Newly Mined Bitcoin Bought by Square And PayPal
According to research from venture capitalists, the introduction by both Square and PayPal as crypto trading platforms seems to have rocketed the price of Bitcoin in recent weeks. Estimations claim that nearly all newly mined Bitcoin is being bought by the two Silicon Valley companies. Meanwhile bankers estimate that a new round of stimulus cheques, both in the US and Europe, as a result of the second Covid-19 wave, could further water down the US dollar and the Euro. In turn, this would result in a higher price for goods of which the quantity cannot be inflated, such as gold and Bitcoin.
Square and PayPal
The introduction last month of PayPal as a platform where crypto could be traded means that all newly minted Bitcoin are now being bought by both the originally Peter Thiel and Elon Musk founded company together with that other Silicon Valley newbie, Square.
Payment giant PayPal bought up to 70% of all newly-mined Bitcoin. - Coinnounce via BTCnews on iOS https://t.co/hkl00RQ5kA— BoBoCrypto (@CryptoVetXRP) November 23, 2020
Both those firms are purchasing up all newly minted Bitcoin in order to distribute it among their customers, who are eager to get their hands on Bitcoin, a good that cannot be deflated.
Covid’s second wave
Meanwhile, both in the US and Europe, economists are anticipating a worsening outlook because of a second wave (for the US their third actually) that is having far worse results than the first. With a lockdown in Europe longer than the first and a national lockdown looming in the US during the busy holiday period, commentators agree that a second round of stimulus cheques in the US and bond buying by the ECB in Europe will probably be necessary.
For gold and Bitcoin, this is most likely very good news. Because of both above reasons, venture capital firm Pantera seems to believe that this rally is much more sustainable than 2017. The next few weeks and months will show whether or not they are right.