Bitcoin Shortage is Real; PayPal & Cash App Buying More Than 100% of All Newly-Issued BTC

Ever since the Bitcoin halving on May 11, a mere 900 BTC have been generated every day, half of what has been mined before that day.

At the time, BTC price was around $8,500, and legendary investor Paul Tudor Jones had just come out with his Bitcoin bull thesis calling it the fastest horse as an inflation hedge.

While Square’s Cash App and Grayscale have been all in Bitcoin’s business, eating up more than half of the bitcoin supply, things were relatively very smooth.

Now, nearly seven months following the halving, BTC’s price has increased 10x, currently trading around $18,500.

This jump in price in the backdrop of zero and sub-zero interest rates, money printing by the central banks, and their ever-expanding balance sheets has captured the interest of companies like MicroStrategy and Square, celebrities like Maisie Williams and rapper Logic, high-profile investors like Stan Druckenmiller, Bill Miller, JPMorgan and BlackRock changing their tunes on BTC – seeing it replacing gold.

“All the big hitters in the hedge fund world are coming out to endorse bitcoin now; it is entering the realm of the mainstream,” said Pendal’s head of fixed income, Vimal Gor.

According to him, “ultimately, the government bonds will turn into a “dead asset class,” and cryptos have a part to play there. He added,

“We have so many clients asking us about bitcoin and what to do and how to get access. Large institutions have stayed away so far, but high-net-worth clients and wholesale investors are leading the charge.”

image2

On top of this, PayPal launched its new service enabling its customers to buy, sell, and hold cryptos directly from their PayPal accounts.

With 300 million active users, PayPal offers great potential in crypto adoption. PayPal, Cash App, and Robinhood provide millions of people instant access to Bitcoin, Ethereum, and other digital assets.

Already, in less than a month, the volume has exploded on PayPal’s crypto infrastructure provider Paxos.

itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume up until PayPal got involved.

image1

“PayPal is already buying almost 70% of the new supply of bitcoins. PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins,” noted Pantera Capital in its latest blockchain letter.

If the growth continues, within weeks, PayPal will be buying more than all the newly-issued bitcoin. And this is just PayPal.

While demand continues to increase, this supply shortage will push the price of BTC higher, as we have seen in this quarter. Dan Morehead, CEO of Pantera Capital, said,

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

Read Original/a>
Author: AnTy

Related Articles

Author: ICO Warz