Paypal is identified as one of the main responsible for the rise of Bitcoin in 2020
At least 65% of people who use the Paypal app to trade Bitcoin are prepared to start using the main cryptocurrency to pay for goods and services in the 28 million stores maintained by the payments company worldwide. According to a proprietary survey of 380 Paypal users by Mizuho Securities, 17% of respondents said they have traded Bitcoin (BTC) through their Paypal accounts since the company started offering cryptocurrency services in October.
Of these, most are those who have shown availability to use Bitcoin for purchases. The discovery is significant in that it reinforces Bitcoin’s credentials as a viable payment method – something that Bitcoin opponents have routinely used to discredit the digital asset.
Paypal is expected to allow all of its customers to use Bitcoin as a source of finance to pay for goods and services in its 28 million global merchants as of the beginning of 2021. The company has about 346 million active users.
The survey found that Bitcoin dealers use the Paypal app three times more than non-bitcoiners and that they had significantly higher cash balances in their Paypal digital wallets. She pointed out that 50% of traders reported using other Paypal functions, such as pay-in-4 and QR code, after they started trading Bitcoins on the platform.
Dan Dolev, an analyst at Mizuho, believes that Paypal’s revenue is expected to rise 20% in 2021 thanks to the new cryptocurrency service. He also raised his share price target from $ 270 to $ 290. Paypal shares fell 1.84% to $ 212.56 at the closing price on December 2. The Nasdaq listed company is over 100% in the year.
Recently, hedge fund manager Pantera Capital revealed that Paypal has bought up to 70% of all newly extracted Bitcoin since the payment giant began offering cryptocurrency services in October. Along with Square’s Cash App, the two companies are buying more than 100% of all newly issued virgin BTCs, he said.
With demand so high, Paypal’s entry into the crypts appears to have spurred a sharp rise in the price of Bitcoin. The asset temporarily broke its 2017 peak on November 30, when it reached $ 19,864, but has since dropped to $ 19,350 at the time of this writing.