PayPal’s Schulman, the CEO, said that bitcoin and crypto-assets derive value out of their inherent utilities and will continue to do so next year. It’s now a well-known fact that the payments giant is deep into the Bitcoin market so let’s read more about it in the latest BTC news.
CEO Dan Schulman explained more on why his company is placing huge bets on BTC. PayPal’s Schulman said that BTC and the aggregated class of crypto assets derive value from utilities. He pointed out a scenario where the dependability on cash decreased by 40 up to 70 percent due to the ongoing coronavirus pandemic. Central banks are expected to go digital and convert paper fiat into their electronic twins. He continued:
“As paper money slowly dissipates and disappears from how people are using transactions, central banks especially on the retail side will need to replace paper money with forms of digital fiat currency,” says @PayPal CEO Dan Schulman. pic.twitter.com/pLuvc2RxPY
— Squawk Box (@SquawkCNBC) November 23, 2020”
The above said will bolster the utility aspect of crypto assets in a significant way and the company will then allow the usage of crypto as a funding source for 28 million merchants that use the platform:
“Early next year we’re going to allow cryptocurrencies to be a Funding Source for any transaction happening on all 28 million of our merchants and that will significantly bolster the utility of cryptocurrencies”
Schulman pointed out that the key to success in crypto is in working as a team with regulators. As previously reported, Pantera Capital attributed to the strong BTC rally along with Square’s and PayPal’s aggressive buying spree. When PayPal went live, the volumes exploded and the increase in itBit volume only shows that within four weeks of going live, PayPal is buying most of 70% of the new supply of BTC. Cash App is also buying about 100% of the newly issued bitcoins, hand in hand with PayPal.
The buying pressure from these companies caused an acute shortage of coins in the market. Due to the pre-set supply maths which is turn pushed the BTC prices up. The top institutional investment companies that are focused on BTC and crypto investments fund Grayscale logged the best quarter with the stash size hitting 500,000 BTC. The accumulated buying activity explained why prices of the main cryptocurrency is on the way to reclaiming all-time highs.
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