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PayPal Surprise Announcement Pushes Bitcoin Towards $13k

Today, Per MarketWatch, PayPal PYPL announced “that it is introducing a way for customers to buy, hold, and sell certain cryptocurrencies within the PayPal wallet. This will roll out over the coming weeks in the U.S…initially, PayPal users will be able to buy Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.”

“PayPal intends to bring this function to its Venmo platform and to certain international markets in the first half of next year…starting early next year, PayPal users will be able to use cryptocurrency to pay for goods or services from merchants who accept PayPal.”

The news has PayPal up over 4% and every cryptocurrency to be listed on PayPal up well over 5%.

PayPal’s announcement falls in line with a growing trend by public companies in 2020 looking at bitcoin as a digital store of value and boost to stock prices, e.g. MicroStrategy MSTR and Square SQ .

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However, one item does merit acknowledgment — PayPal’s fine print.

Unlike competitor Square, PayPal will initially not allow cryptocurrency transfers outside the platform nor customers actually be in possession of their private keys. This notion is unfortunately punitive to customers, but is unlikely to inhibit customer adoption in the near-term.

In 2020, bitcoin fundamentals have continued to grow as larger buyers have consistently entered the market with the likes of MicroStrategy, Square, and PayPal being the few to publicly acknowledge their participation.

Given the current positive feedback loop of stock prices being rewarded for gaining exposure to cryptocurrencies, the trend is likely to continue, which bodes well for bitcoin in the near-term.

Disclosure: The author owns bitcoin, ethereum, and thorchain.

Source: Forbes – Money

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