Pantera Capital, a prominent cryptocurrency and blockchain investment firm has liked the shortage in supply of bitcoin to the purchase of about 70% of the newly mined bitcoin.
In a letter published in Medium on Nov 20, the founder and chief executive of Pantera, Dan Morehead said that PayPal is already buying 70% of the new supply of the bitcoin, with Cash App also buying a good percentage of the supply of about 40%. “PayPal and Cash App are already buying more than 100% of all newly issued bitcoins”, he said.
He added that PayPal may end up buying more than all the newly issued bitcoins within weeks, which would lead to more supply shortage and a spike in the price of bitcoin, especially when other larger financial institutions follow their lead.
According to Pantera “The supply scarcity will become even more imbalanced. The only way supply and demand equilibrate is at a higher price.
In the last 24 hours, bitcoin is up by 2.73%, still maintaining its 18k mark, with a current price of $18,545.35. Within 24 hours, bitcoin dropped to $17,990.11 low and $18,752.16 high. The trading volume of bitcoin in the last 24 hours is $33.08B. The current market capitalization of bitcoin is $344.04B. Currently, 18,548,962.5 bitcoins is in circulation.
Image from Coin Desk
Recently in October, PayPal integrated bitcoin and other cryptocurrency use to its platform to enable its millions of users to buy, sell and hold cryptocurrency directly from their PayPal accounts.
Dan Morehead said, before now, it used to difficult buy bitcoin, but with the recent move of PayPal which is a global business, it is now easy for millions of users to become potential buyers and traders of bitcoin, litecoin, ethereum and LTC.
“Previously the friction to buy bitcoin was pretty onerous”, he said.