from acquiring even more is for the price to shoot up so high that the risks would soon outweigh the benefits of acquiring coins. While they have the capacity to risk more than us, they would surely still think twice to invest if they are already sitting on a huge pile of money with the bitcoins they already acquired. Either way, more people coming in on the industry is good, but it's alarming that tens of millions are being controlled by a few entities.

[stompix]

The only way to offset this huge, uneven distribution of bitcoins, or to stop them from acquiring even more is for the price to shoot up so high that the risks would soon outweigh the benefits of acquiring coins.

And do you think that people will invest more in BTC if they see the value skyrocketing at $100k for example?
We're still not over that newbie concern of not investing because they can't afford an entire bitcoin, a thing which makes no sense but on top of that there will be also the fear of an imminent crash, as bitcoin has a history of rapid ups and downs.

And there is one more thing, where would people who have not invested yet find the money to buy more at those rates, as we can assume that at this time there are two categories left
- those that have no money and who will still have no money
- those that were afraid to invest who will react the same as those investment funds, still afraid to do so

While they have the capacity to risk more than us, they would surely still think twice to invest if they are already sitting on a huge pile of money with the bitcoins they already acquired. Either way, more people coming in on the industry is good, but it's alarming that tens of millions are being controlled by a few entities.

Those entities are not that few,  those bitcoins which are "owned" by grayscale are actually owned by investors, and one company can have a multitude of those and a lot of the investment funds that are buying grayscale stocks are themselves owned by a multitude of persons. Them holding coins is the last of our problems, better to have those owned and stored by some known public companies that have to go through SEC filings than some unknown guys who played the pump and dump whale game for a little too much time in my opinion.

[pilosopotasyo]

but it's alarming that tens of millions are being controlled by a few entities.

That's likely to happen they have the means they can control the price the volume it has become the battle of the whales and we small investors are now a pawn on this kind of battle, we'll see more companies as big as PayPal to buy Cryptocurrency and integrate Cryptocurrency, we have read that some billionaires are already allocating their portfolio to Cryptocurrency.

[chretienm]

Let's imagine that them and few other whales bought up all the supply and the price skyrocketed to $100k, then what? Are they gonna sell&buy it from each other? Bitcoin will become is a very expensive asset in the hands of the few, no mass adoption will ever happen. Maybe that's their plan who knows. There are many very rare earth elements which are much more expensive that gold or platinum so what? Not many know and use them.

[Spaffin]

Let's imagine that them and few other whales bought up all the supply and the price skyrocketed to $100k, then what? Are they gonna sell&buy it from each other? Bitcoin will become is a very expensive asset in the hands of the few, no mass adoption will ever happen. Maybe that's their plan who knows. There are many very rare earth elements which are much more expensive that gold or platinum so what? Not many know and use them.

The fact is that big Whales already receive quite large incomes, including paypal. There is some opinion that big whales, including paypal, will be able to maintain the value of Bitcoin at the highest level, thanks to their capital, without allowing a fall in the landfill. Perhaps they will achieve a situation where most of the small Bitcoin holders sell their assets.

[bittick]

So it's confirmed that paypal not gonna be a mere middle man but the one who provides bitcoin considering they bought a big chunk of newly mined bitcoin. Maybe they not gonna buy bitcoin continously but instead just testing the water providing some bitcoin for their users and see whether it's profitable or not. however still a good thing that now bitcoin gain even more exposure hope it contributes hugely to the bullish run so we can really see the new ATH this year or next year.

[Vishnu.Reang]

So it's confirmed that paypal not gonna be a mere middle man but the one who provides bitcoin considering they bought a big chunk of newly mined bitcoin. Maybe they not gonna buy bitcoin continously but instead just testing the water providing some bitcoin for their users and see whether it's profitable or not. however still a good thing that now bitcoin gain even more exposure hope it contributes hugely to the bullish run so we can really see the new ATH this year or next year.

It is actually very simple. For PayPal, the traditional markets are getting saturated and in order to improve their annual revenues, they need to venture in to new sectors. And cryptocurrency is obviously one of the most promising innovations of this decade. FaceBook also tried its luck with cryptocurrency, but it didn't turned out that well for them. The difference here is that unlike FB, PayPal is trying to adopt an already established innovation (BTC) rather than attempting to create a new copycat version (Libra). 

[jrrsparkles]

Paypal isn't actually buying and selling bitcoin right? Because they just integrated with a crypto exchange that is how they offer their customers to buy and sell bitcoin and other few cryptos and also they are not responsible for any hacks/scams from that crypto exchange side then how paypal is buying the bitcoins?

[BTCappu]

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.

I agree with you, we are so close to 20k USD again. Let's do it guys, this would be an awesome Christmas present for all of us. I think we will see a new all time high this year. Everything is looking good. I wouldn't sell at the moment, prices are going to go up for sure.

I am not so worried about the price now because we have the corona vaccine made and now the economy will only recover which directly impacts the price of bitcoins positively because new investors will come into the market now and the price will continue to grow over the next year and it would be the best time to sell once the economy is fully recovered because then the price might get stable again.

Paypal buying 70% of the newly mined bitcoins is good for everyone because paypal isn't buying for their own use instead that shows the investors are now investing through paypal and that means the price keeps going up.

[Kong Hey Pakboy]

Paypal isn't actually buying and selling bitcoin right? Because they just integrated with a crypto exchange that is how they offer their customers to buy and sell bitcoin and other few cryptos and also they are not responsible for any hacks/scams from that crypto exchange side then how paypal is buying the bitcoins?

I think PayPal is actually buying bitcoin on the market because they are offering their clients to buy and sell cryptocurrencies on its network that PayPal is buying bitcoin, and they sell it to its users. It is one of the reasons why we are now almost to reach bitcoin's ATH price because PayPal is buying 70% newly mined bitcoins.

[plr]

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.

This is a long term strategy that will eventually pay off big corporation operate in a long haul or long term they want to by as much as they can at this price because they already know that many institution and corporation are coming and they want to have an edge in the competition, I'm pretty sure they have many plans in the long haul.

[bryant.coleman]

This is a long term strategy that will eventually pay off big corporation operate in a long haul or long term they want to by as much as they can at this price because they already know that many institution and corporation are coming and they want to have an edge in the competition, I'm pretty sure they have many plans in the long haul.

That may be strategy behind PayPal's move, but let's not forget that it was FaceBook which ventured first in to the cryptocurrency sector. However unlike the conciliatory approach by PayPal, FB's stance was far more hostile and they wanted to introduce their own version of crypto. Anyway, the fact that PayPal made this move despite knowing about the negative outcome of Libra proves that they are confident of Bitcoin's future potential.

[Kakmakr]

There are a couple of things that are getting me excited now..

Remember, PayPal bought those bitcoins to "feed" the demand for coins for the US Market (only selected clients) .... they are still planning to extent this option to all their other clients and next year to their "selected" global clients.

Also, most of the coins bought... cannot be used on their supported merchant network and the CEO said... that is coming in the near future... so imagine what is going to happen ...after that announcement is made. 

Yes, we are still in for a very wild ride and I expect other large corporate giants are going to follow PayPal's example soon. 

[stompix]

Paypal isn't actually buying and selling bitcoin right? Because they just integrated with a crypto exchange that is how they offer their customers to buy and sell bitcoin and other few cryptos and also they are not responsible for any hacks/scams from that crypto exchange side then how paypal is buying the bitcoins?

Paypal is just mandating Paxos to provide them with the bitcoins their clients are buying on their platform, so for every guy that buys 1000$ worth of BTC in Paypal, Paxos buys from the market 1000$ worth of it and stores it.

All custody of and trading in Crypto Assets is performed for us by our licensed service provider, Paxos Trust Company, LLC ("Paxos"), or other appropriately licensed provider of trading and/or custody services that we identify from time to time ("Service Provider").
PayPal may buy and sell cryptocurrency through an affiliate of Paxos acting as a market maker to provide liquidity (the "Paxos Affiliate").

https://www.paypal.com/us/webapps/mpp/ua/cryptocurrencies-tnc

The difference here is that unlike FB, PayPal is trying to adopt an already established innovation (BTC)

You're giving them a way to much credit, they have seen that people are still having trouble getting bitcoins from various sources and they stepped in offering their service in exchange for fees, not only are they gaining a lot but they also might get rid of the scams that were happening with people trying to sell and buy bitcoins via their service.

[FanEagle]

Paypal didn't do anything, it was the people who are in paypal and uses paypal's crypto section that bought it. People need to realize that paypal does nothing, it is just a middleman, if there are tons of crypto purchased from paypal that means it was regular humans that bought it and not paypal itself, paypal just helped those people.

So, if people decide to never use paypal for crypto ever again, paypal would have zero significance on crypto all of a sudden as well. Obviously it will never be zero, and this could grow in the future as well, but we have to remember that it is still the market that decides this. We have to learn the difference between places like grayscale that directly buys bitcoin from the market, versus paypal that is just helping others buy from the market.

[so98nn]

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.

Certainly this is truthful. What logic I am applying is, PayPal has just offered platform to transact in the form of bitcoin like what other wallets or exchangers do. The only thing is you get a trusted platform who will use your bitcoin to trade into market. You never know what the team is doing behind this, how they are manipulating the current prices.

If the news about acquisition of virgin bitcoin is true then boom, this market is coming under control of paypal staff. Yeah, thats undeniable probably i would say.

In our language we could say paypal is one step closer to become giant whale in the crypto space.