Paypal has bought 70% of the BTCs mined in the last days, says study
The hedge fund manager also said that demand for Bitcoins in Paypal has exploded.
According to a report published by hedge fund manager Pantera Capital, Paypal „bought“ at least 70% of all Bitcoins mined in the last 30 days. Together with Square, the two companies are „buying 100% of all newly created Bitcoins (virgins)“.
The Bitcoin network issues new digital coins in a fixed and predetermined way every 10 minutes since the last halving, only 6.25 new BTCs are created. Pantera Capital’s thesis revolves around an understanding of the market supply side of digital currency.
„PayPal and the Cash App (Square) are already buying more than 100% of all newly issued bitcoins,“ the company says.
„When other larger financial institutions follow PayPal’s lead, the shortage of supply will become even more unbalanced. The only way to balance supply and demand is for a higher price,“ says the company.
The idea is that as Bitcoin offer decreases, demand increases – leading to a price appreciation.
Itbit volume increase implies that in four weeks launch, Paypal is already buying nearly 70% of the new Bitcoin offer.
High of 2020 is more sustainable than in 2017
The hedge fund manager also said that demand for Bitcoins in Paypal has exploded. Citing the fact that the Bitcoin community is proud to have grown to 100 million users in twelve years, she recalled that PayPal has 300 million active users, making the new high and demand for digital currency much more sustainable than in 2017.
The company also compared the current price hike to 2017 and said there is no exaggeration, citing Google’s metric: „The search for the term ‚bitcoin‘ on Google does not indicate a „bubble.
„In the 2013 and 2017 bubbles, Google’s searches were an important indicator of the market. Currently, Google searches for ‚bitcoin‘ have not changed much. It doesn’t seem overestimated“.