According to Pantera Capital, payment service provider PayPal and financial service company Square are major catalysts for the continuous increase in the price of Bitcoin. Pantera Capital said the companies are acquiring large amounts of Bitcoin, leading to a shortage of digital assets. The shortage of Bitcoin is therefore causing the spike in BTC’s price.
PayPal and Square are currently making significant moves in the crypto space. Earlier in November, Square funded a developer, Maggie Valentine, who was working on making Bitcoin wallets easier for people to use.
Likewise, PayPal has also entered into the cryptocurrency market. On the 21st of October, PayPal announced that its users can now shop with cryptocurrencies. With its 346 million active accounts, the company declared support for four digital assets. They are Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTE). According to Pantera Capital:
“Previously, the friction to buy bitcoin was pretty onerous: take a selfie with your passport, wait days to a week to get activated, daily limits, Three hundred million people just got instant access to Bitcoin, Ethereum ], and other cryptocurrencies. BOOM! The results are already apparent.”
Pantera Capital noted that investing in Bitcoin is now much easier and keeps getting more comfortable with the use of apps such as PayPal.
The company added that Square’s Cash App is acquiring about 40% of all newly-mined BTC. In total, Cash App and PayPal are buying more than 100% of all newly-issued Bitcoin. This will create a 10% shortage in the market.
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