More Bitcoin news!
PayPal Chief Executive Officer Dan Schulman said the use of digital currencies is set to go mainstream as more merchants take a “digital first” approach to payments.
“The entire world is going to come into digital first,” Schulman said at the Web Summit conference on Wednesday. Shops are moving to accept payments via smartphones and QR codes, even in-store, and more customers are starting to use digital wallets, which “are natural complements to digital currencies.”
PayPal announced in October that its customers can buy, sell and hold cryptocurrencies including Bitcoin, Ether, Bitcoin Cash and Litecoin from digital wallets, as well as use the virtual money to shop at the 26 million merchants on its network.
Asked about who he sees as PayPal’s biggest competitor, Schulman said he is keeping an eye on Ant Financial. China’s largest mobile-payment company has had “tremendous success” in the country, Schulman said, with a comprehensive digital wallet that includes “all elements of financial services, all elements of shopping.”
Schulman said PayPal’s biggest opportunity is to move away from cash and toward digital payments. While that trend has already been happening, “now with the pandemic, that’s accelerating and you’re seeing an explosion in digital payments,” he said.
Shrinking BTC Supply and Price
Reports that other institutional investors and high net worth individuals are also buying BTC. According to Bitcointreausuries, a site that keeps tracks of public companies that hold bitcoin, over 800,000 BTC or 4% of the total circulating supply is in the hands of public companies.
Therefore, as more institutional investors add BTC to their liquid reserves, this has the effect of shrinking the circulating supply. This in turn adds upward pressure on the price of BTC which is now likely to set another all-time high in the next few months or even weeks.
CoinShares chair and former JP Morgan commodity trader Danny Masters told CNBC that the financial landscape has changed to the point where not having exposure to Bitcoin could be a riskier move for portfolio managers than investing in it.
Interviewed on Power Lunch, the head of the digital asset management firm referred to the fact that in the past it was seen as risky for asset managers working in institutions to put money into Bitcoin. But he claimed that the “perceived career-risk for having Bitcoin in your institutional portfolio, as a portfolio manager, is fast migrating into a career-risk for not having Bitcoin in your portfolio, and that’s a really stunning development.”
Masters believes that perceptions of Bitcoin as an extremely volatile asset had subsided because “the volatility of other asset classes has proved to be a lot more volatile than people expected.”
He said that Bitcoin has shed its former negative stigma among mainstream investors and that it's no longer a question of if companies will get exposure to the digital asset, but when and how much, citing investments from Square, Microstrategy, and Paypal.
These companies “are outperforming the market because they are going public with their exposure to Bitcoin,” and as a result: “Sentiment is electric, there is no doubt about that.”
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