In a recent letter to investors, Pantera Capital Crypt Fund informed that PayPal payment company has purchased the equivalent of almost 70% of all bitcoins produced in the last month.
This month PayPal opened its cryptovoltaic service to US customers. The company noted a high demand for cryptocurrency among users.
Pantera calculated the number of bitcoins on PayPal using data from the ItBit trading platform, which is owned by Paxos. „PayPal launched its cryptographic service in partnership with Paxos. Before integration with PayPal, the ItBit exchange, which is managed by Paxos, had a fairly constant trading volume – the white line on the chart below,“ writes Pantera.
Since the launch of the PayPal cryptographic service, the volume on ItBit has increased dramatically: „The increase in volume on itBit means that within four weeks of the launch, PayPal is already buying almost 70% of the new bitcoin supply.
The dotted horizontal line on the chart represents the total amount of bitcoins produced. If growth continues, demand for PayPal alone will exceed the number of new bitcoins in a few weeks.
„When other, larger financial institutions follow suit, the supply shortage will become even more unbalanced. The only way to balance supply and demand is through a higher price,“ the analysts conclude.