Paypal bought up to 70% of all the newly mined bitcoin recently - page 4.

Sithara007

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Quote from: philipma1957 on November 24, 2020, 12:40:35 AM

I have two accounts. So the 346 million may really be 250 million different people.

So 10% could be 25 million so 100 bucks each is 2.5 billion

that would be 125000 coins so 200 days of buying at 20k a coin could happen.

The 10% figure sounds fair to me, so does the average of $100 per user. What I am hoping is that, since the prices are moving up so rapidly, at least some of those who made initial investments of $50 or $100 would make repeat purchases of $500 or $1000. Let's not forget the fact that the daily supply of freshly mined coins stand at around 900 BTC. If something like this happens, then there will be a sharp supply crunch at the market.

ampu

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Quote from: philipma1957 on November 23, 2020, 12:41:13 PM

Quote from: ampu on November 23, 2020, 10:30:43 AM

The decreasing amount of BTC on exchanges with Paypal offering Bitcoin on their payment system that they buy 70% of the mined Bitcoins shows their determination to provide related services. to Bitcoin and cryptocurrencies.
Bitcoin's value has not declined since last month since there is no source to sell to the market. I see this as the main reason that led to the sharp rise in Bitcoin price in October and November.

Yeah but if they are buying 12.6 million a day or 630 coins at 20k each.

The real question is how long will they do this?

in 20 days it would be over 252million usd in btc.

I think at a certain point in time they stop buying the coins.

As the buyer market dries up.

When they create a sufficiently large demand on their system, Bitcoin will continue to increase in value. As far as I know, they are only providing Bitcoin-related services in the US. If they expand around the world next year then more people will buy Bitcoin.
When everyone's demand stops, Paypal will either decrease or stop buying Bitcoin from mining pools to secure their profits.
I think the fact that they provide Bitcoin to their users gives Bitcoin a larger network. I'm not worried about them stopping buying Bitcoin because companies sell off Bitcoin after they've kept it from a very low price.

jacafbiz

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If one look at all these new companies entering the space now and their customer base, one would realize that their buying power is so strong that they can buy up all the new mined BTC and won't be enough to satisfy their demand. This is why people need to be cautious now and not to gamble with their BTC because once is sold you may not be able to buy it at that price again

bitgolden

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Unfortunately they are not going to keep buying at this speed, it is impossible to keep this up. The difference is basically similar to what happened with uniswap as well, there was a lot of uniswap interest that made it go into billions right away, but dropped to under 200+ million or so after a while.

Paypal started out and when they first started there was a lot of interest towards it which made it a lot more interesting to some people and they all bought it and that resulted with them getting most of the coins. This means after a period of time it will be something expected and common and not a hyped thing, and that will cause it to drop a lot as well. Plus paypal is not really an exchange but it is just a third party, which means if people stop buying, they will sell and paypal will sell too.

coin-investor

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PayPal is now doing things to their advantages, they have the capability to do that, 70% is a huge amount of Bitcoin, this will indeed make a big impact in the market, there's no doubt that PayPal is planning to become a major player in the industry, maybe the next time is for them launching their own exchange, it's not a remote possibility, for a company that has a name, reputation and a huge network anything can be done.

Looks like Binance has a huge competitor coming.

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Quote from: shoreno on November 24, 2020, 02:29:20 AM

im surprised that we still didnt hit 20k dollar after this news because the percent of btc that they have bought as shown on this thread was too huge .

20k dollars is the price that we wont only be getting but we can go further than that if the reaction starts to trigger but i think it was delayed so all we can do for now is to wait and to keep on hodling . paypal is high class because they bought new minted coins , they are like banks that issued fresh money . thats cool

take it easy the price of bitcoin will easily penetrate to the price of $ 20k because until now I have seen many who are starting to support bitcoin, one of which is a big product like paypal which is starting to support bitcoin, keep buying as much bitcoin as we can and keep holding and don't miss this opportunity .

shoreno

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Quote from: Poker Player on November 22, 2020, 04:08:53 PM

I think we are going to hit 20k pretty soon. News like this are non-stop these days. I don't want to even think what will happen when the general public FOMO starts.

im surprised that we still didnt hit 20k dollar after this news because the percent of btc that they have bought as shown on this thread was too huge .

20k dollars is the price that we wont only be getting but we can go further than that if the reaction starts to trigger but i think it was delayed so all we can do for now is to wait and to keep on hodling . paypal is high class because they bought new minted coins , they are like banks that issued fresh money . thats cool

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This is crazy! It seems that Bitcoin is actually showing its credibility and inflation reduction function. In addition, we have seen since the Bitcoin buying / selling service took place in Paypal, there have been a lot of traders involved in using the service and even blocking transactions when the demand for trade is too high.
By the end of 2020 this will be a great year for Bitcoin, I think it will soon break the ATH peak and climb above the $ 25k price point this year. Do you think Bitcoin can do that? If yes, kindly give me the reason , i really appreciate that.

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Quote from: Sithara007 on November 24, 2020, 12:28:42 AM

Quote from: philipma1957 on November 23, 2020, 12:41:13 PM

Yeah but if they are buying 12.6 million a day or 630 coins at 20k each.

The real question is how long will they do this?

in 20 days it would be over 252million usd in btc.

I think at a certain point in time they stop buying the coins.

As the buyer market dries up.

PayPal is having an user-base of hundreds of billions of users (346 million active accounts, as per one source). From what I have seen, the average purchase per user is in the range of $20-$100. That would mean that the $252 million figure that you have quoted here would account for just 5 million or so users, which represent less than 2% of the total users. There is a lot of room to grow, to 50 or 100 million.

I have two accounts. So the 346 million may really be 250 million different people.

So 10% could be 25 million so 100 bucks each is 2.5 billion

that would be 125000 coins so 200 days of buying at 20k a coin could happen.

Sithara007

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Quote from: philipma1957 on November 23, 2020, 12:41:13 PM

Yeah but if they are buying 12.6 million a day or 630 coins at 20k each.

The real question is how long will they do this?

in 20 days it would be over 252million usd in btc.

I think at a certain point in time they stop buying the coins.

As the buyer market dries up.

PayPal is having an user-base of hundreds of billions of users (346 million active accounts, as per one source). From what I have seen, the average purchase per user is in the range of $20-$100. That would mean that the $252 million figure that you have quoted here would account for just 5 million or so users, which represent less than 2% of the total users. There is a lot of room to grow, to 50 or 100 million.

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Quote from: Poker Player on November 22, 2020, 04:08:53 PM

Now that’s according to estimates by hedge fund manager Pantera Capital, as revealed in its latest monthly blockchain letter. Together with Square’s Cash App, the two companies are buying more than 100% of all newly issued virgin bitcoin (BTC), it says...

How can you buy more than 100% of something? lol

And I wonder how do they buy freshly-mined coins, do they buy them directly from miners, or there are some special platforms for that, or maybe they use some middleman? And if it's true, why they want virgin bitcoins instead of just buying coins on the market - are they scared of authorities? And how do they deal with virgin bitcoins costing more than the normal bitcoins - their profit margins are already now very big to begin with.

Kupid002

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Quote from: cabron on November 23, 2020, 02:13:13 PM

Paypal seemingly made the prices soar after their announcement. If they are buying 70% of virgin BTCs, are they going to allow their users to withdraw BTC after all these?

I only read it from Reddit that they don't allow withdrawals so it's pointless all the collecting BTC if they are no going to send it to anyone who wants to withdraw the BTC out of their platform.

This one cannot be answered yet we need them to officially announced that update hopefully they will , because that's the only reason I see why they are continues buying a lot of Bitcoin they are preparing to have many in their own and sell it to their platform once they fully accept crypto trading in PayPal platform.

cabron

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Paypal seemingly made the prices soar after their announcement. If they are buying 70% of virgin BTCs, are they going to allow their users to withdraw BTC after all these?

I only read it from Reddit that they don't allow withdrawals so it's pointless all the collecting BTC if they are no going to send it to anyone who wants to withdraw the BTC out of their platform.

el kaka22

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I am not going to say this is something small and not important because obviously buying 70% of all minted coins is a big deal for any company. However you have to realize if we are talking about numbers, binance had about 10x more bitcoins bought with USDT on their website during the same period and nobody is shocked about that.

Do not get involved with bitcoin from a hype created by paypal, if you want to use paypal because it is easy you are free to do that but if you connect this bitcoin increase to only paypal, that means if paypal comes out tomorrow and says "we decided that crypto doesn't work for us and we are stopping all our crypto works this week" you would end up selling all of your coins that is not even on paypal because you would be scared paypal is the only reason.

I disagree with that notion and believe paypal is just one part of it while there are ton of other reasons for bitcoin to go up.

philipma1957

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Quote from: ampu on November 23, 2020, 10:30:43 AM

The decreasing amount of BTC on exchanges with Paypal offering Bitcoin on their payment system that they buy 70% of the mined Bitcoins shows their determination to provide related services. to Bitcoin and cryptocurrencies.
Bitcoin's value has not declined since last month since there is no source to sell to the market. I see this as the main reason that led to the sharp rise in Bitcoin price in October and November.

Yeah but if they are buying 12.6 million a day or 630 coins at 20k each.

The real question is how long will they do this?

in 20 days it would be over 252million usd in btc.

I think at a certain point in time they stop buying the coins.

As the buyer market dries up.

SaShiRaJaVu

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Quote from: AmoreJaz on November 22, 2020, 04:29:52 PM

we really cant deny the fact that paypal has contribution with the current btc market. though most long-time crypto users here will not use their service, there will always be paypal users that will definitely use their crypto services. and we cant ignore the fact that they have millions of users already.

It is a company that is running for over two decade and they have much bigger user base and it might attract users that are not accustomed to bitcoin and for them to acquire 70% of the newly minted bitcoin says a lot about the volume they are getting. I was not sure what their business model would be as they are not allowing to withdraw the coins, now we have a clarity on that on the long term.

Quote from: AmoreJaz on November 22, 2020, 04:29:52 PM

so yeah, seems that paypal is storing their btc stash to be available anytime to its users. wont be surprised if they will create their own crypto exchange in the future.

It is possible that they could start their cryptocurrency exchange and they are well aware of the huge profits these cryptocurrency exchanges make annually and focusing their business model to cryptocurrency will help them grow as a company as well.

nrvasquez

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Ofcourse as a big party, Paypal will get the highest profit from FOMO and bullrun this time. but on the other hand they are also the party that triggers the bullrun, so I think it will be a healthy bullish if other big parties participate.

ampu

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The decreasing amount of BTC on exchanges with Paypal offering Bitcoin on their payment system that they buy 70% of the mined Bitcoins shows their determination to provide related services. to Bitcoin and cryptocurrencies.
Bitcoin's value has not declined since last month since there is no source to sell to the market. I see this as the main reason that led to the sharp rise in Bitcoin price in October and November.

manfredmann

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Pretty sure paypal has a huge bitcoins holding now. However, as they are planning to make more bitcoins available to all of their users wishes to get more bitcoins using their platform. This means that bitcoin is ready and available and this is actually a good news to bitcoin and bitcoin users. The result is clear and visible that bitcoin market now has been doing well. We are already in th bullish trend and we will hope that it can grow and break the ATH recorded in the year 2017.

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It's not surprising tbh, Paypal is acting as the wallet for users who buy crypto using Paypal after all, and even if we do consider that it's only in the US, it's still a pretty big population. Imagine if they spread the function for global use, they'd buy quite an amount of Bitcoin imo just to accommodate the buys made by their customers. Ofc, this still means that paypal actually holds the bitcoin of their customers, not them.

Quote from: jseverson on November 22, 2020, 10:00:36 PM

I'm inclined to agree with you, but never is a strong word. The fact that Paypal is stocking up could indicate that every bit (or at least most) of Bitcoin they sell will be backed by real coins (which was a concern for some people when it was initially announced), so they would at least be capable of allowing users to withdraw BTC. I'm not holding my breath, but they haven't even rolled out this service worldwide yet, so it's probably far from a finished product as far as they're concerned.

Well, currently it's a never. That's a fact imo. And Paypal is basically stocking up on coins themselves because a rise in BTC price means they have to join the flow of increasing the BTC-USD rates in their company itself. That isn't the problem here really, it's just a matter of how Paypal is holding the coins when it's the customer themselves who should be holding it. It's like asking someone to hold your wallet. As for worldwide, afaik they were looking for a crypto merchant that could accommodate for each country, which is why it was only mainly tested on the US, since they already had negotiations done.

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