Is Paypal hoarding 70% of newly mined Bitcoin?

[Jromz 2158]

As we all may be aware, Paypal has recently incorporated Bitcoin and other Cryptocurrencies into its platform. According to a recent report by Pantera capital (an investment company). By doing this Paypal is making cryptocurrencies easily available to users of 300 million accounts. According to this new report, Paypal is buying huge sums of Bitcoin to supply such a big market, which has naturally caused scarcity of Bitcoin, an a parabolic increase in the price. Pantera then estimates that Paypal is buying up to 70 % of newly mined Bitcoin that miners put into circulation.

 

Even though Paypal's incursion in Bitcoin is without a doubt beneficial for price in the short term, the question that arises is whether is it a legitimate action that Paypal and other companies, such as Cash App are seeking to monopolize all the newly mined Bitcoin? After all, Paypal does not even give their clients the private keys, which is obviously a major concern. I would love to read everyone's opinion!

 

 

 

Edited November 24, 2020 by Jromz
missing tags

[Masterrex 559]

37 minutes ago, Jromz said:

As we all may be aware, Paypal has recently incorporated Bitcoin and other Cryptocurrencies into its platform. According to a recent report by Pantera capital (an investment company). By doing this Paypal is making cryptocurrencies easily available to users of 300 million accounts. According to this new report, Paypal is buying huge sums of Bitcoin to supply such a big market, which has naturally caused scarcity of Bitcoin, an a parabolic increase in the price. Pantera then estimates that Paypal is buying up to 70 % of newly mined Bitcoin that miners put into circulation.

 

Even though Paypal's incursion in Bitcoin is without a doubt beneficial for price in the short term, the question that arises is whether is it a legitimate action that Paypal and other companies, such as Cash App are seeking to monopolize all the newly mined Bitcoin? After all, Paypal does not even give their clients the private keys, which is obviously a major concern. I would love to read everyone's opinion!

 

 

 

According to the Pantera Capital estimates 70 percent of "newly mined BTC", that's not hoarding, the total Bitcoin in circulation before Paypal was incorporating cryptocurrencies in their platform was already "18Million+ BTC so it was only a small portion of the BTC circulation that paypals hold so its not hoarding remember that the total BTC supply was only 21Million and there are only 2Million+ more BTC is going to be mined in the next few years. 

[Izeal 4404]

PayPal has already got many members more than the volume of the BTC and the PayPal company has already started accepting cryptocurrencies and I am sure they have huge investment in the cryptocurrencies these are also the main reason that the price of bitcoin reached more than $18k and we can even expect more than that. I am sure that PayPal is holding more than 70 of newly mined bitcoin.

[Jromz 2158]

6 hours ago, Masterrex said:

According to the Pantera Capital estimates 70 percent of "newly mined BTC", that's not hoarding, the total Bitcoin in circulation before Paypal was incorporating cryptocurrencies in their platform was already "18Million+ BTC so it was only a small portion of the BTC circulation that paypals hold so its not hoarding remember that the total BTC supply was only 21Million and there are only 2Million+ more BTC is going to be mined in the next few years. 

Yes, you're quite right here. However the report does not refer to Bitcoin's total circulating, but to newly mined BTC that it's put in circulation by miners, of which Paypal is allegedly buying up to 70 % of it, that along a 40 % that  is being bought by Cash app, accounts for more that 100 % of newly mined bitcoin, meaning that other market participants would currently not being able to buy this new Bitcoins.

[1qDan 478]

7 hours ago, Jromz said:

As we all may be aware, Paypal has recently incorporated Bitcoin and other Cryptocurrencies into its platform. According to a recent report by Pantera capital (an investment company). By doing this Paypal is making cryptocurrencies easily available to users of 300 million accounts. According to this new report, Paypal is buying huge sums of Bitcoin to supply such a big market, which has naturally caused scarcity of Bitcoin, an a parabolic increase in the price. Pantera then estimates that Paypal is buying up to 70 % of newly mined Bitcoin that miners put into circulation.

 

Even though Paypal's incursion in Bitcoin is without a doubt beneficial for price in the short term, the question that arises is whether is it a legitimate action that Paypal and other companies, such as Cash App are seeking to monopolize all the newly mined Bitcoin? After all, Paypal does not even give their clients the private keys, which is obviously a major concern. I would love to read everyone's opinion!

 

 

 

Really the bad guys on the scene are neither paypal nor cash app, since the market is totally decentralized and any person or company can buy the amount they want.

 

In fact, it is the best way to buy bitcoin, since doing it through an exchange would cause the bitcoin to easily reach 25,000 dollars in less than a week, it is a way to keep the market stable.

 

And in the case of private keys, basically no online platform gives them (at least none of the ones I use), in this case the legal person would be PayPal and from my own experience I tell you that their support is good as long as you have bases to argue.

[AL SHAIMON 1293]

I think this is very good news. Now PayPal support bitcoin that's mean the future of cryptocurrency is bright. For this action the price for cryptocurrency is pumping now. If PayPal hoard 70% of newly mined bitcoin that's mean they are trying to gain profit from bitcoin and they wanted to use it for 300 million people.

[Edwinvicky 819]

This is good news to crypto community, we all be delighted as many companies, organizations and institutions are gradually adopting crptocurrency. For Paypal to join crypto is a big happiness and big win to all of us. Because we can now safely withdraw btc to our paypal account and then send to our visa or mastercard or bank direct.

[mzk7736 1592]

I think PayPal is exploiting the lack of legislation regarding crypto because people have to depend upon PayPal to get bitcoins especially it's own users. The purchase of bitcoins in huge amount by PayPal can also be a factor behind the increasing price of Bitcoin nowadays.

[ajabe2 1485]

In my opinion using of any centralized service always comes with risk and PayPal wants to provide some kind of it. They clearly stated that you will not be provided with private keys. As a result, we will get an army of misinformed followers of cryptocurrency who do not know the basic principles of cryptocurrency at all.

[Syedbesharat 5423]

Gigantic companies entry in crypto is good news but the course of their action will decide their success because if they start monopolising crypto market their own customers will effected and they will face backlash. Because crypto is a centralized system based on blockchain where all the transactions can be seen publically. Their holding and circulation of crypto can be trackable. 

[rekter 8129]

@Jromz, could you give a link to this report you are referring to? I am skeptical how they figured that out, even though i would assume that Pathera Capital does their research. I would hope that paypal will have btc reserve, but at the moment i don't think that there's no way of telling if they have as they are basically selling IOU.

Edited November 25, 2020 by rekter

[percare 3192]

Paypal doesn't support transfers out or in their wallet. What it is it can be Bitcoin or just something that looks like Bitcoin. Maybe they don't even need to buy Bitcoin but have digits on their app as you don't get a private key and you don't get to do what you want with the Bitcoins bought in Paypal. It is a case of custodial wallet where we have no control and Paypal can even ban our account and block our crypto. I wonder what people that don't know what it is will think of after buying. They wouldn't feel so great about it.

[Barbarellah 2225]

This is an interesting article worth analyzing and reflecting on. In particular, I am not very adept at using PayPal, since I have always seen it as a somewhat complicated platform in terms of the application of its regulations and that it has never given total control of the money belonging to its clients and of course we find out about The fact that PayPal is buying large amounts of Bitcoin benefits us at the moment since it is an action that causes a positive influence on the rise in price, more than the future holds if the company continues to acquire the remaining Bitcoin that remains to be mined.

[Sykkuno 2887]

Paypal is buying 70% of newly bitcoins, Grayscale is buying another 80% and the miners are also increasing their supply as they aren't selling either. There are also many buying and it was already Bitcoin reached 100% rise in a few months. It can be a big correction or a big rise that will happen and I once again love trading crypto and making profits finally.

Edited November 25, 2020 by Sykkuno

[yonkii 3205]

The paypal effect doubled the price of Bitcoin. I don't know if this will continue but it has given the chance for Bitcoin adoption. The rest coins in the list are also good investments and out of all Litecoin can grow more.

[Fixfin 2569]

I wonder if Cash App is giving private keys either, or a way to transfer the bitcoin at least as paypal isn't doing anything like that. Paypal is buying and so cash app and others as Bitcoin has been rising into prices not seen for years. But I hope these services will not be restricting Bitcoin and not give everyone full access to own and hold them in wallets.

[Jromz 2158]

7 hours ago, rekter said:

@Jromz, could you give a link to this report you are referring to? I am skeptical how they figured that out, even though i would assume that Pathera Capital does their research. I would hope that paypal will have btc reserve, but at the moment i don't think that there's no way of telling if they have as they are basically selling IOU.

Sure, mate. That is certainly reasonable, I'm myself a bit skeptical, but this inevitably drew my attention due to its possible implications for Bitcoin. Please find below a link to Pantera Capital Medium account, where they talk about this topic and give some details about their research.

@rekter

https://panteracapital.medium.com/bitcoin-shortage-172a9205dc0

Edited November 26, 2020 by Jromz
grammar

[isther69 521]

On 11/24/2020 at 2:40 AM, Jromz said:

As we all may be aware, Paypal has recently incorporated Bitcoin and other Cryptocurrencies into its platform. According to a recent report by Pantera capital (an investment company). By doing this Paypal is making cryptocurrencies easily available to users of 300 million accounts. According to this new report, Paypal is buying huge sums of Bitcoin to supply such a big market, which has naturally caused scarcity of Bitcoin, an a parabolic increase in the price. Pantera then estimates that Paypal is buying up to 70 % of newly mined Bitcoin that miners put into circulation.

 

Even though Paypal's incursion in Bitcoin is without a doubt beneficial for price in the short term, the question that arises is whether is it a legitimate action that Paypal and other companies, such as Cash App are seeking to monopolize all the newly mined Bitcoin? After all, Paypal does not even give their clients the private keys, which is obviously a major concern. I would love to read everyone's opinion!

 

 

 

It seems good to me that PAYPAL is incorporating BITCOIN on its platform, you could see this issue coming, the problem with the platform is that it only allows you to exchange your currency (dollar, euro, among others) for cryptocurrencies without being able to withdraw to any other portfolio of Your preference, which I see as very negative because you are practically handing over your cryptocurrencies to a third party who can make a good profit when blocking your PAYPAL account, just like they do with limited accounts which people lose their money, my Personal advice, let some time pass until they allow you to withdraw the cryptos to the portfolio of your choice.

[rekter 8129]

1 hour ago, Jromz said:

Sure, mate. That it's certainly reasonable, I'm myself a bit skeptical, but this inevitably drawn my attention due to its possible implications for Bitcoin. Please find below a link to Pantera Capital Medium account, where they talk about this topic and give some details about their research.

@rekter

https://panteracapital.medium.com/bitcoin-shortage-172a9205dc0

Thanks, that was good article, but i still didn't get their point. They said that Paxos provides paypal crypto infrastructure. I am not sure what that means exactly... Does it mean that Paxos buys and stores btc for paypal customers? But if it's a collaboration, why Pantera capital draw conclusion that paypal would use their own money at all? They must just be speculating how much paypal customers are buying at the moment.

[Braulio Eurea 720]

Paypal accounts for 70% of the bitcoin extracted, well this surely is due to the fact that bitcoin has little world supply and within a few years it will no longer be possible to extract bitcoin, so it will be very scarce, that is, little supply which will cause its price to fall. raise enormously, and Paypal is preparing to make these extraordinary profits that bitcoin will bring you in a few years.

[Froshk 1828]

PayPal is supposed to flood the market with these newly minted bitcoin, hoarding it will further hike the price money of btc thereby making it difficult for prospective investors to purchase. 

Edited November 26, 2020 by Froshk

[Jromz 2158]

On 11/25/2020 at 4:34 PM, rekter said:

Thanks, that was good article, but i still didn't get their point. They said that Paxos provides paypal crypto infrastructure. I am not sure what that means exactly... Does it mean that Paxos buys and stores btc for paypal customers? But if it's a collaboration, why Pantera capital draw conclusion that paypal would use their own money at all? They must just be speculating how much paypal customers are buying at the moment.

I agree the article is somehow ambiguous. I went further to investigate more about the rationale used by Pantera capital to make these estimations. Firstly, the term "crypto infrastructure" seems to refer to an alliance between Paypal and Paxos, in which the latter facilitates access to Bitcoin to the former, via its internal exchange "itBit". Then, Pantera used metrics from this exchange to estimate the amount of Bitcoin on Paypal and produced the chart below. 

 

According to Pantera, the white line in the chart shows a steady amount of trading volume during the months previous to Paypal's integration of cryptocurrencies (January to October). The sudden increase in the line (October) represents an explosion in itBit's trading volume after Paypal's inclusion of cryptocurrencies service. As we can see, the end of this white line approaches to a dashed horizontal line, representing the total supply of newly-issued bitcoins plus the original itBit volume, accounting for about 70%. In addition, Pantera predicted that if this trend continues (dashed continuation of white solid line, i.e., trading volume), PayPal alone would be buying more than all of the newly-mined Bitcoin in a short period of time.

 

 

Edited December 5, 2020 by Jromz
misplaced chart

[pablomarwan 3082]

I do not know if there is a law prohibiting this trade, but this is considered a monopoly. The company will seek to store the currency and become a platform for digital currencies, or perhaps it is possible to provide companies with this currency. A little confusing thing because this monopoly has a great aim.

[kryptonick 2659]

What I want from Paypal is transparency. Show us the wallet and the purchases as I have a feeling they don't tell the exact truth. There is a small chance they don't buy all the Bitcoin their users are buying, since they don't need to. They don't give any public address on the wallets so we don't know if the paypal user bought Bitcoin or not. It can be they bought but Paypal didn't and it is only a representation in the Paypal wallet.

[Mella 3680]

We are watch a very high interest from paypal users to buy Bitcoin but this is only in the usa. We are have to see the effect it will has in the rest of the world and it will be very bigger, as in the usa the people were already bought Bitcoin and there are countries that have banned Bitcoin but allow paypal.