By Bentley Kapoor (India)
The latest from the crypto industry suggested that majority of Bitcoin’s fresh supply is being acquired by clients of PayPal and Square.
It has been reported that almost every new Bitcoin’ssupply brought into the market recently, landed at Paypal and Square.Pantera Capital which is an independent analyst of crypto had revealed this news. It told that this is because investors find it easier to buy crypto through fintech companies. In this way they do not need to sign up with a crypto exchange platform, suggested Pantera.
Pantera also stated that this is the reason why there had been a surge in the prices of cryptocurrencies overall. The same factor had been helping out Bitcoin to fetch further increases in very short span of time. Subsequent to this, Bitcoin too had been gradually nearing the US$ 20K mark. Similarly, investors had been using fintech companies to buy crypto assets because they don’t need to sign up with an exchange.Meanwhile, Paul Tudor Jones announcement of backing Bitcoin had allowed Bitcoin to fetch further high price, said Pantera.
Another reason why most of the investors are using fintech companies was explained by Pantera. Pantera told that as compared to exchanges, fintech companies are considered more trustworthy, transparent and efficient.
Pantera also revealed that in past two years 40% of fresh Bitcoin supply was bought by clients of Square. It is also expecting that PayPal might be more demanding in terms of acquiring fresh Bitcoin supply than Square.
A few weeks back PayPal had launched its crypto services and entered into partnership with Paxos for crypto trade and storage facilities. Resultantly, the exchange volume at itBit, an exchange of Paxos, had almost tripled since partnering with PayPal. It was revealed by Pantera that approximately 70% of fresh Bitcoin supplies entering market, had been acquired by PayPal’s customers.
Yet the important thing to note is that maximum of 21 million of Bitcoins could ever be issued. Nothing less or above than that. Out of this 21 million at least 18.5 Bitcoins had been mined and circulating in the market. This means that only 2.5 million more Bitcoins still remain to be mined and made available in the market.
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