Big announcement PayPal on offering cryptocurrency trading services conquered the financial world. The time has come when every major global bank will possibly provide support for the world's largest cryptocurrency.
On Wednesday, October 21, online payment giant PayPal Holdings Inc (NASDAQ: PYPL) announced its entry into the cryptocurrency market by launching its cryptocurrency trading services. Licensed by NYDFS, PayPal has said it will launch its cryptocurrency trading services for the first time in the US market in the coming weeks. Later, by early 2021, it will expand services to the global market. Bitcoin enthusiasts and the entire cryptocurrency market were delighted with this news. BTC has hit another milestone in the last 24 hours, jumping 8% and rising above the $ 13000 level, fueled by news of crypto services from PayPal. This quick move happens just 24 hours after BTC crosses the $ 12000 mark.
At press time, Bitcoin is trading up 6,65% to $ 12 with a market cap of $ 797 billion. On the weekly charts, the bitcoin price has risen by almost 236%. With this move, the world's largest cryptocurrency also expanded its market dominance, surpassing 15%. PayPal's entry into the crypto space recently got the industry heavyweights talking about it. Some analysts say this will force every major bank in the market to offer Bitcoin support.
After PayPal'a news, every major bank is having a meeting about how to support bitcoin. It's no longer optional ... pic.twitter.com/eQrdfa4KJ7
- Chamath Palihapitiya (@chamath) October 21, 2020
The benefit of PayPal's announcement is that the online payments giant will also expand its support for cryptocurrency purchases. This means crypto users on PayPal can buy products by making payments on purchase. However, merchants will continue to receive payments in fiat. With over 346 million active accounts worldwide, the scale is enormous.
Cryptocurrency in PayPal account cannot be transferred to other accounts
Along with cryptocurrency trading services, PayPal will also allow account holders to store cryptocurrency in their digital wallets. However, PayPal's terms of service state that with the PayPal digital wallet, users can only store the cryptocurrencies they buy through their PayPal account. Moreover, they cannot transfer cryptocurrency from PayPal to other accounts and vice versa.
# phase5https://t.co/aR7JmhKQGU
— PlanB (@100trillionUSD) October 21, 2020
This restriction has been disliked by the crypto community, which believes it will limit the very freedom that cryptocurrencies can offer. It looks like things will be cleared up in the coming weeks. Cryptocurrency analyst Will Wu also presents another interesting fact with real numbers.
Referring to Glassnode data, Will Wu noted that Bitcoin's user base is more than half of the total Bitcoin users. Moreover, he adds that over 2,4% of the world's population is currently using BTC. He adds that we will soon be moving out of the "early adoption" stage and into the "early majority" stage.
Presently 2.4% of the world population are HODLers of # Bitcoin... We are now broaching the early adopters phase.
You are very early on the curve.
User adoption is about to go exponential according to the S-curve adoption. This is why BTC will decouple stocks, and it is very soon. https://t.co/zX1hmZqNGB pic.twitter.com/uDYm2xWNBK
- Willy Woo (@woonomic) October 21, 2020
Needless to say, the release of PayPal has really made the big players in the financial markets curiously wonder if they are NOT missing out on this opportunity. We can expect more players to follow suit. Also, with the rise of institutional participation, bitcoin mania has just begun to develop.