A current survey conducted by Mizuho Securities, a Japanese investment banking and securities firm revealed that 17% of Paypal users have already used the Paypal app to trade BTC (Bitcoin). Also, 65% of those who traded expressed that they are willing to use the cryptocurrency to purchase goods and services.
As further stated in the survey, there has been a remarkable increase of 50% in the use of the Paypal app by PayPal bitcoin traders after beginning to trade bitcoin. This comes pale with the 9% who reported reduced engagement.
The adoption of cryptocurrencies in its platform had caused prices of digital assets to surge. After the announcement, BTC (bitcoin) recorded a 5% increase. ETH (ethereum) on the other hand was up by $2.2 while BCH (bitcoin cash) jumped by 4.5%.
Paypal shares also surged by 5.5% in the session. They closed at $213.07 at the time of the announcement. Currently, Paypal’s share value is at $216.10.
In a recent report by Pantera, the entry of Paypal has caused a shortage in bitcoin. The majority of newly minted BTC is being siphoned by PayPal.
In reference to itBit data, Pantera explains:
“When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins.”
Paypal together with its rival, Cash App is now buying up all of the newly-issued Bitcoin.
With the adoption of bitcoin and other cryptocurrencies by institutions like Paypal, price hikes become inevitable. The recent price surges have attracted other institutional investors in the game. Even Wall Street giants have already ventured into digital assets particularly with bitcoin. Guggenheim Funds Trust was the newest addition to the growing list. The company has recently invested 5M in bitcoin through Grayscale’s Bitcoin Trust product (GBTC).